Corporate Social Responsibility : Supply Chain to Value Chain

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From supply chains to value chains: A spotlight on CSR
Malika Bhandarkar and Tarcisio Alvarez-Rivero* 1. Introduction
Corporate social responsibility (CSR)1 has become a hot topic in boardrooms across the world. Changes in corporate value systems are being driven by pressures from different actors, including governments, consumers, non-governmental organizations (NGOs) and institutional investors (diagram 1). Multinational corporations (MNCs) have operations spread across the globe, relying on both foreign affiliates and arm’s-length suppliers arrayed along global supply chains, many of which encompass developing countries. What then does the growing CSR movement mean for developing country producers? The chapter addresses this question.

Diagram 1
Institutional Investor
Tier I Tier II Tie r III

NonGovernmental Organization Multinational Corporation Consumer Supply Chain, consisting of:

Government

CSR has relevance to many facets of a corporation’s operations. Strong CSR policies can help to recruit the right people for the job, keep attrition rates low by promoting a “feel good” quotient, improve corporate image, prepare for future regulation, empower “soft” laws (Vogel, 2005, p.162), appease green customers, and convince institutional investors that the corporation is following sustainable practices that positively impact the bottom line.
* Policy Integration and Analysis Branch, Division for Sustainable Development, UNDESA, United Nations, New York. The views expressed in this document are those of the authors and do not necessarily coincide with those of the organization to which they are affiliated.

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Managers are being asked to raise profits but in more socially and environmentally responsible ways. The bottom line continues to be the baseline for measuring corporate success. CSR activities must be seen as providing a measure of shareholder value (e.g., reputation, goodwill) which

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