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Global Supply Chain Management Social Responsibility

Agenda

Introduction

Corporate Social Responsibility

Social Responsibility theories

Best Practices of Corporate Social Responsibility

Positive Social Change

References

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Introduction

Corporate social responsibility (CSR) is a broader concept that is not limited to just supply chain management, but the companies’ overall treatment of human beings and the environment. Furthermore, firms that are a part of a supply chain are away under some pressure mainly because customers and stakeholders are aggressively pressing firms to apply corporate social responsibility (CSR) management systems. Firms that incorporate CSR practices can have a positive effect on the economic, environmental, and social aspects. Moreover, in a global business environment, corporate social responsibility has become a clear priority for many firms. With a clear focus on social responsibility, firms can develop operations that practice environmental sustainability and (CSR) to improve their competitive advantage (Wang et al., 2020). Managers are urged to create efficient corporate social responsibility that helps a firm maintain sustainability (Liping et al., 2020).

Corporate Social Responsibility

Shareholders

Employees

Consumers

Government

human resources

According to Jokar & Hosseini (2020), suggested implementing CSR to enhance a firm’s competitive advantage in the marketplace. Moreover, incorporating CSR activities can improve the productivity of firms (Jokar & Hosseini). According to Serdijn et al. (2020), they pointed out the significance of employing CSR policies can help firms in various ways, when firms apply plans of proper CSR policies. Firms are becoming more accustomed to implementing corporate social responsibility (CSR) to improve their relationships with internal and external actors. Firms are also embracing the fact that CSR activities can optimize profits while having a positive impact on the planet and society at large (Letizia, & Hendrikse, 2016). Firms are volunteering to incorporate responsibility into their activities to improve their goodwill can increase significantly and thus attract new investors (Jokar, & Hosseini; Sudolska et al., 2020). CSR standards are fundamental rules that determine what is considered responsible behavior by firms. Companies can also apply CSR to promote fair and safe working conditions, the social and environmental implications of operations, and the establishment of equitable transactions fostering economic development as well as increased investments in human resources consumers, government and stakeholders (Fransen et al., 2019; Sudolska et al., 2020).

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Social Responsibility Theories

Social Exchange Theory

Theory of Reasoned Action

Stakeholder Theory

Wei et al. (2019), explain both Social Exchange Theory and Theory of Reasoned Action. Social exchange theory was derived from behavioral psychology and the exchange relationship of utilitarianism in economics. Social Exchange Theory explores the overall social organization structure from the relationship between human behavior and interaction. Whereas, Theory of Reasoned Action suggests that a person's actual behavior is affected by his behavioral intention. These behaviors are highly related. (Wei et al., 2019). According to Freda (2017), Stakeholder theory is one of the most widely used methods by CSR scholars. Moreover, stakeholder theory can be applied to CRS policies that will place a firm in position with other firms to continue operations without facing any objections.

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Best Practices of Corporate Social Responsibility

Corporate citizenship

Sustainability Issues Mapping

Stakeholder Engagement

Corporate philanthropy

Firms consider corporate citizenship as a strategic anchor for the sustainability of an organization’s operations. Creating corporate citizenship within a firm helps create socially responsible policies, and processes that firms benefit from by minimizing the negative impact of business operations on environment and communities, but also by satisfying primary stakeholders’ (Lin & Liu, 2019). Manufacturing facilities that develop effective mapping systems can improve their operational capabilities efficiently by identifying critical operations that affect the overall production, quality, and delivery of the facility. Once the manufacturing facility identifies these operations, they can then begin to examine them individually through a mapping process that may generate useful analytical data (Mustafa & Cheng, 2017). Stakeholder Engagement theory can be applied instrumentally to perform outcomes intended for a firm with highly ethical relationships with stakeholders, characterized by high levels of trust, cooperation, and information sharing (Jones et al., 2018). According to Jones et al. (2018), stakeholder theory is about understanding the relationship between firms and their stakeholders, as well as some of the performance outcomes of these relationships. Corporate philanthropy plays an essential role in nonprofit organizations that rely on corporate philanthropy (Peterson, 2018). The need for a charitable contribution is likely to be influenced by the current economic conditions. A downturn in the economy typically results in severe budget limitations for many nonprofit organizations due to less financial support from various sources such as the government and individual contributors (Peterson).

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Positive Social Change

Society

Environmental

Economic

Economy

Customers

Human Rights and Labor

Firms are adopting CRS activities centered around optimizing profits for the firm while ensuring a positive impact on the planet and the society at large (Letizia & Hendrikse, 2016). Serdijn et al. (2020), expressed from a globalization perspective, there is growing interest in the role firms play in the economic development of developing countries to improve their economy and social modernization. According to Wang et al. (2020), “Consumers prefer lower sales prices and higher effective CSR investment levels.” The manufacturers and retailers are integrating CSR practices into their supply chain to ensure that they produce a good product. According to Serdijn et al. (2020), “CSR addresses environmental, human rights and labor implications of globally produced goods and discusses the interrelation between the mode of organizing production across borders (p.4).”

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References

Fransen, L., Kolk, A. & Rivera-Santos, M. (2019), "The multiplicity of international corporate social

responsibility standards: Implications for global value chain governance,” Multinational

Business Review, 27(4), pp. 397-426. https://doi.10.1108/MBR-08-2019-0083

Freda M. (2017). The Influence of Self-Regulation and Stakeholder Theories on Corporate Social

Responsibility (CSR). International Journal of Multicultural and Multireligious Understanding,

4(3), 29–34. https://doi./10.18415/ijmmu.v4i3.82

Jokar, A., & Hosseini-Motlagh, S.-M. (2020). Simultaneous coordination of order quantity

and corporate social responsibility in a two-Echelon supply chain: A combined

contract approach. Journal of the Operational Research Society, 71(1), 69–84.

https://doi.10.1080/01605682.2018.1524349

References

Jones, T. M., Harrison, J. S., & Felps, W. (2018). How Applying Instrumental

Stakeholder Theory Can Provide Sustainable Competitive Advantage.

Academy of Management Review, 43(3), 371–391.

https://doi.10.5465/amr.2016.0111

Letizia, P., & Hendrikse, G. (2016). Supply Chain Structure Incentives for Corporate Social

Responsibility: An Incomplete Contracting Analysis. Production and operations

management, 25(11), 1919–1941. https://doi.10.1111/poms.12585

Lin, Y.-T., & Liu, N.-C. (2019). Corporate Citizenship and Employee Outcomes: Does a

High-Commitment Work System Matter? Journal of Business Ethics, 156(4),

1079–1097. https://doi.10.1007/s10551-017-3632-1

References

Liping Song, Yingluo Yan, & Fengmin Yao. (2020). Closed-Loop Supply Chain Models Considering

Government Subsidy and Corporate Social Responsibility Investment. Sustainability, 12(5),

2045. https://doi.10.3390/su12052045

Mustafa, K., & Cheng, K. (2017). Improving Production Changeovers and the Optimization:

A Simulation Based Virtual Process Approach and Its Application Perspectives.

Procedia Manufacturing, 11, 2042–2050. https://doi.10.1016/j.promfg.2017.07.356

Peterson, D.K. (2018), "Enhancing corporate reputation through corporate

philanthropy", Journal of Strategy and Management, 11(1), pp. 18-32.

https://doi.10.1108/JSMA-10-2016-0068

References

Serdijn, M., Kolk, A. & Fransen, L. (2020), "Uncovering missing links in global value chain

research – and implications for corporate social responsibility and international

business,” critical perspectives on international business, Vol. ahead-of-print No.

ahead-of-print. https://doi.10.1108/cpoib-01-2020-0002

Sudolska, A., Drabkowska-Skarba, M., Łapińska, J., Kądzielawski, G., & Dziuba, R. (2020).

Exploring corporate social responsibility practices in the clothing industry: The

case of Polish and British companies. Fibres & Textiles in Eastern Europe.

Wang, Z., Wang, M., & Liu, W. (2020). To introduce competition or not to introduce competition:

An analysis of corporate social responsibility investment collaboration in a two-echelon

supply chain. Transportation Research: Part E, 133, N.PAG.

https://doi.10.1016/j.tre.2019.11.006

References

Wei, C.-L., Chang, Y.-C., Wang, W.-X., Chou, H.-M., & Chen, K.-J. (2019). Factors that Influence Sharing

Behaviors in Sharing Economy Based on the Theory of Social Capital and Social Exchange:

Example of Industrial Engineering and Engineering Management (IEEM), 2019 IEEE

International Conference On, 659–663. https://doi.10.1109/IEEM44572.2019.8978908