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Social Responsibility in Supply Chain Management
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Social Responsibility in Supply Chain Management

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  • 1. Social Responsibility inSupply Chain Management Wali Memon1 Wali Memon
  • 2. 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.” -ISM2 Wali Memon
  • 3. Why SR is becoming an Issue New Government Regulation “Take Back” Laws Lead in Computers Hazardous Waste Increased Community Awareness Sweatshops Child Labor3 Wali Memon
  • 4. 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 Risks4 Wali Memon
  • 5. 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 20025 Wali Memon
  • 6. 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 Sam’s Club6 Wali Memon
  • 7. 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. Apple’s Supply Diversity Program7 Wali Memon
  • 8. 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 Miller8 Wali Memon
  • 9. Ethics Abide by your organizations code of conduct Awareness of ISM principles Awareness of Ethical SCM conduct Ex. Nike9 Wali Memon
  • 10. 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. Enron10 Wali Memon
  • 11. 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. HP11 Wali Memon
  • 12. 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. HP12 Wali Memon
  • 13. 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 procedures13 Wali Memon
  • 14. 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 Suppliers14 Wali Memon
  • 15. 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.15 Wali Memon
  • 16. 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/abstract=655223) 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.com16 Wali Memon