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Corporate Social Responsibilty in supply chain

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Corporate Social Responsibilty in supply chain
Corporate social responsibility in the supply chain
1. Problem
Despite the long history of CSR, applications of CSR (and sustainability) concepts to supply chains have started to emerge in the last years. Sustainable ‘Supply Chain Management’ is defined as the management of supply chains where all the three dimensions of sustainability namely the economic, the environmental, and the social ones, are taken into account. When sustainable Supply Chain Management principles are adopted, companies are held responsible for the social and environmental impacts arising along the supply chain. They are also demanded to integrate ecological and social aspects into the decisions and actions which involve the supply chains they belong to. Moreover, when supply chain relationships include developing countries, companies are asked to take responsibility for the well-being and performance of small up-stream producers working in those countries. An increased pressure by stakeholders, mainly consumers and non-governmental organizations (NGOs), is placed upon companies specifically to develop management systems across the supply chain. Such systems can also be used to transfer socially responsible behaviours along the supply chain. This stands especially in developing countries, where the countervailing powers of governments and civil society are weak and poverty prevails .To transfer supply chain partners socially responsible behaviours, companies can establish written supplier requirements ,guidelines and requirements where in-social and environmental performance suppliers are asked to pursue are reported; monitor supplier performance, to verify their compliance with the written requirements contribute to suppliers awareness building and training on CSR issues . Businesses need to constantly rely on suppliers to reduce overall costs, while improving the quality of their goods or services. Companies should downgrade the volume of suppliers they do business with, and award



References: 1. Miles M.P., Munilla L.S., 2004, the potential impact of social accountability certification on marketing: A short note, Journal of Business Ethics, 50(1), 1-11. 2. Peloza J., 2006, using corporate social responsibility as insurance for financial performance, California Management Review, 48(2), 52-71. 3. Porter M.E., Kramer M.R., 2006, Strategy and society: The link between competitive advantage and corporate social responsibility, Harvard Business Review, 84(12), 78-92. 4. Roberts S., 2003, Supply chain specific? Understanding the patchy success of ethical sourcing initiatives, Journal of Business Ethics, 44(2), 159-170. 5. Mamic I., 2005, Managing global supply chain: The sports footwear, apparel and retail s 11] Wolters T., 2003, Transforming international product chains into channels of sustainable production. The imperative of sustainable chain management, Greener Management International, 43, 6-13. By, Adithya Prashanth 1 BBM ‘A’ 13SJCCB018

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