Social Responsibility in Supply Chain Management

Social Responsibility
Supply Chain
Nikki Bliven
Lauren Jones
Tara Tjaden
Josh Pine
Nicole Kenney
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.” -ISM
Why SR is becoming an
New Government Regulation
“Take Back” Laws
 Lead in Computers
 Hazardous Waste
Increased Community Awareness
 Child Labor
Why SR is important in SCM
 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
 Institute
for Supply Management
Not-for-Profit association founded in 1915
 Includes more than 40,000 supply
management professionals
 Promotes standards of excellence, research,
promotional activities, and education
 Created
the 7 principles in 2002
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 and Sam’s Club
Promote purchasing from and the
development of socially diverse suppliers
Encourage diversity with in your
Promote diverse employment practices
throughout the supply chain
Ex. Apple’s Supply Diversity Program
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
Abide by your organizations code of
Awareness of ISM principles
Awareness of Ethical SCM conduct
Ex. Nike
Financial Responsibility
Become knowledgeable or, and follow,
applicable financial standards and
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
organization’s sphere of influence
Encourage your organization and its supply
chain to avoid complicity in human or
employment rights abuses
Ex. HP
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
 Ex. HP
Benefits of SR
They are given preferred status to those
suppliers that have solid policies and
procedures in places around social
Investors are finding that companies with
socially responsible core values, policies
and procedures
Steps to Implement a
successful SR Plan
Look Internally
Define Your Code of Conduct
Map the Process
Make Sure Each Relationship Fits With Your
Have a Monitoring Mechanisms/Technology In
Train Your Buyers and Be Consistent in How
They Are Compensated.
Communicate Your Code to Your Suppliers
Companies that are socially responsible
are ones that comply with laws and
regulations while increasing their
 This reputation is achieved by enhancing
the well-being of all stakeholders,
increasing profitability and customer
Boyd, D.; Spekman, R.; Wehane, P. “Corporate Social
Resoponsibility and Global Supply Chain Management: A Normative
Perspective.” (June 2004) Apr 25, 2006.
ISM Committee. “SocialResponsibility and the Supply Management
Profession: A Baseline Study.” Apr. 25, 2004. Apr 25, 2006.
Nieves, Anthony. “Why Social Responsibility Matters.” Sept 2004.
Apr 23, 2006.
Roberts, Julie S. “Inside Supply Management.” May 2004. Apr 25,