Level Two Supply Chain Management Ethics and CSR in SCM Learning ObjectivesTo understand the relationship between ethics and CSR and SCMTo appreciate the considerations that need to be made within supply chainsTo further consider environmental and sustainability issues. CSR – Corporate Social Responsibility Key CSR ThemesResponsibilityEthicsVoluntary actionsCommitmentSustainable developmentMeeting needs of stakeholders Five Dimensions of CSRThe environmental dimensionThe social dimensionThe economic dimensionThe stakeholder dimensionThe voluntary dimension EnvironmentalSustainabilityActing in the best interests of the environment Green operations and logisticsPollution e.g. oil disastersRecycling SocialThe relationship between business and societyGlobal communityBusiness should:Not be disadvantaging individuals or other businessesLook to work with the local community Local sourcing Supplier and customer relationships Social continuedSocial considerations:Safety Social impact of productsEmployment implications for location, closures or integrationHonesty in supplier relationshipsNon-exploitation of suppliersPrompt payments Economic Positive and negative financial implicationsContribution to economic developmentInvestment in CSR practicesReturns on CSR projects and investmentsPerception and stakeholder opinion on CSR activities influencing investments Economic continued Input costs – auditing process for ensuring CSR practices within various suppliersProcessing costs – energy consumption reduction, waste reduction costsOutput costs – end of life responsibility (consumer pressure or legislation) Stakeholder Question....can you think of examples of stakeholders in relation to SCM?How should we interact with stakeholders?Global considerations Voluntary Should companies undertake the minimum CSR requirements?Or volunteer to go beyond?Balance between regulatory requirements and social responsibility Sustainability & Environmental Issues Sustainability“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Bruntland Commission (1987) Business responsibility for CSR Environmental Sustainability Operational failures tend to be at the centre of pollution disasters. Need to examine the entire supply change not just manufacturing Environmental Sustainability Environmental considerations and issues:RecyclingEnergy consumptionWaste generationEnvironmental impact of facility locationTransportation of materials and staffMaterial utilisation and waste Sustainable Supply Chains How sustainable are supply chains as we know them?Globalisation vs localisationNeed for greater levels of responsibility throughout Sustainable Supply ChainsWhen considering automotive end of life directives:Can we still focus on process improvement?How do we integrate the need to recycle?Potential issues with lean sustainability ...

1. Level Two
Supply Chain Management
Ethics and CSR in SCM
Learning ObjectivesTo understand the relationship between
ethics and CSR and SCMTo appreciate the considerations that
need to be made within supply chainsTo further consider
environmental and sustainability issues.
CSR – Corporate Social Responsibility
Key CSR ThemesResponsibilityEthicsVoluntary
actionsCommitmentSustainable developmentMeeting needs of
stakeholders
Five Dimensions of CSRThe environmental dimensionThe
social dimensionThe economic dimensionThe stakeholder
dimensionThe voluntary dimension

2. EnvironmentalSustainabilityActing in the best interests of the
environment Green operations and logisticsPollution e.g. oil
disastersRecycling
SocialThe relationship between business and societyGlobal
communityBusiness should:Not be disadvantaging individuals
or other businessesLook to work with the local community
Local sourcing Supplier and customer relationships
Social continuedSocial considerations:Safety Social impact of
productsEmployment implications for location, closures or
integrationHonesty in supplier relationshipsNon-exploitation of
suppliersPrompt payments
Economic
Positive and negative financial implicationsContribution to
economic developmentInvestment in CSR practicesReturns on
CSR projects and investmentsPerception and stakeholder
opinion on CSR activities influencing investments
Economic continued
Input costs – auditing process for ensuring CSR practices within
various suppliersProcessing costs – energy consumption
reduction, waste reduction costsOutput costs – end of life
responsibility (consumer pressure or legislation)

3. Stakeholder
Question....can you think of examples of stakeholders in
relation to SCM?How should we interact with
stakeholders?Global considerations
Voluntary
Should companies undertake the minimum CSR
requirements?Or volunteer to go beyond?Balance between
regulatory requirements and social responsibility
Sustainability & Environmental Issues
Sustainability“Sustainable development is development that
meets the needs of the present without compromising the ability
of future generations to meet their own needs.” Bruntland
Commission (1987)
Business responsibility for CSR
Environmental Sustainability
Operational failures tend to be at the centre of pollution
disasters. Need to examine the entire supply change not just
manufacturing
Environmental Sustainability

4. Environmental considerations and issues:RecyclingEnergy
consumptionWaste generationEnvironmental impact of facility
locationTransportation of materials and staffMaterial utilisation
and waste
Sustainable Supply Chains
How sustainable are supply chains as we know
them?Globalisation vs localisationNeed for greater levels of
responsibility throughout
Sustainable Supply ChainsWhen considering automotive end of
life directives:Can we still focus on process improvement?How
do we integrate the need to recycle?Potential issues with lean
sustainability
Question.....
How does the need for sustainability change SCM?
Ethics
What is Ethics?Moral principles to govern behaviourCan be
used to distinguish from others within the industryReasons for
ethical supply chain management:Brand image and customer
perceptionLegislationEnvironmental concerns

5. FairtradeFair and stable price for productsExtra income for
farmers to improve their livesGreater respect for the
environmentStronger position in the world market for small
farmersCloser link between consumers and producers
Ethical Supply ChainsFairtrade is one example However in
current market conditions businesses need to take into
consideration:Customer demands and financial
abilityResponsibility of developed nations to those still
developing
SummaryIt is clear that we have a responsibility not only to
those we work with but also wider society and future
generations. Ethics and CSR are becoming of greater
importance and consideration within SCM
To DoReadingRefer to weekly reading list
Today.....To understand the relationship between ethics and
CSR and SCMTo appreciate the considerations that need to be
made within supply chainsTo further consider environmental
and sustainability issues.
References & Further Reading

6. World Commission on Environment and Development. (1987)
Our Common Future. Oxford: Oxford University Press