Social Responsibility

in
Supply Chain
Management
Nikki Bliven
Lauren Jones
Tara Tjaden
Josh Pine
Nicole Kenney

Social Responsibility:

A framework of measurable corporate

policies, procedures, and resulting
behavior that are designed to benefit
the workplace and, by extension, to
benefit the individual, the organization,
and the community in terms of
community, diversity, environment,
ethics, financial responsibility, human
right, and safety. -ISM

Why SR is becoming an
Issue

New Government Regulation

Take

Back Laws
Lead in Computers
Hazardous Waste
Increased

Community Awareness

Sweatshops
Child

Labor

Why SR is important in SCM

Increased

Retention of Employees
Increased Productivity and Quality
Enhanced Reputation and Image
Reduces Operating Costs
Creates Long Term Value
Anticipates Challenges
Reduces Risks

7 Principles of Social
Responsibility

Institute

for Supply Management

(ISM)
Not-for-Profit

association founded in 1915

Includes more than 40,000 supply
management professionals
Promotes standards of excellence, research,
promotional activities, and education
Created

the 7 principles in 2002

Community

Provide support and add value to

communities and communities of your
supply chain
Encourage members of supply chain to
add value in their communities

Ex. Wal-Mart and Sams Club

Diversity

Promote purchasing from and the

development of socially diverse suppliers
Encourage diversity with in your
organization
Promote diverse employment practices
throughout the supply chain

Ex. Apples Supply Diversity Program

Environment

Encourage your own organization and

others to be proactive in examining
opportunities to be environmentally
responsible within their supply chains
Encourage Environmental responsibility
of your suppliers
Encourage environmental development
within company

Ex. Herman Miller

Ethics

Abide by your organizations code of

conduct
Awareness of ISM principles
Awareness of Ethical SCM conduct

Ex. Nike

Financial Responsibility

Become knowledgeable or, and follow,

applicable financial standards and
requirements
Promote and practice responsible financial
behaviors at all levels of supply chain
Apply sound financial practices and ensure
transparency in financial dealings

Ex. Enron

Human Rights

Dignified and respectable treatment of others

Support and respect the protection of
international human rights within the
organizations sphere of influence
Encourage your organization and its supply
chain to avoid complicity in human or
employment rights abuses

Ex. HP

Safety

Promote safe environment for

employees and supply chain

Provide a definition of safe for your organization

Support continuous development and

diffusion of different safety practices
within your organization and your
suppliers
Ex. HP

Benefits of SR

Customers

They are given preferred status to those

suppliers that have solid policies and
procedures in places around social
responsibility

Investors

Investors are finding that companies with

socially responsible core values, policies
and procedures

Steps to Implement a
successful SR Plan

Look Internally
Define Your Code of Conduct
Map the Process
Make Sure Each Relationship Fits With Your
Strategy
Have a Monitoring Mechanisms/Technology In
Place
Train Your Buyers and Be Consistent in How
They Are Compensated.
Communicate Your Code to Your Suppliers

Conclusion
Companies

that are socially responsible

are ones that comply with laws and
regulations while increasing their
reputation.
This reputation is achieved by enhancing
the well-being of all stakeholders,
increasing profitability and customer
satisfaction.

Sources

Apple.com
Boyd, D.; Spekman, R.; Wehane, P. Corporate Social
Resoponsibility and Global Supply Chain Management: A Normative
Perspective. (June 2004) Apr 25, 2006.
Http://sscn.com/abstract=655223)
HermanMiller.com
HP.com
ISM Committee. SocialResponsibility and the Supply Management
Profession: A Baseline Study. Apr. 25, 2004. Apr 25, 2006.
www.ism.com .
Nieves, Anthony. Why Social Responsibility Matters. Sept 2004.
Apr 23, 2006. www.scmr.com .
Roberts, Julie S. Inside Supply Management. May 2004. Apr 25,
2006. www.ism.ws .
WalMartfacts.com