CSR and Supply Chain Management: A Comprehensive Analysis Report

This report delves into the critical role of Corporate Social Responsibility (CSR) within supply chain management, emphasizing sustainability and stakeholder engagement. It explores various facets, including the integration of CSR practices, stakeholder theories, and the impact of CSR on supply chain functions such as manufacturing, operations, and distribution. The report discusses different approaches to CSR, such as shareholder and stakeholder approaches, and examines the practical implementation of CSR in global supply chains, using IKEA as a case study. The analysis covers the benefits of CSR in supply chain management, the challenges, and the strategies companies employ to maintain a balance between environmental concerns and organizational functions. It highlights the significance of CSR in enhancing performance and building strong relationships with suppliers and distributors. The report also examines the integration of CSR activities in the supply chain management and the pressure of stakeholders on the companies in order to conduct the CSR practices.

Running head: CSR
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CSR AND SUPPLY CHAIN MANAGEMENT

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Executive summary:
Supply chain management is the process of the function of the company that deals with all the
activities that are required to deliver the products to the customers. It starts with sourcing the raw
material till the delivery of the products this it is the most important function of the company and
needs to be sustainable. This is the report that provides various aspect of supply chain
management in the company and its sustainability.
Table of Contents

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Introduction:...............................................................................................................................................3
Literature research:......................................................................................................................................3
Corporate social responsibility communication: stakeholder information, response and involvement
strategies.................................................................................................................................................3
Corporate Social Responsibility: Three Key Approaches..........................................................................4
Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility?
Clarifications, exceptions and implications..............................................................................................5
Corporate social responsibility in global supply chains............................................................................6
Supply chain and CSR...............................................................................................................................8
Corporate social responsibility................................................................................................................8
Environmental Management Systems and Green Supply Chain Management.......................................9
Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-Presentations...9
The business case for corporate social responsibility: A company-level measurement approach for CSR
...............................................................................................................................................................10
Exploring the antecedents of logistics social responsibility: A focus on Chinese firms..........................10
Arguments:................................................................................................................................................11
Conclusion:...............................................................................................................................................11
References:................................................................................................................................................13

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Introduction:
Sustainability is the basic requirements of the organizations these days, this is because of the
situation that has been arising in the environment because of excessive use of resources and
increasing pollution. This is the report that discusses about the sustainability in the very
important function of the organization that is supply chain management. The report analyses the
various factors that affect the functioning of supply change management. The report initiates
with the discussion of the corporate social responsibility and supply chain management along
with the sustainability maintenance of the process by the organisation. The major aim of the
report is to analyse the different aspect that can be used to maintain the balance between the
environment and the functions of the organization by understanding various concept of CSR in
supply chain management. This is the report that deals with analysing the benefits of CSR in the
supply chain management and the approaches that companies are using in order to integrate the
CSR practiced and the supply chain activities in the global supply chain.
Literature research:
Corporate social responsibility communication: stakeholder information,
response and involvement strategies
Supply chain management is the basic function of the organization that allows the company to
deliver the products to the market. It is the whole and soul of the product based companies
because if the products has been manufactured in the company than it needs to be reached to the
market comfortably. Supply chain of any of the company integrates some of the functions such

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as manufacturing, operations, purchase, transportation, distribution etc. a supply chain system
can only be successful if all the above stated activities run seamlessly in the organization.
.
Corporate social responsibility can be simply defined as the practices that are conducted by the
businesses in order to return back to the society and play their role in making the society and
environment sustainable. This is the topic that has gained special attention these days by the
practitioners and the researchers as well. This is because it is required to research about the
importance of corporate social responsibility in the various functions of the organizations in
order to be sustainability. Stakeholder’s theory has been suggested in the article that deals with
fulfilling all the responsibilities of the stakeholders.
The findings of the research suggest that there are three major areas where corporate social
responsibility makes its focus that are customer’s satisfaction, financial performance and
motivation of the employees. In earlier times, the managers and the owners have the perception
that the business of business is to do business but the activities of business in these days have
changed. Now, the organizations have to face the pressure from the society, stakeholders and the
government. Due to all these elements and interference in the businesses corporate social
responsibility has got more attention. CSR is now the mandatory strategy for the organizations.
Corporate Social Responsibility: Three Key Approaches
This is the research that deals with various approaches of corporate social responsibility in the
organisations that also involves supply chain:
Shareholder approach:
It has been identified that CSR is getting so much of attention of the researchers these days, it
has been analysed that it has to face many criticism as well. In terms of criticism, shareholder
approach is the one that is facing a lot of issues. As per this theory, the only motive of the
organizations should be to earn profits and provide the returns to the shareholders. This theory
has been criticized because other stakeholders are not I consideration wit this theory. This leads
to development of stakeholder theory.

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Stakeholder approach:
It is the approach that suggests that it is the responsibility of the firm to fulfil the needs and
requirements of each and every stakeholders of the company. It is also required by the company
to include the opinion so the multiple stakeholders in terms of making any important decision in
the company. As per the research, stakeholders are the group of people who are affected by any
of the decision or the activity of the company. This theory balances the motive of organizations
to achieve economic profits along with satisfaction of the stakeholders.
Carroll’s pyramid of responsibility or societal view:
Carroll developed the new approach of corporate social responsibility that includes four elements
that are legal, ethical, economic and philanthropic. As per the study or the approach, the social
responsibility of the business lies in the economic, legal, ethical and philanthropic expectation of
the society from the business. As per the above stated theories, activities are considered
mandatory for the organizations but this theory suggests that some of the responsibilities of the
organization are voluntary that provides better brand image in the market according to their
voluntary actions towards the society.
It has been analysed from the research findings that stakeholders approach is the theoretical
approach that can used by the companies in supply Chain so as to be sustainable and have better
CSR concerns.
Corporate Social Responsibility in Supply Chains of Global Brands: A
Boundaryless Responsibility? Clarifications, exceptions and implications
Supply chain management system is the very important system for the companies because of the
global competition between the companies operating in different countries. Outsourcing the
activities and functions, reducing the product life cycle are some of the aspects of supply chain
management. Management is the company are giving attention to supply chain competition all
over the world. Developing the relationship with the suppliers and other distributors have
become very important and a crucial factor for the companies these days. As the focus of the

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companies is shifting to supply chain management, it has been analysed that the pressure on
being sustainable is also increasing. The corporate social responsibility is the concept that is also
integrating with the supply chain management in order to be sustainable. Corporate social
responsibility is not limited only to one of the functions of the company but is a very broad
concept that relates the company and the society as a whole. It is basically defined as the
activities conducted by the companies in order to give back to the society. These activities are
considered as the responsibility of the organizations.
It is the article or the research that discusses about the corporate group and the pressure of the
companies to make their supply chain sustainable and have activities through CSR but it has
been analysed that some of the firms does not have the capability to do so and thus imposing
such duties on the firms is not correct and ethical.
Corporate social responsibility in global supply chains
There are two main components that are associated with the CSR of the companies. The first
component is the relationship between the company and the society and the second component is
related to the activities that need to be conducted for the society by the companies. The research
has been conducted on the company like IKEA in order to understand the integration of CSR
activities in supply chain of the company. IKEA is the Swedish company that deals with
practicing CSR activities in its supply chain managements system as well. The first initiative
that the company has initiated was to shift its unction from trading to purchasing. This is the
function or the process that deals with purchasing the material from fewer suppliers rather that
trading with large number of suppliers. This activity leads to formation of better ad strong
relationships with some of the suppliers by the company. For this process, the company selects
the suppliers on the basis of the quality of the products and the manufacturing processes. The
company puts in all its efforts in developing the suppliers to high level. For better understanding
of the CSR is SCM, it is required to analyse the staircase model of the company. IWAY is the
operation of IKAE to purchase home furnishing and this is the operation that includes CSR
practices by the company.

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IKEA’s staircase model:
It is the model of the company that includes three step approaches. The first approach or the area
that has been discussed in the model is outside environment, the second area is working
conditions and the last area is wooden merchandise in case of wooden suppliers. As discussed
that there are some conditions to select the suppliers. Some of the conditions are that there
should be no child labour, no forced labour and no wood from natural high conservation forests.
This is the first level of the model. In order to reach level 2, the suppliers need to fulfil the
requirement of the outside environment along with the working conditions. After fulfilling all the
requirements the suppliers can reach up to the next level that is level 3. Certification has been
given to the suppliers at this level that justifies that the supplier is able to maintain the standards
of the environment and policies of the company related to sustainability. At level 4, the
supplier’s process has been certified according to the standards of IKEA.

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After understanding and reading this case, it has been analysed that practicing CSR in supply
chain management requires the organization to put CSR in all the activities of the company, it
should not be treated as the separate function but CSR should be reflected in all the functions of
the company just like what IKEA is doing by its supply chain management system.
Supply chain and CSR
There are different studies that have been conducted in order to integrate the CSR activities and
practices in the supply chain management of the company. Study reveals that there is pressure of
stakeholders on the companies in order to conduct the CSR practices. The study was conducted
on four types of stakeholders that are consumers, regulation, industry and media. At the same
time another author reveals that there are some of the issues in implementing the CSR activities
in the supply chain management of the company. Author integrates the different disciplines of
the company such as supply chain, HRM and social responsibility. This study considers the
people or human factors in the integration practice of CSR in the functions of the company. the

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study reveals about the complex model that is being used by the companies to implement the
CSR activities in supply chain. The study was conducted by assistance of decision makers,
manufacturers, suppliers, retailers and consumers. This study aims at analysing the risk factors at
the tie of managing the multiple supply chain at global level.
The findings of the research suggest that there are different views of the research regarding CSR
in supply chain and thus various practices are conducted by the companies as per their situations
and earnings.
Corporate social responsibility
Enhance performance: It has been analysed that CSR in the supply chain system of the company
enhances the performance of the same. This is because as in the case of IKEA, it has been
analysed that integrating the corporate social responsibility practices in the SCM system of the
company has provide additional benefits in order to manage the relationships with the
stakeholders of the company.
Retention of the employees: corporate social responsibility integration with the supply chain of
the company also helps in retaining the employees, In this also the theory of stakeholders
approach of CSR can be implemented because the company with this approach cares for their
employees and provide them additional benefits other than the basic salaries.
Positive brand image: Brand image is the factor that is very important for the organizations.
Inclusion of CSR in the supply chain of the company helps the company to develop its brand
image not only in the market and the customers but also among the stakeholders such as
suppliers, distributes etc.
Better relationship: it has been analysed that CRM in the function so the company also benefits
of the firm to maintain the relationship with the suppliers and the buyers, this is because in terms
of practicing CSR, the company provide extra benefits to the suppliers and the buyers.
Environmental Management Systems and Green Supply Chain Management
It has been analysed from the various studies regarding integration of CSR activities in the
supply chain that most of the companies are using the stakeholders approach to facilitate the
process. There are three tools that are majorly being used by the companies such as monitoring

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the supplier performance, supplier requirements and supplier awareness about the corporate
social responsibility. It has been identified that it is very much required by the companies to
make intelligent decision at the time of selecting the suppliers for their company. This is because
only if the suppliers has the knowledge about the CSR activities the only the company can
continue with it. If the suppliers of the company are not maintaining the sustainability then it is
not possible for the company to maintain the same.
As CSR is very much linked with sustainability, the companies have to engage in some of the
sustainable practices that helps the environmental and society to be sustainable. It has been
analysed that suppliers are the most important part of supply chain movement and thus it is
required by the company to implement such strategies in order to have better suppliers so that
their practices can automatically become sustainable. It is required by the company to train their
suppliers as they have some responsibilities towards their suppliers under the stakeholder’s
approach of corporate social responsibility. It has been suggested that the company also have
some role to play towards their supports under CSR and thus they should make efforts in
benefiting the suppliers.
Corporate Social Responsibility in Europe and the U.S.: Insights from
Businesses' Self-Presentations
It is the research that deals with the CSR issues and the difference in the actions of the
companies at the different locations. It has been analysed in the report that the companies that
operates in different locations or countries have different social responsibilities towards their
society, this is because the situation at the society are also very different from each other.
The findings of the report suggests that the company needs to integrate the CSR in different
functions such supply chain, HRN etc. as per the norms as per the situation in the country. This
is the reason why multinational companies find it difficult to implement CSR activities as they
operate at different locations in different countries.
The business case for corporate social responsibility: A company-level
measurement approach for CSR

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It is the research that discusses about the various aspect of CSR assessment. It has been analysed
in the report that assessing the CSR requirements and the activities for the company is very
important. It has been analysed from the research that only making investment is some of the
social causes is not CSR but it is required by the companies to be sustainable in its practices and
should have responsibility towards society in every sense,. Then only the motive of CSR
implementation the organizations can be achieved, the whole CSR assessing process needs to be
implemented in the organization to demine the target and the KPI’s that are used to compare the
set targets and the results of CSR activities of the company.
Exploring the antecedents of logistics social responsibility: A focus on Chinese
firms
It is the study that deals with understands of logistics social responsibility. Logistics is the part of
supply chain of the organizations that deals with transportation of the products manufactured.
The findings of the research suggests that business ethics, pressure from suppliers, government,
laws, regulation etc. are the features that results in implementation of CSR at the supply chain or
other functions of the company. As far as the theoretical implication of the study is confided, it
has been analysed that it is Multifoods in nature. This is because the research findings provide
the impact of various key factors in the logistical social responsibility.
Arguments:
Supply chain management system is very important for the organizations. Companies have
realised that engaging into the market faster requires the company to have better supply chain
management system. This is because of the company has faster supply chain management; it
provides the benefit to the company to be in the market for longer time then the competitors. It
helps the company to cater the market faster and also to attain the competitive advantage in terms
of supplying the products to the market before the competitors. The extensive review research
suggest that most of the researchers have also researched about the issues that the companies are