2.1 Introduction A literature survey is carried out to find out and review literature related to the field of study. The purpose of this chapter is to review available literature related to the research topic. Literature review is divided into three major units including introduction, related research and summary. Related research area is divided in to three sub sections with regards to the problem statement of the research. Reviewing literature related to the field of study helps the researcher as well as the reader to understand the subject clearly and identify what research has been done related to the chosen field of study. Researcher can also use these gathered information to analyze and evaluate data.
2.2 A sustainable supply chain integrates the three dimensions of sustainability; economical, environmental and social. The social, environmental and economic factors are also characterized as the three dimensions of performance within the accounting framework called "The Triple Bottom Line"; 3 P’s-people, planet and profit (Carter and Roger, 2008).
2.2.2 Sustainable practices implemented in Sri Lankan textile industry- Building Green factories. The textile & clothing industry has been the life blood of Sri Lanka’s economy for decades and has helped to transform the island into a middle-income country, utilizing enormous resources of water and energy. Since the new regime of international trade agreements under World Trade Organization (WTO) require that the textile & clothing production processes should comply with the local and international environmental standards, if these standards are not followed precisely, Sri Lankan textile & clothing products would not be accepted in the international markets. Hence today the Sri Lankan textile & clothing industry is under a tremendous pressure from the national and international stakeholders to improve the environmental performance of the industry (Gamage and Abeysinghe, As demonstrated by recent company initiatives and industry-led coalitions, corporate executives see substantial benefits to be gained from improving social and environmental impacts in their supply chains. The recently launched Sustainable Apparel Coalition, which includes members such as Levi Strauss & Co. and H&M, is creating a common platform for making and measuring supply chain improvements (Maximizing benefits from a sustainable supply chain, 2011).
According to the Carbon Disclosure Supply Chain Report (2011), which assesses the climate change actions of 1,000 suppliers of 57 leading global companies, found that 25 percent of suppliers achieved cost savings linked to emission reduction programs in their supply chains. This has benefited the company, the environment and the people.
Shen (2014), further implies that many fashion firms have differentiated their products by adopting sustainable practices and this has strengthened their brand image with standards such as ISO 14000, in their supply chain. Where this has benefitted their
