Social Responsibility

in
Supply Chain Management
NAVEEN KUMAR
11-MEU-067

What is Social
Responsibility?
A framework of measurable
corporate policies, procedures, and
resulting behavior that are designed
to benefit the workplace and, by
extension, to benefit the individual,
the organization, and the community
in terms of community, diversity,
environment, ethics, financial
responsibility, human right, and
safety. -Institute for Supply

Why Social Responsibility?

New Government Regulation
Take Back Laws
Lead in Computers
Hazardous Waste

Increased Community Awareness

Sweatshops
Child Labor

Continued

Increased Retention of Employees

Increased Productivity and Quality
Enhanced Reputation and Image
Reduces Operating Costs
Creates Long Term Value
Anticipates Challenges
Reduces Risks

7 Principles of Social Responsibility

Community

Provide support and add value to

communities and communities of
your supply chain
Encourage members of supply
chain to add value in their
communities

Ex. Wal-Mart

Diversity

Promote purchasing from and the

development of socially diverse
suppliers
Encourage diversity with in your
organization
Promote diverse employment
practices throughout the supply
chain

Ex. Apples Supply Diversity

Environment

Encourage your own organization

and others to be proactive in
examining opportunities to be
environmentally responsible within
their supply chains
Encourage Environmental
responsibility of your suppliers
Encourage environmental
development within company

Ex. Herman Miller

Ethics

Abide by your organizations code of

conduct
Awareness of ISM principles
Awareness of Ethical SCM conduct

Ex. Nike

Financial Responsibility

Become knowledgeable or, and follow,

applicable financial standards and
requirements
Promote and practice responsible
financial behaviors at all levels of supply
chain
Apply sound financial practices and
ensure transparency in financial dealings

Ex. Enron

Human Rights

Dignified and respectable treatment of

others
Support and respect the protection of
international human rights within the
organizations sphere of influence
Encourage your organization and its
supply chain to avoid complicity in
human or employment rights abuses

Ex. HP

Safety

Promote safe environment for

employees and supply chain

Provide a definition of safe for your

organization

Support continuous development

and diffusion of different safety
practices within your organization
and your suppliers
Ex. HP

Benefits of SR

Customers

They are given preferred status to

those suppliers that have solid policies
and procedures in places around social
responsibility

Investors

Investors are finding that companies

with socially responsible core values,
policies and procedures

Conclusion
Companies that are socially
responsible are ones that comply
with laws and regulations while
increasing their reputation.
This reputation is achieved by
enhancing the well-being of all
stakeholders, increasing profitability
and customer satisfaction.