This document discusses corporate social responsibility (CSR) and the risks companies face when outsourcing production. It notes that a strike occurred at an Apple supplier in China, highlighting the risks to Apple's brand and sales if such issues are not addressed. While lower production costs are a benefit of outsourcing, companies often do not fully account for the social and environmental risks that can damage their reputation. The document argues that companies need to develop outsourcing models that consider CSR and make reducing these risks a priority rather than just a public relations effort. It is the brand, not the supplier, that ultimately bears the risk if problems occur.
Supply Chain Insights Webinar on Supply Chains to AdmireLora Cecere
Supply Chain Insights Webinar on Supply Chains to Admire presented on September 25th, 2014. Results of a two year study on supply chain excellence and the connection of financial ratios to balance sheet information.
Supply Chain Insights Webinar on Supply Chains to AdmireLora Cecere
Supply Chain Insights Webinar on Supply Chains to Admire presented on September 25th, 2014. Results of a two year study on supply chain excellence and the connection of financial ratios to balance sheet information.
Achieving excellence in production and supplyPwC Russia
В этой брошюре мы сосредоточили свое внимание на пяти вопросах, решение которых в существенной степени определяет разницу между высочайшим, удовлетворительным и средним качеством в промышленном производстве.
Grant Thornton - Virtual world, real risks - online brand misuse and abuse (s...Grant Thornton
1 in 7 searches for a brand will lead to an unauthorised site diluting any investment a brand has made on the internet. This article offers an introduction to some key areas of risk which come with managing your brand online.
IBM Study On Sustainable Corporate Social ResponibilityrScott Rains
In order to attain sustainable growth through CSR, companies must:
1. Align and incorporate CSR with business
strategy and integrate it across all perational
functions, thus making it easy to invest
(not spend) the funds necessary to achieve
its objectives;
2. Implement an open information strategy for
more transparent information sharing with
multiple stakeholders;
3. Leverage transparency to increase the levelof engagement of key constituents and
customers.
Enterprise system implementations can be invasive, disruptive, and even counter-productive, causing considerable expense, possibilities of wrenching business-process change, and gnawing uncertainty in the minds of employees. But while no magic pill guarantees an implementation will be quick, painless, and successful, there are steps manufacturers can take to secure ERP value without risk of catastrophic failure.
Who Will Be the Rock Stars of Corporate Sustainability?Victoria Zelin
This article was written in January, 2010, based on my presentation at the conference, Science, Wisdom, and the Future: Humanity's Quest for a Flourishing Earth in 2009. Published as a book of the same name in 2012 by Collins Foundation Press as a compilation of essays by scientists, philosophers, economists, educators, activists, artists and business people.
http://www.collinsfoundationpress.com/
Infosys – Manufacturing Industry Restructuring | IT Infrastructure ComplexityInfosys
B.G. Srinivas of Infosys explains four strategies to restructure manufacturing industries, to be leaner and more nimble, and to overcome the current economic crisis
IDC Energy Insights - Enterprise Risk ManagementFindWhitePapers
Operational risk management is a rising priority for companies in asset-intensive industry segments. Disparate and disconnected efforts in safety, environmental compliance, and asset utilization at the individual facility are converging to provide better enterprise-wide control and management accountability. Companies that make substantial efforts today will not only improve risk mitigation but create an enduring competitive advantage.
In this presentation, given at the 2013 SEHK forum, I speak about the future of social innovation within corporate structures to bring scale to ideas that benefit society, the environment, and promote a stable economy.
If interested in seeing the video, you can click here:
In this presentation, given at the November 14 Food Talk, I spoke about the macroeconomic trends that have been driving China's food imports off the charts.
Urbanization has led to increase demand for a variety of foods and flavors that were once unthinkinable, a sign of progress, but with 40-60% waste (from food to fork), China is quickly becoming a country that is food insecture. A country that was once able to feed itself, the last ten years have become completely dependent on imports to meet the demands of the market.
A market that is going to see another 300 million people join by 2030.
Achieving excellence in production and supplyPwC Russia
В этой брошюре мы сосредоточили свое внимание на пяти вопросах, решение которых в существенной степени определяет разницу между высочайшим, удовлетворительным и средним качеством в промышленном производстве.
Grant Thornton - Virtual world, real risks - online brand misuse and abuse (s...Grant Thornton
1 in 7 searches for a brand will lead to an unauthorised site diluting any investment a brand has made on the internet. This article offers an introduction to some key areas of risk which come with managing your brand online.
IBM Study On Sustainable Corporate Social ResponibilityrScott Rains
In order to attain sustainable growth through CSR, companies must:
1. Align and incorporate CSR with business
strategy and integrate it across all perational
functions, thus making it easy to invest
(not spend) the funds necessary to achieve
its objectives;
2. Implement an open information strategy for
more transparent information sharing with
multiple stakeholders;
3. Leverage transparency to increase the levelof engagement of key constituents and
customers.
Enterprise system implementations can be invasive, disruptive, and even counter-productive, causing considerable expense, possibilities of wrenching business-process change, and gnawing uncertainty in the minds of employees. But while no magic pill guarantees an implementation will be quick, painless, and successful, there are steps manufacturers can take to secure ERP value without risk of catastrophic failure.
Who Will Be the Rock Stars of Corporate Sustainability?Victoria Zelin
This article was written in January, 2010, based on my presentation at the conference, Science, Wisdom, and the Future: Humanity's Quest for a Flourishing Earth in 2009. Published as a book of the same name in 2012 by Collins Foundation Press as a compilation of essays by scientists, philosophers, economists, educators, activists, artists and business people.
http://www.collinsfoundationpress.com/
Infosys – Manufacturing Industry Restructuring | IT Infrastructure ComplexityInfosys
B.G. Srinivas of Infosys explains four strategies to restructure manufacturing industries, to be leaner and more nimble, and to overcome the current economic crisis
IDC Energy Insights - Enterprise Risk ManagementFindWhitePapers
Operational risk management is a rising priority for companies in asset-intensive industry segments. Disparate and disconnected efforts in safety, environmental compliance, and asset utilization at the individual facility are converging to provide better enterprise-wide control and management accountability. Companies that make substantial efforts today will not only improve risk mitigation but create an enduring competitive advantage.
In this presentation, given at the 2013 SEHK forum, I speak about the future of social innovation within corporate structures to bring scale to ideas that benefit society, the environment, and promote a stable economy.
If interested in seeing the video, you can click here:
In this presentation, given at the November 14 Food Talk, I spoke about the macroeconomic trends that have been driving China's food imports off the charts.
Urbanization has led to increase demand for a variety of foods and flavors that were once unthinkinable, a sign of progress, but with 40-60% waste (from food to fork), China is quickly becoming a country that is food insecture. A country that was once able to feed itself, the last ten years have become completely dependent on imports to meet the demands of the market.
A market that is going to see another 300 million people join by 2030.
In this presentation, I speak to an issue that I have been spending more time on.
That through urbanization, many are left without a natural community in the city and as the glue between people is lost the balance is more difficult to maintain.
A balance that is needed at the local level for any balance to be found at the global level
I recently gave this presentation to a conference of academics in China as a way to highlight how case/ project based teaching methods can be used to increase learning capacity and leadership skills.
For many who still only see Corporate Social Responsibility (CSR) as a "nice to have", CSR is merely a box to check with no clear strategic purpose; normally just set the budgets for annual donations and volunteering events. However, there are also some companies who are beginning to break out from the standard reasons for “investing” in CSR and realise that having a structured strategy, framework, and mindset of CSR can actually result in a positive ROI for their business.
Due to rising stakeholder expectations, increased resource constraints, and more complex regulatory environments, there is a growing trend of companies moving away from the intangible application of CSR to strategically looking at where social, environmental, and economic exposures and opportunities exist for the business itself.
in this pitch, delivered at 2013 Henken Innovation Challenge, I focus on the need for a recalibration of business as usual, the catalysts for a shift away from Business As Usual, and examples of firm and frameworks making the shift.
Focused on the impact that local issues and stakeholders are going to have on the supply chain’s of many operating in China, I delivered the above presentation at the 2012 CHaINA conference in Shanghai.
Overarching goal of the presentation was to highlight opportunities for firms to strengthen current systems as well as understand/ plan for a future where the issues of environment, economy, and society increase pressure on both the top and bottom line of the firm.
Can Social Innovation be a sustainable business model? Nowadays, we do not simply rely on the government or NGOs for solving social problems. What can be done by a start-up enterprise or multinational corporation? How can Social Innovation be incorporated into their business practices?
In this session, we looked at Social Enterprise in Asia, the opportunities and hurdles that exist, and the scalability of various businesses
In this presentation, delivered to 100 business leaders and alumni at Hong Kong Polytechnic University, I discuss the future of business as an ongoing concern.
As you will see, as the externalities that are paid for by the wider economy, environment, and society are removed, and firms are forced to move to a full cost model, sustainability, CSR, and social entrepreneurship will no longer occupy the long tail. These practices will not just be best practices, they will be required to participate in the economy under a re-calibrated business as usual.
Feel free to contact me by email (rich -at- collectiveresponsibility.org) or follow up on twitter (@ChinaCSR)
In this presentation, given to attendees of the International Strategic Technology Alliance, I spoke about the opportunity of tech focused social enterprises in China.
In this presentation I speak about the trends driving more corporate volunteer programs, and the key successful factors of building a program in China.
In this presentation, given at the 2011 Ecolifestyle forum in Shanghai, I speak about the catalysts, trends, and opportunities for "green" and LOHAS in China.
Once a market confined to exporting of products, there is now a growing domestic market for products and services locally.
As part of this presentation to the Shanghai Chapter of the British Chamber of Commerce, I discuss the dynamics of CSR/ sustainability in China and how firms are responding.
This presentation was given to 500 university students in early August. Entitled One Person Can Take One Step, it is about the personal responsibility of individuals and how individuals CAN change the world one step at a time.
In this presentation, given to a roundtable of 25 senior executives, I discussed some of the China centric trends that are catalyzing maturing in CSR. Followed by
Social entrepreneurs & enterprises: Taking Responsible Steps Towards Sustaina...Collective Responsibility
In this presentation, give on November 28 to a group of NYU students in Shanghai, I speak about several topics to help frame sustainability and the role of social entrepreneurs in bringing solutions to the market
throughout the presentation, I worked to show my own history, highlight the importance of having a tangible relationship to the issue, and the importance of build a platform built on knowledge and real solutions.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. CSR
“ The strike itself was
not all that different
from others where
workers were expressing
their dissatisfaction.
But the fact that this
strike was not the first
one to hit an Apple
supplier should have
propelled management to
immediate action, not just
as a feel good measure of
corporate responsibility,
but because there was a
real risk to damaging the
brand and global sales.
”
Coming to terms
By Richard Brubaker
with the true costs I
n the run-up to Apple’s recent launch
of the iPad, the focus of the media,
analysts and consumers was on
whether the new product would become a
of outsourcing
replacement for Amazon’s kindle; whether
consumers would accept the addition of
a new device, and what content would be
made readily available. Eight thousand
miles away the story was very different, as
2,000 workers at Apple’s Suzhou-based
supplier, Wintek, were on strike and the
production lines were idle.
A mix of rumours on the reasons behind
the strike action circulated, including that
staff had been exposed to toxic substances
and that Wintek had failed to pay overtime
salaries. The problems at the supplier
should not have come as a big surprise to
Apple – the company’s own 2009 supplier
Firms need a new approach to responsibility report revealed that more
than half (43 of 81) of their China-based
developing outsourcing models
suppliers were not in compliance with
which takes into account the company directives.
risks to brand and reputation
that hide beneath lower cost Economic and moral balance
production in regions like Asia For many, corporate social responsibility
(CSR) has had the look and feel of a fluffy
add-on; something to be done when extra
18 Supply Chain Asia May/June 2010
2. CSR
money was in the bank or when a little Why is this the case? Because a firm steps to remove the risk of economic,
extra brand value needed to be created. that has a core of responsible decisions and environmental, and social failures.
It has not been seen as an investment practices has a much better understanding Once ownership of the risks has been
in products, processes and people that of real costs and – unlike firms that accepted by the brand, the next step is to
create sustainable businesses, or as a act irresponsibly through graft, labour/ work out where those risks lie, and where
strategic counter-balance to the negative environmental abuse, and so on – is not the exposure points exist. Firms needs to
externalities that many expose themselves relying on anyone to subsidise negative ask whether the main threats are found in
to when outsourcing production to another externalities. At some point, firms that environmental, labour, product quality, or
country. While consumers on the whole ignore CSR will be forced to move into other areas, and what the relationships are
may not understand the complexity of a compliance and pay the real price for between these issues and stakeholders?
supply chain, or have a direct personal what they do. The question at that point They need to ask will it be a government
connection to the labourer who assembled is whether or not they can continue to official upholding a regulation; a blogger
their product, they do have a line, and they compete on the new cost basis. exposing an environmental failure; a line
will increasingly walk away from firms that In the article ‘Why Apple can’t control worker who falls ill, or a consumer who dies
break the unwritten and written codes. This its Chinese factories’ it was recently that will expose the problem?
is a fact that some firms have lost sight reported by Malcom Moore in Britain’s
of over the past 18 months as the global Daily Telegraph that the company was Low cost does not always mean full
recession took hold. powerless to make a change in suppliers cost
For Apple, the strike itself was not all when an employee committed suicide at Outsourcing a component, or a process,
that different from others where workers Foxconn’s Suzhou facility because, “it is to a firm may bring immediate economic
were expressing their dissatisfaction. But the triumvirate of big suppliers who are in benefits through economies of scale, by
the fact that this strike was not the first charge of running the system day-by-day. If allowing organisations to focus on core
one to hit a supplier of the global computer Apple tried to take its business elsewhere, activities, or by savings from lower labour
brand should have propelled management it would risk losing its entire supply chain”. costs. But firms should never assume
to immediate action, not just as a feel good If there is indeed something here, it signals that these reduced costs, as quoted by
measure of corporate responsibility but the labour woes are symptomatic of a much an external firm, somehow represent
because there was a real risk to damaging wider supply chain management issue, the full costs of the move from in-house
the Apple brand and global sales. and highlights once again why firms need operations to outsourced operations, and
Yet the conditions did not garner the to reassess how their supply chain models
‘red alert’ one might have expected, and are constructed, this time with CSR and
within six months of the release of the sustainability in mind.
supplier responsibility report, news of a
Foxconn employee committing suicide
threatened to become a commercial issue
for Apple as it highlighted the problems the
The brand carries the risk
It should be abundantly clear that regardless
of whether a supplier has produced to
“ Regardless of whether
a supplier has produced to
spec or failed to produce
company was facing with its suppliers. spec or failed to produce to spec, it is
For those who would suggest that ultimately the brand that carries the risk.
to spec, it is ultimately the
companies should work to find a balance Nike, Mattel, Toyota and many others brand that carries the risk.
between economic and moral imperatives, have all learned this lesson the hard way. Nike, Mattel, Toyota and
what we are finding is that it is the firms It is an expensive lesson to learn, and one others have all learned this
”
who act morally that perform the best that others should take note of. Brands,
economically over the long-term, and those not suppliers, ultimately carry the risk
lesson the hard way.
with the least moral imperative are more of CSR failure in supply chains, and it is
often the first to exit the market. their responsibility to take the necessary
May/June 2010 Supply Chain Asia 19
3. CSR
should understand that at some point these invest in mitigation of negative externalities
“
excluded costs will be incurred. related to their outsourced supply chains
Perhaps it will come in the form of and do not account for the risks of when
We abide by all local
the complete loss of control over one’s intangible negative externalities turn into standards” is something
supply chain, or through the erasure of very real economic costs. that one can commonly
brand equity that a firm has worked years hear when firms are
to develop through a labour scandal or Building a sustainable supply chain
a weakened quality control process that model defending themselves,
results in product failures. Either way, it is While the process of developing a but how often can you
imperative that firms begin to understand sustainable supply chain model may for remember when a firm
that low cost does not equal full cost and some begin with a CSR or sustainability said: “We have a global
that costs need to be incurred to protect programme, or may simply require a firm
the integrity of the supply chain. to add those lenses, at the end of the day
standard in place, a
the issue for firms is ensuring economic standard that did not meet
Risk and responsibility are not mutually
exclusive
“We abide by all local standards” is
and market sustainability. Like any other
sustainable competitive advantage, it is a
process that engages the entire organisation
the local conditions”?
”
something that one can commonly hear through a change in core values and drives
when firms are defending themselves. decisions that will return favourably Knowing the risks of outsourcing and off
How often can you remember when a firm internally and externally to the firm. shoring, do the benefits still outweigh
said: “We have a global standard in place, Unlike a traditional model, where the costs? Are there ways to reduce those
a standard that did not meet the local immediate gains are logged without a full risks upfront so as to ensure the long-
conditions”? understanding or recognition of how those term economic viability of the model and
For many firms, outsourcing the savings may require a top-up investment process?
production of a product or process – all of unknown proportions, a sustainable
or part – is in some ways liberation. Not model is one that anticipates early and Mature approach
only are cost savings gained through the plans around the unexpected. It is a Moving beyond the standard moral
process, but someone else also owns risk process that removes long-term risk to the reasons for developing a new approach
of a failure – supply chain failures become system, develops strength in supply chain to outsourcing that is compliant with the
the product of China’s poor quality control and distribution channels, and maintains wider needs of the economy, environment,
systems. brand equity. It is a process that ultimately and society, there is a very strong business
The shift in responsibility here is returns higher profit margins and satisfies motive for doing so. Firms are no longer
of course an illusion, as the aftermath consumers and investors. simply outsourcing their products, they
of cases such as the Mattel recall have Building a sustainable outsourcing are trusting partners to safeguard their
conclusively proven. The risk of supply model requires development of a supply brand and the availability and safety of
chain failure rests squarely with the brand chain that incorporates the value and the product.
and firms that disregard the arbitrage risks of negative externalities that may While developing the case for an
between the standards at home and those return in the future. For some that will offshore or outsourced production model,
in another location will run into issues mean understanding the costs and risks firms traditionally only looked at bottom
going forward. associated with working with a country line cost savings and will have to take a
or company that does not have the same much more mature approach to making
Mitigating negative externalities will cost level of environmental or labour controls these decisions going forward so as to
the brand much less in the long-term in place, which has created temporary ensure their place and success in the
Mattel’s original recall of product was arbitrages that will be removed over time. market.
initially estimated to cost $20m in product The next step is to understand how
and logistics costs, a figure that inflated quickly and in what manner those arbitrages Richard Brubaker is the Shanghai-based
into the hundreds of millions of dollars will be removed. Will it come through a new CEO of Collective Responsibility and Visiting
as fines were levied, class action suits regulation and/or increased enforcement Professor of Sustainability at the China Europe
settled, and market competitiveness lost. of current regulations that will force the International Business School
Why Mattel didn’t make the decision to supplier to invest in new equipment?
invest $20m into supply chain integrity Will it come in the form of a news report
is a simple function of not properly highlighting the abuse of workers in the Additional resources:
International Labor Organization (http://www.ilo.org) – Works
understanding and planning for the risks same factory you have outsourced to, and between NGOs, corporations, and government agencies to
of the outsourced supply chain, and an the potential for consumer actions that promote best practices in labour standards
unwillingness to invest in a system upfront have been proven to cost firms billions in Ethical Corporation (www.ethicalcorp.com) – Monthly
magazine promoting responsible business decision
to mitigate those risks. In hindsight, it lost revenue and brand value? making
was a bad calculation. Many firms fail to After that the assessment begins. Business for Social Responsibility – (www.bsr.org)
20 Supply Chain Asia May/June 2010