Social Responsibility in Supply Chain Management

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Social ResponsibilityinSupply Chain Management

• Nikki Bliven
• Lauren Jones
• Tara Tjaden
• Josh Pine
• Nicole Kenney

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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

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Why SR is becoming an Issue

• New Government Regulation
• Take Back Laws
• Lead in Computers
• Hazardous Waste
• Increased Community Awareness
• Sweatshops
• Child Labor

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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

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7 Principles of Social Responsibility

• Institute for Supply Management (ISM)
• 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

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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 and Sams Club

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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 Program

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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

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Ethics

• Abide by your organizations code of conduct
• Awareness of ISM principles
• Awareness of Ethical SCM conduct
• Ex. Nike

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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

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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

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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

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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

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Steps to Implement a successful SR Plan

• Look Internally
• Define Your Code of Conduct
• Map the Process
• Make Sure Each Relationship Fits With Your
  Strategy
• Have a Monitoring Mechanisms/Technology In Place
• Train Your Buyers and Be Consistent in How They
  Are Compensated.
• Communicate Your Code to Your Suppliers

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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.

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Sources

• Apple.com
• Boyd, D. Spekman, R. Wehane, P. Corporate
  Social Resoponsibility and Global Supply Chain
  Management A Normative Perspective. (June 2004)
  Apr 25, 2006. Http//sscn.com/abstract655223)
• HermanMiller.com
• HP.com
• ISM Committee. SocialResponsibility and the
  Supply Management Profession A Baseline Study.
  Apr. 25, 2004. Apr 25, 2006. www.ism.com.
• Nieves, Anthony. Why Social Responsibility
  Matters. Sept 2004. Apr 23, 2006. www.scmr.com.
• Roberts, Julie S. Inside Supply Management. May
  2004. Apr 25, 2006. www.ism.ws.
• WalMartfacts.com