The Role of Ethical Supply Chain Management in Corporate Social Responsibility

Consumers these days are well aware about activities of various brands. Which is why, they prefer if the brands they support are responsible corporate citizens. However, all of this fades away if the consumers find out, that they are being incriminated in violation of human rights, unethical practices and environmental degradation by the companies because their supply chains are not managed responsibly.

What is Supply Chain Management?

Supply chain management deals with how businesses turn raw materials into finished products. This includes all the processes occurring such as transportation, warehousing, packaging, and distribution of those products to consumers. With increasing climate issues, suppliers take responsibility to not harm the environment, such as regulating their waste and gas emissions production while complying with governmental regulations and increasing their profits. Taking up responsibility of only working with suppliers that follow such ethical guidelines and ensuring that the existing suppliers also adhere to it, constitutes corporate social responsibility through supply chain management.

Environmental Responsibility in the Supply Chain

Environmental responsibility in supply chain includes taking steps to minimise waste generation and pollution while also working towards a sustainable future for all. Companies can purchase and use recycled materials for packaging. It can also purchase technologies that are more energy efficient and produce lesser waste. Another environmental factor is making sure the suppliers implement sustainable processes by setting standards that should be respected and implemented. Suppliers can also be trained on environmental protection to ensure they understand the importance of sustainability. In addition, having a team that can track the company’s environmental footprint to gather information can help the company plan better for its future.

Philanthropic Responsibility in the Supply Chain

Companies need to come up with goals to maximise their positive social impact. The supply chain does not only involve suppliers, vendors, or workers but also communities. As a company, it is important to actively show support to global and local initiatives that address socially critical issues such as racism, education, equity, and affordable health care (or to nonprofit organizations that do) to strengthen the bond within the community where they operate. Also, supply chain management can support sustainable development projects in local areas but also offer scholarships to students studying majors related to sustainability or the supply chain that support the UN Sustainable Development Goals and help to enhance human rights.

Another way to incorporate CSR into business practices is by volunteering time to nonprofit organisations, increasing employee engagement. Because work can be stressful, it is important to create experiences where people’s needs for accomplishment and personal interests are met with humanity’s needs; it helps to increase job satisfaction, bringing greater pride to one’s self and to the company.

Ethical Responsibility in the Supply Chain

To improve ethical responsibility, supply chains should ensure all suppliers or vendors conduct fair labour practices. Companies should build on treating everyone with dignity and respect and offer equal employment opportunities. Being ethical means to be fair, honest, and having morals. Supply chain workers deserve to be heard and accepted in their workplace.

In order to implement CSR in the supply chain, companies should emphasize having procedures in place to assure health and safe working conditions for their workers and suppliers. These include offering health and safety training to everyone, providing legal rights so they can speak up in case any injustice is observed.

It also means having a team of experts who monitor any violation of the company’s code of conduct such as forced labor, child labor, unpaid overtime work, abuse, and sexual harassment within supply chain operations and act accordingly. In addition, the value of more diverse and inclusive corporate supply chains should be encouraged. It also means increasing the number of managers, suppliers, and recruiters from underrepresented communities in supply chain management.

Economic Responsibility in the Supply Chain

Economic responsibility involves making financial decisions while contributing to the environment and society. This can include committing to providing a fair and transparent salary to all employees or investing in renewable energy. It can also mean spending money for a positive long-term impact such as investing in educational programs or more sustainable suppliers.

Many consumers respond well to brands that are known to be environmentally friendly. Even though it is a collective battle, companies play an important role in encouraging sustainable initiatives, and there is still a need for improvement within CSR. With growing environmental concerns, more companies are searching for new practices to change their business model so they can show transparency with respect to the environment, their customers, and their employees.

Conclusion

The supply chain is an integral part of most businesses and is essential to company success and customer satisfaction, so it is also important to consider whether all suppliers, all workers, and other companies in the supply chain implement CSR activities and practices.