by Obella Marie D. Ronsairo and Francis J. Custodio, NOVEMBER 2021
In today’s business world, growing attention is being paid to the business concept; “Corporate Social Responsibility” (hereafter, CSR), mostly because of environmental concerns, regulatory impacts, commercial benefits, and reputation in front of society. The increasing number of companies initiates and implement practices considered as CSR activities.
Even though the term “CSR” includes the word “corporate”, CSR covers the issues related to both social and environmental matters. On the other hand, CSR practices cannot be considered distinct and even should be integrated into other organizational strategies or activities. Another important issue is that CSR practices are mainly based on the principle of volunteering. That is why those practices should be carried out by the participation of relevant stakeholders.
Companies have realized the crucial importance of the environment, started to adopt several strategies, and changed their ways of doing business. From the environmental perspective, those companies involve environmental issues as an important part of social responsibility. Especially when it comes to managing supply chains, it becomes also important to consider whether all suppliers and other companies in the chain implement CSR activities and practices. All companies including suppliers take responsibility to not harm the environment, to reduce waste and pollution, to control gas emissions, and to comply with governmental regulations whilst at the same time reducing their cost and increasing their profit.
Supply Chain Management is a process comprised of several distinct but interconnected functions and activities. Internal and external transportation management, warehousing, inventory management, acquisition management, logistics service providers management, resource management, packaging and assembly, customer services are among the most important ones. It is also possible to break down the supply chain management process into two main flows, i.e. forward flow and reverse flow.
Green Supply Chain Management (GSCM) can be defined as reflecting a company’s consideration and sensitivity about environmental issues to all other supply chain processes. GSCM also assures that companies consider not jeopardizing the environment in all supply chain functions.
Companies usually perceive the GSCM practices as factors that increase the cost in general. However, research has yielded that GSCM practices help companies to reduce general costs, increase productivity, foster innovation, save resources and increase competitive advantage. Besides those tangible benefits, GSCM practices also play important roles in increasing employees’ job satisfaction and commitment, promoting customer loyalty and pleasure, enhancing their reputation in the eyes of society.
Social responsibility in procurement and purchasing can be defined as performing all purchasing activities following the CSR principles and taking into consideration CSR principles in the decision-making process. If a company complies with the relevant standards on environmental issues and involves its applications in the processes, procurement, and purchasing processes can be important activities to spread the CSR concept to the suppliers. Thus, future research should specifically focus on empirical studies to further contribute to how social responsibility can be more effectively and efficiently integrated into the functions and the processes of the supply chains.
About the writer:
Obella Marie D. Ronsairo. Loves to feature life and see the beauty of every side of the stories. Have been with the newsletter team for almost two years since becoming part of the MPTSouth family. Gained a lot of fun, experience and knowledge through this growing team and helped her to develop more of her skills in writing and creativity.
Francis J. Custodio. Is a Industrial Engineer who loves to think outside the box. Also like the saying “Work Smart not Hard”. Always curious and that curiosity led him to join the Southlink Newsletter. Loves to know “what make things tick”.