M08 SociallyResponsibleSCM STUDENT

M08 SociallyResponsibleSCM STUDENT - Module 08 01 Socially...

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Module 08 Socially Responsible Supply Chain Management 01
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What is a Socially Responsible Organization? Community  - Committed to programs and practices that benefit society Environmental Sustainability  – Earth friendly business practices  Why be Socially Responsible? Responsibility as a global/local citizen Avoid legal issues, government regulation Public relations Unstable political situations could pose risks to company Impending resource shortages – Population/Market growth Increased Profits, Lower Costs? Maintain business operations? Social Responsibility 02
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How can supply chains be socially irresponsible? Customer related issues Business partner related issues – Buyers and Suppliers Labor related issues Culture related issues Country and community related issues Environment related issues How can SCM help companies become socially  responsible? Eliminate waste Proliferation of legal and ethical business practices Improve quality of life; Save lives - Teach SCM practices, Develop SC  infrastructure, Execute SC operations Social Responsibility and SCM 03
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Critics of Social Responsibility Reduces profits, increases costs (without ROI) Takes focus away from business, core competencies Company may acquire too much social power Problems solved according to Western values Other Risks and Barriers  Lack of knowledge and education – Customers, employees, partners… What is the right thing to do?  Perception vs. Reality Scrutiny by media and special interest groups Long and complex chains of partners/suppliers Barriers to being Socially Responsible 04
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Product and Customer related – Quality, Safety, Environmental  Impact Mattel, Firestone, Dog food, Baby formula Cars, Airplanes, Homes, Batteries Supplier Relationship - Treatment of partners/suppliers Partners’ labor and other business practices Prices paid for materials Corruption, Bribery, Collusion Processes used to develop, acquire, extract…materials Example: DeBeers, Microsoft, Wal-Mart, Nike… Legal/Ethical SCM Issues 05
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Logistics Environmental issues – pollution, landscape Manufacturing and Labor Related Issues Hiring practices – Hiring illegal workers, Children, Wages, Race,  Sex, Religion… Work conditions – Safety, Health, Hours, Labor unions
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M08 SociallyResponsibleSCM STUDENT - Module 08 01 Socially...

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