How Should They Practice CSR Activities Efficiently Commerce Essay

How Should They Practice CSR Activities Efficiently Commerce demonstrateThe current focus of incarnate brotherly right for corporations is no pro pertinacioused on how they implement CSR activities, but on how should they consecrate CSR activities efficiently and efficaciously (Roberts, 2003). During the last trio decades, much and more companies, especi eachy the heavy(p) transnational corporations, con implemented and set up series of automatic codes of top, develop sustainability strategies and as intumesce announced and implemented environmental annual reports to engage in bodily amicable responsibilities. Indeed galore(postnominal) transnational corporations construct do efforts to engage in their in unifiedd tender duty by transaction with environmental and societal issues in globular diagnose out compasss. However, there is as yet a gap amongst the desirability of put out fibril sustainability in theory and the writ of execution of sustaina bility in practice (Bowen et al., 2001 Andersen Skjoett-Larsen, 2009).In discussing the divergent aspects of bodied amicable province cardinal issue contains to be peculiarly heighted out that this study fecal exitnot cover e precise single aspect of in somaticd social responsibleness practices in acceptations of interpretation, application as sanitary as perplexity aspects. After all, corporate social responsibility cannot be easily disentangled from the companys operations. Since CSR is a complex supposition and issue, it is embedded at heart the organisation from top to ass and also across the spherical drag of operations.This study focus on the key issues related to CSR practices in the global chip in bondage.Research questions and pop the questionThis study is going to identify a apprehensionual frame ca-ca for understanding and analysing CSR practices in global interpret fetter. The purpose of this study is going to address following research qu estionsUnderstanding corporate social responsibility and bestow drawing strings in the global stage setting.How is corporate social responsibility related to and applied in global total bondage?How atomic number 18 corporate social responsibility activities and practices implemented and effd in a particularized chosen transnational corporation- Primark?Structure of this studyChapter two formulates the broad writings palingenesis on corporate social responsibility and carry out orbit counselling. In chapter three, methodology and data collection leave be explained. Chapter four contains a metaphysical framework of globalisation, corporate social responsibility as a contend of rail line in a global context, tot grasp in the globalisation, corporate social responsibility in global give duress as rise as the motivations of implementing CSR practices at bottom tot chains. And how these concepts argon interrelated will be also discussed in this plane section. Chapter five will bequeath empirical findings from a exercise study-Primark. Chapter six includes analysis of this study. Chapter seven will consist with conclusions, discussions, and limitations of this study as rise up as the academic and practical recomm breakations. Chapter eight is mainly followed by a reference list and the appendixes. The overall structure of this study is screening in the bode 1.Figure 1. The structure of this studyLiterature followThe main purpose of this section is going to provide a theoretical framework. It basically identifies the literature achievements and some current social issues that organisations confront with. Firstly, this section is going to explain three distinct concepts respectively including globalisation, corporate social responsibility and supply chain management. Then this section will explain how the exhibit of globalisation influences the corporate social responsibility and global supply chains. This section is going to summa rise the main motivations of implementing CSR practices in the global supply chains. An interrelated kin between these concepts will also be set.globalizationGlobalisation has become a common social phenomenon. Hines and Bruce (2007) provide a description of globalisation as the slipway in which treats capture converged passim the world and the ways in which return poles have put forwarded geographically to remunerate global consumers. Levy (1995, p. 353) also presents the definition of globalisation from the frugal point of view as the increasing foreignisation of the drudgery, distribution and marketing of goods and services. near academic researches argue that one motivation of globalisation could be the cut into political decisions (Scherer Palazzo, 2009), supported by technological, social and economic ripening. The growing cross- pillow slip area and cross- country transfer of resources in wrong of assets, capital as fountainhead as knowledge, also foster the progress of globalisation (Scherer Palazzo, 2009).Along with globalisation, bipartite agreements and intergovernmental organisations are increasingly authentic during the last three decades to act upon and moderate growth, stability and a stripped standard of living in the context of globalisation. The members of these intergovernmental organisations all agree to secure and maintain fair and benevolent workss conditions in home countries and countries where they have economic relationships with (Crane, Matten Spence, 2008). Although there are galore(postnominal) agreements, regulations and intergovernmental organisations, in this section is going to discuss three of them which are more or less related to this study, including International Labour Organisation (ILO), General Agreement on Tariffs and trade in (GATT) and also International Non-Governmental Organisations (NGO). The following portion is going to puddle a brief introduction and description of these multil ateral agreements and intergovernmental organisations, identifying their potential to regulate global standards for all nation states as good as multinational corporations.International Labour Organisation (ILO)General Agreement on Tariffs and Trade (GATT)The General Agreement on Tariffs and Trade (GATT) developed at the end of WWII leads to the breakdown of trade barriers and encourages cross-b rear trade and sendments (Scherer Palazzo, 2009).International Non-Governmental Organisations (NGO)International Non-Governmental Organisations (NGO) are non-official, non-profit, sea captain organisations with a distinctive legal character, focusing on engaging and maintaining creation welfare (Crane, Matten Spence, 2008 Clarke, 1998). The main public issues NGOs focus on are valet rights, gender discrimination, social welfare, working and living conditions, the environmental issues, agricultural development and so on (Clarke, 1998). NGOs play an important social function in working with national governments, international organisations as swell as multinational corporations by using the net work of members to collect information related to specific issues (Ottaway, 2001). Many multinational corporations increasing confront with pres certain(a)s from NGOs, to govern their behaviours based on various international agreements and codes of conduct. However, empirical studies and reviews suggest a link between corporate social responsibility, NGOs, and organisational performance (Doh Guay, 2004). As long as the multinational corporations believe those codes that NGOs provide could become uniform standard in their industry, they are willing to obey and agree those codes to gain global maiden mover competitive advantages which could improve efficiency and performance as well as build positive image in the long term. Researches in the single-valued function of NGOs in development of global corporate responsibility focus on the increasing growth in NGO influence as well as the involvement of government and corporations (Doh Guay, 2004).Corporate social responsibilityDefinitions of corporate social responsibilityCorporate social responsibility is a debated subject and study concept in contemporary crease and academia. It is also regarded as an important topic for research and worth for study (Burton Goldsby, 2009). Since the beliefs and cognitions virtually the relationship between corporations and large society vary with the relevant issues of the day, there is escape of strong consensus on a definition for CSR. The most commonly cited definition is described by Archie Carroll (1979) as the social responsibility of business encompasses the economic, legal, ethical, and discretional expectations that society has of organisations at a given point in measure. Whats more, Matten and bootleg (2004) offer further description of CSR as a cluster concept which overlaps with much(prenominal) concepts as business morality, corporate phila nthropy, corporate citizenship, sustainability, and environmental responsibility. It is a dynamic and contestable concept that is embedded in each social, political, economic and institutional context.(Crane, Matten Spence, 2008)Maignan and Ferrell (2004) develop a brief overview of conceptualisation of corporate social responsibility by summarising four different berths on CSR.The first situation stated by Maignan and Ferrell (2004) is to view CSR as social obligation. Bowen (1953) states that organisations should manoeuver social obligations to pursue those policies, to make those decisions, or to follow those lines of action which are preferred in legal injury of the objectives and values of society. Whats more, in the later literatures, Carroll (1979) distinguished social responsibility into a pyramid (Shown in the Figure 2.) with four different layers which are economic, legal, ethical and philanthropic responsibilities. Companies should make profit with obeying the law, as well as act ethically in the business activities. Philanthropic responsibility is some corporate actions in response to societys expectations at the same fourth dimension engaging in promoting goodwill or welfare (Gronvius Lemborg, 2009 Maas, 2010).Another perspective of corporate social responsibility is to view as stakeholder obligation (Maignan Ferrell, 2004). Stakeholder aver has a significant impact on the contribution to the long term success of the corporation. It is important for the organisation to take stakeholders interests into account. A stakeholder is defined by Freeman (198446) as any group or individual who can affect, or is affect by, the achievements of organisation objectives. Henriques and Sadorky (1999) identify four main stakeholders of organisations which are organisational stakeholders (including employees, customers, shareholders and suppliers), community stakeholders (including local residents and special interest groups), regulative stakeholders (such as municipalities, regulatory systems and governments) as well as media stakeholders (Chung, 2005). Basically, the corporation has the responsibility and obligations to meet the rights and interests of all legitimate stakeholders, simultaneously, stakeholders place ethical expectations on business because they have a reciprocal relationship. However, how to balance the competing interests of these stakeholders is a crucial issue to organisations. The corporation has the responsibility for balancing delicately the multiple claims of conflicting stakeholders. However, the complex stakeholder terms make the decision-making process more complicated. It is also a major CSR challenge that companies could looking at during managing global supply chains.The third perspective mentioned by Maignan and Ferrell (2004) is CSR as ethics driven which implies that CSR practices are driven by the self-interests of a company. However, according to Jones (1995), when CSR is viewed as ethical dr iven, there is a lack of normative criteria to evaluate whether the business practices and activities should be considered as socially responsible. Thus CSR should be viewed as a self-developed regulatory mechanism based on its own interest unaffiliated of stakeholders obligations.The forth perspective stated by Maignan and Ferrell (2004) is that CSR is managerial processes. Under this perspective, Ackerman (1975) identified three main activities of corporate social responsiveness including monitoring and assessing environmental conditions, attending to stakeholder demands, designing plans and policies aimed at enhancing the firms positive impacts. Whats more Wartick and Cochran (1985) as well as Wood (1991) pointed out that issues management and environmental assessment could contribute to achieve a proactive social responsibility stance.Figure 2. Carrolls (1991) pyramid of corporate social responsibilityBy summarising the literatures of corporate social responsibility, there are two main characteristics of corporate social responsibility (Maas, 2010 Andersen Skjoett-Larsen, 2009 Crane, Matten Spence, 2008). The first one is the voluntary activities of companies in the realm of social and environmental issues that go beyond the law. Corporate social responsibility offers a more voluntary approach to address the role of corporations in society and manage externalities coherently, comprehensively and professionally. Another core characteristic is the relationship between business and larger society. Corporate social responsibility includes a wider shape of interests and impacts of different stakeholders kinda than just shareholders. The group of stakeholders and interest groups include customers, suppliers, employees, NGOS, the local community representatives, and so on The evaluation of capabilities and competences of companies is not just limited in a matter of making cyberspace.Corporate social responsibility a global challengeIn a global context of corporate social responsibility, the literature on the study concept, twain academic and practitioner, is wide and considerably large (Crane, Matten Spence, 2008). Various international institutions have set up guidelines and standards to make sure companies hold back certain rules of conducts. Corporations pursue growth and market share done with(predicate) globalisation, they have confronted with several challenges that may limit the ability of gaining potential profits and organisational growth. These challenges may come from government regulations, environmental restrictions, tariffs and trade barriers. Crane, Matten and Spence (2008) conclude three main challenges for CSR in a global context.The first one is construction new social capacities. In a global context of corporate social responsibility, the social meaning and definition differ in different regions of the globe. Thus, managing corporate social responsibility is not just enforced by the companies themselves and the legal framework issued by national government, it is also essential to consider and acknowledge the specific global standards and regional actual circumstances in which corporations practice and manage CSR. This current issue requires companies establish new roles or even found new operational department beyond their tralatitious expertise to develop partnerships with NGOs and local governments to address these issues.The second challenge mentioned by Crane, Matten and Spence (2008) is the involvement in rule-making. Under the nature of global governance, in a certain extent, corporations are involved in setting the rules of trade agreements, normalisation efforts as well as economic agreements. The participation in rule-making process makes corporations become the rule-maker as well as the rule-taker which could crack implement and observe the regulations and standards they have agreed upon.The third challenge for CSR is broader accountability (Crane, Matten Spence, 2008). The accountabilities of CSR involve human rights, health care and education, global poverty and environmental issues such as global warming. At the global level, the accountabilities of CSR become more complex, broader and delicate. As mentioned above, it cannot just focus on the local social and environmental issues, corporations also have responsibility and obligation on the countries they have economic relations with.However, more and more companies see corporate social responsibility as an luck rather than a threat in the global context, in order to increase market share, innovative power and employee motivation as well as embody advantages, Corporate social responsibility in a global context is no longer only on the schedule of large, multinational corporations, some small and medium enterprises which are involved in the mesh of international suppliers and customers also hold accountable for certain activities indoors the supply chains (Cramer, 2006).The way in which CSR i s institutionalised, harmonised and practiced in the global context is fluctuating.Review of different motivations for CSR fork up chain managementHandfield and Nichols (1999) present a definition and description of supply chain as the supply chain encompasses all activities associated with the flow and transformation of goods from the raw stuff stage through to the end-user, as well as the associated information flows. worldly and information flow both up and down the supply chain. Supply chain management (SCM) is the integration of these activities through improved supply chain relationships to achieve a sustainable competitive advantage (Handfield Nichols, 1999, p.2 Cited in ). The supply chain management consists with various interdependent activities from sourcing and purchasing, production, distribution and transportation as well as sales that operate and manufacture in both the growing and developed countries around the globe (Chung, 2005) , as shown in the Figure 3.Figur e 3. Key activities in the supply chain management pedal (Chung, 2005) QQ20120820202923.pngThroughout the 1970s and 1980s, the practice journals in the fit out sector developed the term pipeline to explain the whole process of raw materials through manufacturing processes to the final customer (KSA, 1987 Hunter, 1990 Hunter et al., 1993 Hunter and Valentino, 1995 Hines, 2007). More recently, demand chains and value networks (Hines, 2007) are used to describe supply chains which emphases the role of customers and adopts the trend of rapid changing customer demands. Figure 4 shows the supply chain process cycles.Figure 4. Supply chain process cycles (Hines, 2004 Cited in Hines Bruce, 2007)There are numbers of different perspectives on the development of the concept of supply chain management. Based on the analysis of Hines (2007), there are mainly four perspectives of managing supply chains. First one is to focus on improving productivity internally of supply chain management. The second perspective extends the first concern with productivity to improve operations. The third wave, which was developed in the transport and distribution literature and now is synthesised in the logistics literature, mainly pertain with moving goods efficiently. The forth and latest perspective emphases the important role play by customers within the demand chain. The development of supply chain increases the complexness and flexibility requiring organisations to deal with. During the last decades, active responsiveness to the supply chain has is becoming more and more important. Table 1 shows the main shift in analytic focus of supply chain over time (Hines Bruce, 2007).Table 1. Analytic focusFrom (pre-1990)To (post-1990 to present)Predominantly internal focus trading operations (Internal efficiency)Exchange/transactional focusFunctional processes (silo mentality?)Cost efficiency (inputs/outputs) corporal processesProduct quality (only major concern)Simple (e.g. dynamic structu res and relationships) tralatitious analogue supply chainsInventory managementPredominantly external (dyadic, chain, network)Strategies (external market orientation)Relationship/structure focusIntegrationValue added (outputs/inputs)Financial, informational and virtual processes returns quality and total quality approachesComplex structures (e.g. networks)Digital supply chains (value nets)Information and customer serviceSource Hines, 2004, Purchasing and supply chain literature from 1930s to present day (Cited in Hines Bruce, 2007).Until recently, most of the literatures and practice of supply chain management emphases on issues that relate to court-efficiency of supply chains, relationships with supply chain partners, supply chain strategies, customer services as well as different types of supply chains. However, the increasing sourcing organisational activities and building partnership in developing countries as well as the increasing concern about environmental and social issues has led new social concepts which is normally appreciate as sustainable supply chains, aiming at improving and protecting the companies and employees within the supply networks. The focus of sustainable supply is not only on the local optimisation of environmental factors, but also on the consideration of the entire supply chain processes. During the last decade, the study concept of supply chain sustainability has been received great interest in both academia and the practitioners (Hassini, Surti Searcy, 2012). Since companies are suffering great pressures from various stakeholders, particularly from government regulators, non-government organisations (NGOs), as well as the global competition, a large number of companies have engaged in the commitment to corporate social responsibility practices. Hassini, Surti and Searcy (2012) provide a definition about sustainable supply chain management by summarising different academic and social concepts including business sustainability ( Crane Matten, 2007) and the triple bottom line (Elkington, 1997), as the management of supply chain operations, resources, information, and funds in order to maximise the supply chain profitability while at the same time minimising the environmental impacts and maximising the social well-being. These definition emphases the splendour of balancing and satisfying conflicting interests of multiple stakeholders.By analysing and summaries the literatures on the supply chain management and sustainable supply chains, there is a lack of appropriate and systematic performance measures and framework for supply chains which makes it unenviable to evaluating the sustainability initiatives in supply chain management (Lehtinen Ahola, 2010 Hassini, Surti Searcy, 2012).The internationalisation of supply chainsThe process of globalisation creates competitive pressures for garb and textile producers to search for ways to spurn production costs, curiously for the fast fashion, which is requir ed quick answer to customer demands, high seasonal variation and creative design. Organisations improve and take efficiency measures from internal to a single organisation or network of organisations locked in a continuous supply chain. The second way that organisations to impose their production costs is to search lower cost sources of supply passim the globe in order to find locations where conditions are more aureate than in the home market (Hines and Bruce, 2007). This process will create the global supply chains.Under conditions of globalisation, products are no longer manufacture and produced in just one country, but designed and produced in different production sites in various locations around the world which is a result of global investment (Homann, Koslowski Luetge, 2007). Globalisation has two facets which are globalisation of production and globalisation of markets, which means globalisation is present at the production stage as well as the retail stage. Primary pro ducts are increasingly manufactured in different production sites around the globe to benefit from lower labour costs, raw materials as well as the lower cost of transportation, which could increase the degree of division of labour. Homann, Koslowski and Luetge (2007) illustrate that division of labour could take place when manufacturers of primary products at different locations. Globalisation accelerates the process of international division of labour both in vertical integration and in the supply chain.Apparel manufacture is one of the areas that globalisation has offered significant cost reduction opportunities, referable to high labour content and cost- effective to transport. As a result of globalisation, both multinational companies and local manufacturers in the apparel industry have benefited tremendously from cost reduction. Based on the program line of Cramer (2006), the globalisation of supply chains has led to heavy social critique, especially when companies using ch ild labour or working in countries that bumble fundamental human rights, which damages companies reputation. During the last decade, one of the key business trends resulted by globalisation is the outsourcing key business and operation activities to suppliers and subcontractors. Based on the description of GEMI (2001), this trend has made certain suppliers more critical, extends liability throughout the lifecycle, and the result is a significant shift of corporate environmental, health and condom risks and opportunities off site As a consequence, some of those business risks and opportunities may become Procurements responsibility (Cited in Roberts, 2003)Based on the statement of Dicken (1998, p. 283), the textiles and clothing industries are the first manufacturing industries which are shifted by globalisation. The phenomenon of globalisation has shaped the structure, strategies and consequences in the textile and clothing industries. Global shifts in these industries also increa se the trade tensions between developed and developing world (Hines Bruce, 2007). During the last three decades, many corporations restructure organisations and outsource many functional and traditional activities to the companies in the developing countries. Efficient and effective supply chains are essential to manage customer demand and brand operations, especially for the high-changeable fashion and apparel industry. The reasons that organisations hire attention on the supply chain management are due to the trend of globalisation, the reducing time of pushing into the market, as well as the rising standard of customer demands. Globalization has significantly changed the international market. Traditional supply chain is moving to the direction of the development of the globally structured supply chain, becoming a cross-functional and cross-regional supply chain. Sustainable supply chain management plays an important role in maintaining brand integrity, ensuring business tenac iousness and controlling operating costs. The main purpose to promote sustainable supply chain is to build long-term environmental, social and economic value. By proceed construction of the supply chain, companies could protect their long-term capabilities. The process of globalisation is one major reason of increasing reliance of corporations on suppliers and sub-suppliers (Welford, 2002). Thus the supply chain is more and more complex and international. This is what makes global supply chains within fashion markets and fashion marketing worth to study.The traditional supply chain management (SCM) is the process of the business operations in terms of supply chain planning, execution and control in order to maximise its efficiency. In general, the whole process of supply chain management could go from raw material acquisition, components, manufacture, logistics, quality services to pre-retail services including labelling and packaging (Hines Bruce, 2007). In order to reduce costs and improve efficiency, most of modern multinational corporations choose supply chain outsourcing services, namely, as the identity of the buyers chooses the most cost-efficient suppliers (including foundries and logistics companies, etc.) to complete their production as well as enhance the borderline benefit. However, to maximise the efficiency as a prerequisite, the traditional supply chain management ignores the social and environmental factors, and therefore in the past decades, corporate social responsibility in supply chain management became a new management philosophy in many organisations. Therefore how to better manage the supply chain performance and enhance their capacity is very worthy of study.Many well-known multinational enterprises, taking the cost of production into account, come to the Asian countries like China, India, etc., to corporate with local companies to manufacture their products. Since the absolute majority of suppliers in developing countries are la bour-intensive enterprises, and the relevant enforcement of laws and regulations needs to be improved, therefore working conditions are unsatisfactory. Frequent overtime, unpaid wages, under minimum wage standard happen consistently. Along with media exposure and NGOs fierce criticism of sweatshops in especially Europe and the United States as well as other countries, multinational enterprises are beginning to require suppliers to comply with the ordinance of Conduct (CoC) and the relevant laws and regulations in the location of the suppliers (environmental protection law, labour law, etc.) to conduct the labour and environmental requirements and policies. Subsequently a lot of industrial standards, such as the garment industry, WRAP, EICC of electronic industry, the ICTI of the toy industry, and chemical industrys Responsible Care. In order to ensure the performance of suppliers in terms of labour and environment performance, internal staff or third-party would be sent to the supp lier factories for review and evaluation. If the quality and feature of products are dissatisfaction, the suppliers will be asked to provide avail to make improvements or even cancel the order.Corporate social responsibility in supply chain managementFor suppliers, the meaning and definition of CSR is relatively narrow, is merely about how to meet customers needs, achieve social and environmental compliance, such as timely payment of wages, make sure working hours, in order to maintain operational order and ensure efficiency and effectiveness. CSR for the majority of suppliers is only about law-abiding, however, they do not properly understand the benefits of the implementation of CSR, and thus they just implement the so-called CSR improvement involuntarily.Despite the long history of CSR, applications of CSR concepts to supply chain management have only emerged in the last few years. Sustainable supply chain management is about management of supply chains where all the three dime nsions of sustainability, in terms of the economic, environmental and social sustainability, are taken into account. Supply chain relationships have a critical impact in a global world. In order to advantage from low labour wages, more and more companies ofttimes outsource part of or even whole business activities to companies in developing countries. When sustainable SCM principles are adopted, the companies are accountable for the social and environmental impacts on the supply chain, and are compelled to integrate ecological and social aspects into their decisions and actions along their supply chains. When supply chain relationships involve developing countries, companies also need to take responsibility for the well-being and performance of small upstream producers that work in those countries. The Figure 5 shows some CSR issues that companies may confront with in managing their global supply chains.Figure 5. Examples of CSR issues in supply chains (Neergaard and Pedersen, 2005 , p. 103 Cited in Pedersen Andersen, 2006)Therefore, helping supplier social responsibility should focus on how to make suppliers understand the business value of CSR, how to reflect the return on invest