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The Strengths, Limitations And Challenges Of Corporate Social Responsibility In The Global Supply Chains

1384 words - 6 pages

Making profit is no longer an important issue in the current market. Rather, ethics in business are becoming highly important for domestic and global companies to meet the expectations of consumers, employees, Non-governmental organizations and other interest groups. As a result to these developments, companies are in competition to adopt good codes of conducts called (CSR) corporate social responsibility which tells consumers and other pressuring groups that a corporate has a good standard of social and environmental system as well as the health and safety procedures (Peterson and Anderson 2006). In the following lines, the article will introduce the definition of (CSR), the strengths, limitations and challenges facing the national and international CSR system, and the impact of these strengths, limitations and challenges on both suppliers and retailers network. The case study will focus on some concerns raised by media and NGOs in the global supply chains.

The online business dictionary defines CSR as “company’s responsibility toward the community and environment (both ecological and social) in which it operates''. In other words, it is the obligations of an organization toward the welfare and interest of both the society and the environment. For example, x company fulfills its obligations toward the environment through reduction of its waste and pollution, by creating social schemes such as contributing to educational and social programs, or by earning adequate profits and maintaining the law in terms of health and safety issues and providing a living wages for employees. These are some of the issues called codes of conduct that organizations allegedly claim implementation of such standards in the global supply chains.

The external and internal atmosphere has a direct impact on the corporate social responsibility for each country according to the culture, policy and law of the land. For instance, CSR, in law abiding countries, is stable and manageable where as in other countries of corrupted laws and pragmatic regimes, is none compliance. In consequence, the local buyer supplier relationship or local organization employees’ relationship in a law abiding country has more benefits and less complications. This is because the buyer supplier relationships are under the umbrella of law which safeguards the codes of conducts between the employers and other stakeholders in the same country (Peterson and Anderson 2006). Consequently, the national companies of good CSR, in law abiding countries, receive more job applications, employees are proud of working for famous brand and good reputable companies, which involve the staff and consumers in the process of training and development (The CSR Blog)

On the other hand, the global buyer supplier relations are criticized because multinational companies are unable to enforce the codes of conduct in the global supply chains. Media and none governmental organizations play an important role to make the...

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