How Should They Practice CSR Activities Efficiently Commerce Essay

How Should They Practice CSR Activities Efficiently Commerce EssayThe current concentrate on of corporate fond righteousness for corporations is no longer on how they machine CSR activities, but on how should they practice CSR activities efficiently and stiffly (Roberts, 2003). During the last troika decades, more than and more companies, especially the large multinational corporations, have implemented and stria up series of voluntary codes of conduct, formulated sustainability strategies and also announced and implemented environmental annual reports to engage in corporate affectionate responsibilities. Indeed umteen multinational corporations have made efforts to engage in their corporate sociable responsibility by dealing with environmental and tender issues in world(prenominal) tack arrange. However, there is still a gap amongst the desirability of lend twine sustainability in theory and the implementation of sustainability in practice (Bowen et al., 2001 Ander sen Skjoett-Larsen, 2009).In discussing the varied aspects of corporate affable responsibility unmatched issue necessitates to be particularly pointed out that this field of view can non cover e really single aspect of corporate mixer responsibility practices in equipment casualty of definition, application as strong as trouble aspects. After all, corporate genial responsibility cannot be advantageously disentangled from the companys processs. Since CSR is a complex concept and issue, it is embedded inwardly the organisation from top to bottom and also across the global span of operations.This study heighten on the key issues cerebrate to CSR practices in the global confer manacles.Research questions and purposeThis study is going to identify a conceptual framework for mind and analysing CSR practices in global communicate chemical orbits. The purpose of this study is going to address following research questionsUnderstanding corporate social responsibility and fork up chemical chains in the global context.How is corporate social responsibility related to and applied in global supply chains?How atomic number 18 corporate social responsibility activities and practices implemented and managed in a specific chosen multinational corporation- Primark?Structure of this studyChapter two explains the broad literature review on corporate social responsibility and supply chain management. In chapter three, methodology and data collection impart be explained. Chapter four contains a theoretical framework of globalisation, corporate social responsibility as a challenge of lineage line in a global context, supply chain in the globalisation, corporate social responsibility in global supply chains as well as the penurys of implementing CSR practices inside supply chains. And how these concepts argon interrelated will be also discussed in this section. Chapter basketball team will admit empirical findings from a case study-Primark. Chapter six includes analysis of this study. Chapter seven will consist with conclusions, discussions, and limitations of this study as well as the pedantic and practical recommendations. Chapter eight is brinyly followed by a reference list and the appendixes. The overall organize of this study is showing in the Figure 1.Figure 1. The structure of this studyLiterature reviewThe main purpose of this section is going to provide a theoretical framework. It basically identifies the literature achievements and some current social issues that organisations confront with. Firstly, this section is going to explain three different concepts respectively including globalisation, corporate social responsibility and supply chain management. Then this section will explain how the process of globalisation influences the corporate social responsibility and global supply chains. This section is going to summarise the main motivations of implementing CSR practices in the global supply chains. An interrelated relationship mingled with these concepts will also be identify.GlobalisationGlobalisation has be hump a common social phenomenon. Hines and Bruce (2007) provide a commentary of globalisation as the slipway in which merchandises have converged byout the world and the ways in which production poles have shifted geographically to satisfy global consumers. impose (1995, p. 353) also prefaces the definition of globalisation from the economic point of view as the increase internationalisation of the production, distribution and marketing of goods and services. Some faculty member researches argue that unity motivation of globalisation could be the deliberate political decisions (Scherer Palazzo, 2009), supported by technological, social and economic development. The growing cross- area and cross- country transfer of resources in end points of assets, capital as well as k outrightledge, also foster the progress of globalisation (Scherer Palazzo, 2009).Along with globalisation, multilateral agreements and intergovernmental organisations are progressively developed during the last three decades to regulate and maintain growth, stability and a minimum standardised of living in the context of globalisation. The members of these intergovernmental organisations all agree to secure and maintain fair and valet de chambre working conditions in home countries and countries where they have economic relationships with (Crane, Matten Spence, 2008). Although there are many agreements, regulations and intergovernmental organisations, in this section is going to discuss three of them which are close to related to this study, including International fag out Organisation (ILO), General Agreement on Tariffs and Trade (GATT) and also International Non-Governmental Organisations (NGO). The following portion is going to give a brief introduction and description of these multilateral agreements and intergovernmental organisations, identifying their potential to regulate g lobal standards for all nation states as well as multinational corporations.International Labour Organisation (ILO)General Agreement on Tariffs and Trade (GATT)The General Agreement on Tariffs and Trade (GATT) developed at the end of WWII leads to the breakdown of betray barriers and encourages cross-b stray trade and investments (Scherer Palazzo, 2009).International Non-Governmental Organisations (NGO)International Non-Governmental Organisations (NGO) are non-official, non-profit, professional organisations with a distinctive legal character, focusing on engaging and maintaining public welfare (Crane, Matten Spence, 2008 Clarke, 1998). The main public issues NGOs focus on are human rights, gender discrimination, social welfare, working and living conditions, the environmental issues, agricultural development and so on (Clarke, 1998). NGOs play an important authority in working with national governments, international organisations as well as multinational corporations by using the net work of members to collect information related to specific issues (Ottaway, 2001). Many multinational corporations increasing confront with pressures from NGOs, to govern their behaviours based on various international agreements and codes of conduct. However, empirical studies and reviews suggest a link between corporate social responsibility, NGOs, and organisational performance (Doh Guay, 2004). As long as the multinational corporations believe those codes that NGOs provide could plough uniform standard in their industry, they are spontaneous to obey and agree those codes to gain global first mover competitive advantages which could improve strength and performance as well as build collateral image in the long term. Researches in the role of NGOs in development of global corporate responsibility focus on the increasing growth in NGO influence as well as the involvement of government and corporations (Doh Guay, 2004).Corporate social responsibilityDefinitions of corp orate social responsibilityCorporate social responsibility is a debated subject and study concept in contemporary business and academia. It is also regarded as an important topic for research and worth for study (Burton Goldsby, 2009). Since the beliefs and cognitions about the relationship between corporations and larger society vary with the relevant issues of the day, there is lack of strong consensus on a definition for CSR. The most ordinarily cited definition is described by Archie Carroll (1979) as the social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organisations at a given point in time. Whats more, Matten and moonshine (2004) offer further description of CSR as a cluster concept which overlaps with such concepts as business ethics, corporate philanthropy, corporate citizenship, sustainability, and environmental responsibility. It is a high-octane and contestable concept that is embedded in eac h social, political, economic and institutional context.(Crane, Matten Spence, 2008)Maignan and Ferrell (2004) develop a brief overview of conceptualisation of corporate social responsibility by summarising four different perspectives on CSR.The first perspective stated by Maignan and Ferrell (2004) is to view CSR as social obligation. Bowen (1953) states that organisations should take social obligations to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in harm of the objectives and values of society. Whats more, in the later literatures, Carroll (1979) distinguished social responsibility into a pyramid (Shown in the Figure 2.) with four different layers which are economic, legal, ethical and philanthropic responsibilities. Companies should make profit with obeying the law, as well as act ethically in the business activities. Philanthropic responsibility is about corporate actions in response to societys expectations at the s ame time engaging in promoting goodwill or welfare (Gronvius Lemborg, 2009 Maas, 2010). other perspective of corporate social responsibility is to view as stakeholder obligation (Maignan Ferrell, 2004). Stakeholder trust has a significant impact on the contribution to the long term success of the corporation. It is important for the organisation to take stakeholders interests into account. A stakeholder is defined by Freeman (198446) as any group or individual who can affect, or is affect by, the achievements of organisation objectives. Henriques and Sadorky (1999) identify four main stakeholders of organisations which are organisational stakeholders (including employees, customers, shareholders and suppliers), community stakeholders (including local anaesthetic residents and special interest groups), regulatory stakeholders (such as municipalities, regulatory systems and governments) as well as media stakeholders (Chung, 2005). Basically, the corporation has the responsibility and obligations to meet the rights and interests of all legitimate stakeholders, simultaneously, stakeholders place ethical expectations on business because they have a reciprocal relationship. However, how to balance the competing interests of these stakeholders is a crucial issue to organisations. The corporation has the responsibility for balancing delicately the multiple claims of conflicting stakeholders. However, the complex stakeholder terms make the decision-making process more complicated. It is also a major CSR challenge that companies could face during managing global supply chains.The third perspective mentioned by Maignan and Ferrell (2004) is CSR as ethics driven which implies that CSR practices are driven by the self-interests of a company. However, according to Jones (1995), when CSR is viewed as ethical driven, there is a lack of normative criteria to evaluate whether the business practices and activities should be considered as socially responsible. Thus CSR should be viewed as a self-developed regulatory mechanism based on its own interest independent of stakeholders obligations.The forth perspective stated by Maignan and Ferrell (2004) is that CSR is managerial processes. Under this perspective, Ackerman (1975) identified three main activities of corporate social responsiveness including monitoring and assessing environmental conditions, attending to stakeholder demands, designing plans and policies aimed at enhancing the firms positive impacts. Whats more Wartick and Cochran (1985) as well as Wood (1991) pointed out that issues management and environmental assessment could contribute to achieve a proactive social responsibility stance.Figure 2. Carrolls (1991) pyramid of corporate social responsibilityBy summarising the literatures of corporate social responsibility, there are two main characteristics of corporate social responsibility (Maas, 2010 Andersen Skjoett-Larsen, 2009 Crane, Matten Spence, 2008). The first one is the voluntary a ctivities of companies in the realm of social and environmental issues that go beyond the law. Corporate social responsibility offers a more voluntary approach to address the role of corporations in society and manage externalities coherently, comprehensively and professionally. Another core characteristic is the relationship between business and larger society. Corporate social responsibility includes a wider status of interests and impacts of different stakeholders rather than solely shareholders. The group of stakeholders and interest groups include customers, suppliers, employees, NGOS, the local community re beatives, etc. The evaluation of capabilities and competences of companies is not just limited in a matter of making profits.Corporate social responsibility a global challengeIn a global context of corporate social responsibility, the literature on the study concept, both academic and practitioner, is wide and considerably large (Crane, Matten Spence, 2008). Various inte rnational institutions have set up guidelines and standards to make sure companies stick to certain rules of conducts. Corporations pursue growth and market share through globalisation, they have confronted with several challenges that may limit the ability of gaining potential profits and organisational growth. These challenges may come from government regulations, environmental restrictions, tariffs and trade barriers. Crane, Matten and Spence (2008) conclude three main challenges for CSR in a global context.The first one is building new social capacities. In a global context of corporate social responsibility, the social meaning and definition differ in different regions of the globe. Thus, managing corporate social responsibility is not just enforced by the companies themselves and the legal framework issued by national government, it is also essential to consider and acknowledge the specific global standards and regional authentic circumstances in which corporations practice and manage CSR. This current issue requires companies establish new roles or even found new operational department beyond their handed-down expertise to develop partnerships with NGOs and local governments to address these issues.The second challenge mentioned by Crane, Matten and Spence (2008) is the involvement in rule-making. Under the nature of global governance, in a certain extent, corporations are involved in setting the rules of trade agreements, standardisation efforts as well as economic agreements. The participation in rule-making process makes corporations become the rule-maker as well as the rule-taker which could better implement and observe the regulations and standards they have agreed upon.The third challenge for CSR is broader accountability (Crane, Matten Spence, 2008). The accountabilities of CSR involve human rights, health electric charge and education, global poverty and environmental issues such as global warming. At the global level, the accountabilities of CSR become more complex, broader and delicate. As mentioned above, it cannot merely focus on the local social and environmental issues, corporations also have responsibility and obligation on the countries they have economic relations with.However, more and more companies see corporate social responsibility as an opportunity rather than a threat in the global context, in order to increase market share, innovative power and employee motivation as well as hail advantages, Corporate social responsibility in a global context is no longer only on the agenda of large, multinational corporations, some small and medium enterprises which are involved in the network of international suppliers and customers also hold accountable for certain activities within the supply chains (Cramer, 2006).The way in which CSR is institutionalised, harmonised and practiced in the global context is fluctuating.Review of different motivations for CSRSupply chain managementHandfield and Nichols (1999) prese nt a definition and description of supply chain as the supply chain encompasses all activities associated with the flow and transformation of goods from the raw material stage through to the end-user, as well as the associated information flows. Material and information flow both up and down the supply chain. Supply chain management (SCM) is the integrating of these activities through improved supply chain relationships to achieve a sustainable competitive advantage (Handfield Nichols, 1999, p.2 Cited in ). The supply chain management consists with various dependent activities from sourcing and purchasing, production, distribution and transportation as well as sales that operate and manufacture in both the developing and developed countries around the globe (Chung, 2005) , as shown in the Figure 3.Figure 3. Key activities in the supply chain management cycle (Chung, 2005) QQ20120820202923.pngThroughout the 1970s and 1980s, the practice journals in the apparel sector developed th e term pipeline to explain the whole process of raw materials through manufacturing processes to the final customer (KSA, 1987 Hunter, 1990 Hunter et al., 1993 Hunter and Valentino, 1995 Hines, 2007). More recently, demand chains and value networks (Hines, 2007) are used to describe supply chains which emphases the role of customers and adopts the trend of rapid changing customer demands. Figure 4 shows the supply chain process cycles.Figure 4. Supply chain process cycles (Hines, 2004 Cited in Hines Bruce, 2007)There are numbers of different perspectives on the development of the concept of supply chain management. Based on the analysis of Hines (2007), there are mainly four perspectives of managing supply chains. First one is to focus on improving productivity internally of supply chain management. The second perspective extends the first concern with productivity to improve operations. The third wave, which was developed in the transport and distribution literature and now is syn thesised in the logistics literature, mainly concerned with moving goods efficiently. The forth and latest perspective emphases the important role played by customers within the demand chain. The development of supply chain increases the complexity and flexibility requiring organisations to deal with. During the last decades, active responsiveness to the supply chain has is becoming more and more important. Table 1 shows the main shift in analytic focus of supply chain over time (Hines Bruce, 2007).Table 1. Analytic focusFrom (pre-1990)To (post-1990 to present)Predominantly internal focus trading operations (Internal efficiency)Exchange/transactional focusFunctional processes (silo mentality?)Cost efficiency (inputs/outputs)Physical processesProduct role (only major concern)Simple (e.g. dynamic structures and relationships)Traditional linear supply chainsInventory managementPredominantly external (dyadic, chain, network)Strategies (external market orientation)Relationship/structur e focusIntegrationValue added (outputs/inputs)Financial, informational and virtual processesService quality and derive quality approachesComplex structures (e.g. networks)Digital supply chains (value nets)Information and customer serviceSource Hines, 2004, Purchasing and supply chain literature from 1930s to present day (Cited in Hines Bruce, 2007).Until recently, most of the literatures and practice of supply chain management emphases on issues that relate to cost-efficiency of supply chains, relationships with supply chain partners, supply chain strategies, customer services as well as different types of supply chains. However, the increasing sourcing organisational activities and building partnership in developing countries as well as the increasing concern about environmental and social issues has led new social concepts which is normally recognised as sustainable supply chains, aiming at improving and protect the companies and employees within the supply networks. The focus o f sustainable supply is not only on the local optimisation of environmental factors, but also on the consideration of the entire supply chain processes. During the last decade, the study concept of supply chain sustainability has been received great interest in both academia and the practitioners (Hassini, Surti Searcy, 2012). Since companies are suffering great pressures from various stakeholders, particularly from government regulators, non-government organisations (NGOs), as well as the global competition, a large number of companies have engaged in the commitment to corporate social responsibility practices. Hassini, Surti and Searcy (2012) provide a definition about sustainable supply chain management by summarising different academic and social concepts including business sustainability (Crane Matten, 2007) and the triple bottom line (Elkington, 1997), as the management of supply chain operations, resources, information, and funds in order to maximise the supply chain profi tability while at the same time minimising the environmental impacts and maximising the social well-being. These definition emphases the importance of balancing and satisfying conflicting interests of multiple stakeholders.By analysing and summaries the literatures on the supply chain management and sustainable supply chains, there is a lack of appropriate and systematic performance measures and framework for supply chains which makes it difficult to evaluating the sustainability initiatives in supply chain management (Lehtinen Ahola, 2010 Hassini, Surti Searcy, 2012).The internationalisation of supply chainsThe process of globalisation creates competitive pressures for vesture and textile producers to search for ways to lower production be, especially for the fast fashion, which is required quick respond to customer demands, high seasonal variation and creative design. Organisations improve and take efficiency measures from internal to a single organisation or network of organi sations locked in a continuous supply chain. The second way that organisations to lower their production costs is to search lower cost sources of supply throughout the globe in order to find locations where conditions are more favourable than in the home market (Hines and Bruce, 2007). This process will create the global supply chains.Under conditions of globalisation, products are no longer manufactured and produced in just one country, but knowing and produced in different production sites in various locations around the world which is a result of global investment (Homann, Koslowski Luetge, 2007). Globalisation has two facets which are globalisation of production and globalisation of markets, which means globalisation is present at the production stage as well as the retail stage. Primary products are increasingly manufactured in different production sites around the globe to benefit from lower labour costs, raw materials as well as the lower cost of transportation, which could increase the degree of divergence of labour. Homann, Koslowski and Luetge (2007) illustrate that division of labour could take place when manufacturers of primary products at different locations. Globalisation accelerates the process of international division of labour both in vertical integration and in the supply chain.Apparel manufacture is one of the areas that globalisation has offered significant cost reduction opportunities, overdue to high labour content and cost- effective to transport. As a result of globalisation, both multinational companies and local manufacturers in the apparel industry have benefited staggeringly from cost reduction. Based on the statement of Cramer (2006), the globalisation of supply chains has led to heavy social criticism, especially when companies using child labour or working in countries that violate fundamental human rights, which damages companies reputation. During the last decade, one of the key business trends resulted by globalisation i s the outsourcing key business and operation activities to suppliers and subcontractors. Based on the description of GEMI (2001), this trend has made certain suppliers more critical, extends liability throughout the lifecycle, and the result is a significant shift of corporate environmental, health and safety risks and opportunities off site As a consequence, some of those business risks and opportunities may become Procurements responsibility (Cited in Roberts, 2003)Based on the statement of Dicken (1998, p. 283), the textiles and clothing industries are the first manufacturing industries which are shifted by globalisation. The phenomenon of globalisation has shaped the structure, strategies and consequences in the textile and clothing industries. Global shifts in these industries also increase the trade tensions between developed and developing world (Hines Bruce, 2007). During the last three decades, many corporations restructure organisations and outsource many functional and t raditional activities to the companies in the developing countries. Efficient and effective supply chains are essential to manage customer demand and brand operations, especially for the high-changeable fashion and apparel industry. The reasons that organisations pay attention on the supply chain management are due to the trend of globalisation, the reducing time of pushing into the market, as well as the rising standard of customer demands. globalisation has significantly changed the international market. Traditional supply chain is moving to the direction of the development of the globally integrated supply chain, becoming a cross-functional and cross-regional supply chain. sustainable supply chain management plays an important role in maintaining brand integrity, ensuring business continuity and controlling operating costs. The main purpose to promote sustainable supply chain is to build long-term environmental, social and economic value. By continuing construction of the supply chain, companies could protect their long-term capabilities. The process of globalisation is one major reason of increasing reliance of corporations on suppliers and sub-suppliers (Welford, 2002). Thus the supply chain is more and more complex and international. This is what makes global supply chains within fashion markets and fashion marketing worth to study.The traditional supply chain management (SCM) is the process of the business operations in terms of supply chain planning, execution and control in order to maximise its efficiency. In general, the whole process of supply chain management could range from raw material acquisition, components, manufacture, logistics, quality services to pre-retail services including labelling and packaging (Hines Bruce, 2007). In order to reduce costs and improve efficiency, most of modern multinational corporations choose supply chain outsourcing services, namely, as the identity of the buyers chooses the most cost-effective suppliers (inclu ding foundries and logistics companies, etc.) to complete their production as well as enhance the marginal benefit. However, to maximise the efficiency as a prerequisite, the traditional supply chain management ignores the social and environmental factors, and therefore in the past decades, corporate social responsibility in supply chain management became a new management philosophy in many organisations. Therefore how to better manage the supply chain performance and enhance their capacity is very worthy of study.Many well-known multinational enterprises, taking the cost of production into account, come to the Asian countries like China, India, etc., to corporate with local companies to manufacture their products. Since the majority of suppliers in developing countries are labour-intensive enterprises, and the relevant enforcement of laws and regulations needs to be improved, therefore working conditions are unsatisfactory. Frequent overtime, unpaid wages, under minimum wage standa rd happen consistently. Along with media exposure and NGOs fierce criticism of sweatshops in especially Europe and the United States as well as other countries, multinational enterprises are beginning to require suppliers to comply with the Code of Conduct (CoC) and the relevant laws and regulations in the location of the suppliers (environmental protection law, labour law, etc.) to conduct the labour and environmental requirements and policies. Subsequently a lot of industrial standards, such as the garment industry, WRAP, EICC of electronic industry, the ICTI of the toy industry, and chemical industrys Responsible Care. In order to ensure the performance of suppliers in terms of labour and environment performance, internal staff or third-party would be sent to the supplier factories for review and evaluation. If the quality and feature of products are dissatisfaction, the suppliers will be asked to provide assistance to make improvements or even cancel the order.Corporate social r esponsibility in supply chain managementFor suppliers, the meaning and definition of CSR is comparatively narrow, is merely about how to meet customers needs, achieve social and environmental compliance, such as timely payment of wages, make sure working hours, in order to maintain operational order and ensure efficiency and effectiveness. CSR for the majority of suppliers is only about law-abiding, however, they do not properly understand the benefits of the implementation of CSR, and thus they just implement the so-called CSR improvement involuntarily.Despite the long history of CSR, applications of CSR concepts to supply chain management have only emerged in the last few years. sustainable supply chain management is about management of supply chains where all the three dimensions of sustainability, in terms of the economic, environmental and social sustainability, are taken into account. Supply chain relationships have a critical impact in a global world. In order to advantage f rom low labour wages, more and more companies frequently outsource part of or even whole business activities to companies in developing countries. When sustainable SCM principles are adopted, the companies are accountable for the social and environmental impacts along the supply chain, and are compelled to integrate ecological and social aspects into their decisions and actions along their supply chains. When supply chain relationships involve developing countries, companies also need to take responsibility for the well-being and performance of small upstream producers that work in those countries. The Figure 5 shows some CSR issues that companies may confront with in managing their global supply chains.Figure 5. Examples of CSR issues in supply chains (Neergaard and Pedersen, 2005, p. 103 Cited in Pedersen Andersen, 2006)Therefore, helping supplier social responsibility should focus on how to make suppliers understand the business value of CSR, how to reflect the return on invest