Sustainability is the basic requirements of the organizations these days, this is because of the situation that has been arising in the environment because of excessive use of resources and increasing pollution. This is the report that discusses about the sustainability in the very important function of the organization that is supply chain management. The report analyses the various factors that affect the functioning of supply change management. The report initiates with the discussion of the corporate social responsibility and supply chain management along with the sustainability maintenance of the process by the organisation. The major aim of the report is to analyse the different aspect that can be used to maintain the balance between the environment and the functions of the organization by understanding various concept of CSR in supply chain management. This is the report that deals with analysing the benefits of CSR in the supply chain management and the approaches that companies are using in order to integrate the CSR practiced and the supply chain activities in the global supply chain.
Supply chain management is the basic function of the organization that allows the company to deliver the products to the market. It is the whole and soul of the product based companies because if the products has been manufactured in the company than it needs to be reached to the market comfortably. Supply chain of any of the company integrates some of the functions such as manufacturing, operations, purchase, transportation, distribution etc. a supply chain system can only be successful if all the above stated activities run seamlessly in the organization.
Corporate social responsibility can be simply defined as the practices that are conducted by the businesses in order to return back to the society and play their role in making the society and environment sustainable. This is the topic that has gained special attention these days by the practitioners and the researchers as well. This is because it is required to research about the importance of corporate social responsibility in the various functions of the organizations in order to be sustainability. Stakeholder’s theory has been suggested in the article that deals with fulfilling all the responsibilities of the stakeholders.
The findings of the research suggest that there are three major areas where corporate social responsibility makes its focus that are customer’s satisfaction, financial performance and motivation of the employees. In earlier times, the managers and the owners have the perception that the business of business is to do business but the activities of business in these days have changed. Now, the organizations have to face the pressure from the society, stakeholders and the government. Due to all these elements and interference in the businesses corporate social responsibility has got more attention. CSR is now the mandatory strategy for the organizations.
Corporate Social Responsibility: Three Key Approaches
This is the research that deals with various approaches of corporate social responsibility in the organisations that also involves supply chain:
It has been identified that CSR is getting so much of attention of the researchers these days, it has been analysed that it has to face many criticism as well. In terms of criticism, shareholder approach is the one that is facing a lot of issues. As per this theory, the only motive of the organizations should be to earn profits and provide the returns to the shareholders. This theory has been criticized because other stakeholders are not I consideration wit this theory. This leads to development of stakeholder theory.
It is the approach that suggests that it is the responsibility of the firm to fulfil the needs and requirements of each and every stakeholders of the company. It is also required by the company to include the opinion so the multiple stakeholders in terms of making any important decision in the company. As per the research, stakeholders are the group of people who are affected by any of the decision or the activity of the company. This theory balances the motive of organizations to achieve economic profits along with satisfaction of the stakeholders.
Carroll developed the new approach of corporate social responsibility that includes four elements that are legal, ethical, economic and philanthropic. As per the study or the approach, the social responsibility of the business lies in the economic, legal, ethical and philanthropic expectation of the society from the business. As per the above stated theories, activities are considered mandatory for the organizations but this theory suggests that some of the responsibilities of the organization are voluntary that provides better brand image in the market according to their voluntary actions towards the society.
It has been analysed from the research findings that stakeholders approach is the theoretical approach that can used by the companies in supply Chain so as to be sustainable and have better CSR concerns.
Supply chain management system is the very important system for the companies because of the global competition between the companies operating in different countries. Outsourcing the activities and functions, reducing the product life cycle are some of the aspects of supply chain management. Management is the company are giving attention to supply chain competition all over the world. Developing the relationship with the suppliers and other distributors have become very important and a crucial factor for the companies these days. As the focus of the companies is shifting to supply chain management, it has been analysed that the pressure on being sustainable is also increasing. The corporate social responsibility is the concept that is also integrating with the supply chain management in order to be sustainable. Corporate social responsibility is not limited only to one of the functions of the company but is a very broad concept that relates the company and the society as a whole. It is basically defined as the activities conducted by the companies in order to give back to the society. These activities are considered as the responsibility of the organizations.
It is the article or the research that discusses about the corporate group and the pressure of the companies to make their supply chain sustainable and have activities through CSR but it has been analysed that some of the firms does not have the capability to do so and thus imposing such duties on the firms is not correct and ethical.
Corporate social responsibility in global supply chains
There are two main components that are associated with the CSR of the companies. The first component is the relationship between the company and the society and the second component is related to the activities that need to be conducted for the society by the companies. The research has been conducted on the company like IKEA in order to understand the integration of CSR activities in supply chain of the company. IKEA is the Swedish company that deals with practicing CSR activities in its supply chain managements system as well. The first initiative that the company has initiated was to shift its unction from trading to purchasing. This is the function or the process that deals with purchasing the material from fewer suppliers rather that trading with large number of suppliers. This activity leads to formation of better ad strong relationships with some of the suppliers by the company. For this process, the company selects the suppliers on the basis of the quality of the products and the manufacturing processes. The company puts in all its efforts in developing the suppliers to high level. For better understanding of the CSR is SCM, it is required to analyse the staircase model of the company. IWAY is the operation of IKAE to purchase home furnishing and this is the operation that includes CSR practices by the company.
It is the model of the company that includes three step approaches. The first approach or the area that has been discussed in the model is outside environment, the second area is working conditions and the last area is wooden merchandise in case of wooden suppliers. As discussed that there are some conditions to select the suppliers. Some of the conditions are that there should be no child labour, no forced labour and no wood from natural high conservation forests. This is the first level of the model. In order to reach level 2, the suppliers need to fulfil the requirement of the outside environment along with the working conditions. After fulfilling all the requirements the suppliers can reach up to the next level that is level 3. Certification has been given to the suppliers at this level that justifies that the supplier is able to maintain the standards of the environment and policies of the company related to sustainability. At level 4, the supplier’s process has been certified according to the standards of IKEA.
After understanding and reading this case, it has been analysed that practicing CSR in supply chain management requires the organization to put CSR in all the activities of the company, it should not be treated as the separate function but CSR should be reflected in all the functions of the company just like what IKEA is doing by its supply chain management system.
Supply chain and CSR
There are different studies that have been conducted in order to integrate the CSR activities and practices in the supply chain management of the company. Study reveals that there is pressure of stakeholders on the companies in order to conduct the CSR practices. The study was conducted on four types of stakeholders that are consumers, regulation, industry and media. At the same time another author reveals that there are some of the issues in implementing the CSR activities in the supply chain management of the company. Author integrates the different disciplines of the company such as supply chain, HRM and social responsibility. This study considers the people or human factors in the integration practice of CSR in the functions of the company. the study reveals about the complex model that is being used by the companies to implement the CSR activities in supply chain. The study was conducted by assistance of decision makers, manufacturers, suppliers, retailers and consumers. This study aims at analysing the risk factors at the tie of managing the multiple supply chain at global level.
The findings of the research suggest that there are different views of the research regarding CSR in supply chain and thus various practices are conducted by the companies as per their situations and earnings.
Corporate social responsibility
Enhance performance: It has been analysed that CSR in the supply chain system of the company enhances the performance of the same. This is because as in the case of IKEA, it has been analysed that integrating the corporate social responsibility practices in the SCM system of the company has provide additional benefits in order to manage the relationships with the stakeholders of the company.
Retention of the employees: corporate social responsibility integration with the supply chain of the company also helps in retaining the employees, In this also the theory of stakeholders approach of CSR can be implemented because the company with this approach cares for their employees and provide them additional benefits other than the basic salaries.
Positive brand image: Brand image is the factor that is very important for the organizations. Inclusion of CSR in the supply chain of the company helps the company to develop its brand image not only in the market and the customers but also among the stakeholders such as suppliers, distributes etc.
Better relationship: it has been analysed that CRM in the function so the company also benefits of the firm to maintain the relationship with the suppliers and the buyers, this is because in terms of practicing CSR, the company provide extra benefits to the suppliers and the buyers.
It has been analysed from the various studies regarding integration of CSR activities in the supply chain that most of the companies are using the stakeholders approach to facilitate the process. There are three tools that are majorly being used by the companies such as monitoring the supplier performance, supplier requirements and supplier awareness about the corporate social responsibility. It has been identified that it is very much required by the companies to make intelligent decision at the time of selecting the suppliers for their company. This is because only if the suppliers has the knowledge about the CSR activities the only the company can continue with it. If the suppliers of the company are not maintaining the sustainability then it is not possible for the company to maintain the same.
As CSR is very much linked with sustainability, the companies have to engage in some of the sustainable practices that helps the environmental and society to be sustainable. It has been analysed that suppliers are the most important part of supply chain movement and thus it is required by the company to implement such strategies in order to have better suppliers so that their practices can automatically become sustainable. It is required by the company to train their suppliers as they have some responsibilities towards their suppliers under the stakeholder’s approach of corporate social responsibility. It has been suggested that the company also have some role to play towards their supports under CSR and thus they should make efforts in benefiting the suppliers.
Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-Presentations
It is the research that deals with the CSR issues and the difference in the actions of the companies at the different locations. It has been analysed in the report that the companies that operates in different locations or countries have different social responsibilities towards their society, this is because the situation at the society are also very different from each other.
The findings of the report suggests that the company needs to integrate the CSR in different functions such supply chain, HRN etc. as per the norms as per the situation in the country. This is the reason why multinational companies find it difficult to implement CSR activities as they operate at different locations in different countries.
It is the research that discusses about the various aspect of CSR assessment. It has been analysed in the report that assessing the CSR requirements and the activities for the company is very important. It has been analysed from the research that only making investment is some of the social causes is not CSR but it is required by the companies to be sustainable in its practices and should have responsibility towards society in every sense,. Then only the motive of CSR implementation the organizations can be achieved, the whole CSR assessing process needs to be implemented in the organization to demine the target and the KPI’s that are used to compare the set targets and the results of CSR activities of the company.
Exploring the antecedents of logistics social responsibility: A focus on Chinese firms
It is the study that deals with understands of logistics social responsibility. Logistics is the part of supply chain of the organizations that deals with transportation of the products manufactured. The findings of the research suggests that business ethics, pressure from suppliers, government, laws, regulation etc. are the features that results in implementation of CSR at the supply chain or other functions of the company. As far as the theoretical implication of the study is confided, it has been analysed that it is Multifoods in nature. This is because the research findings provide the impact of various key factors in the logistical social responsibility.
Supply chain management system is very important for the organizations. Companies have realised that engaging into the market faster requires the company to have better supply chain management system. This is because of the company has faster supply chain management; it provides the benefit to the company to be in the market for longer time then the competitors. It helps the company to cater the market faster and also to attain the competitive advantage in terms of supplying the products to the market before the competitors. The extensive review research suggest that most of the researchers have also researched about the issues that the companies are facing in terms of integrating the CSR activities in the supply chain management practices. After analysing the overall situation, it has been analysed that supply chain management system of the companies is the type function that needs to be linked with the CSR activities so as to make the sustainable approach towards the society. Suppliers are plying major role in this whole process because they are the most relevant stakeholders in terms of supply chain.
It has been concluded from the report that supply chain management is the function of the organization that is required to be sustainable. This is because; it is the function that generates very much pollution in the environment as using more of the resources. It has been analysed that integration of CSR is the very difficult approach to be conducted but because of the external pressure of the stakeholders, the companies have to implement the strategy that supports the companies to pay back to the society. The findings from the literature review suggest that organizations are under the pressure of the stakeholders to integrate CSR in supply chain practices. This is because the companies have to make better relationship with the stakeholders and thus they have to fulfil the extra requirements of those stakeholders. After analysing the benefits of CSR in supply chain suggest that it reduces the work and enhances the profit generation capability the company as it uses sustainable practices. It also provides opportunity to have better brand image in the market as CSR activities conducted by the organizations are always in the favour of the society.
This is the report that has considered CSR as the most important concept to be involved in the functioning of the companies. It is not only the supply chain management functions that can be associated with the CSR activities but the functions like Human resource and marketing are also under this list.
As far as the future implications of the finding are considered, it has been analysed that the finding can be implied to have better understanding of the CSR activities under supply chain. The organisation can have the idea about the benefits they can achieve in order to integrate CSR in the supply chain management activities of the company. The research findings can also be used to develop the strategies in order to have better relationship with the suppliers and other stakeholders of the company.
Amaeshi, K.M., Osuji, O.K. and Nnodim, P., 2008. Corporate social responsibility in supply chains of global brands: A boundaryless responsibility? Clarifications, exceptions and implications. Journal of Business ethics, 81(1), pp.223-234.
Andersen, M. and Skjoett-Larsen, T., 2009. Corporate social responsibility in global supply chains. Supply chain management: an international journal, 14(2), pp.75-86.
Andersen, M. and Skjoett-Larsen, T., 2009. Corporate social responsibility in global supply chains. Supply chain management: an international journal, 14(2), pp.75-86.
Darnall, N., Jolley, G.J. and Handfield, R., 2008. Environmental management systems and green supply chain management: complements for sustainability?. Business strategy and the environment, 17(1), pp.30-45.
Maignan, I. and Ralston, D.A., 2002. Corporate social responsibility in Europe and the US: Insights from businesses’ self-presentations. Journal of International Business Studies, 33(3), pp.497-514.
Morsing, M. and Schultz, M., 2006. Corporate social responsibility communication: stakeholder information, response and involvement strategies. Business Ethics: A European Review, 15(4), pp.323-338.
Murugesan, P., 2014. Corporate social responsibility in Supply chain management.
Seuring, S. and M?ller, M., 2008. From a literature review to a conceptual framework for sustainable supply chain management. Journal of cleaner production, 16(15), pp.1699-1710.
Weber, M., 2008. The business case for corporate social responsibility: A company-level measurement approach for CSR. European Management Journal, 26(4), pp.247-261.
Windsor, D., 2006. Corporate social responsibility: Three key approaches. Journal of management studies, 43(1), pp.93-114.