How Can Supply Chain Businesses Play Their Part in CSR?

 

In recent years, businesses of all shapes and sizes have acknowledged their impact on the environment giving equal if not more attention to Corporate Social Responsibilities as profits. This also includes the supply chain industry and connected businesses.

When was CSR Introduced in the Corporate World?

The growth of big firms in the late 1950s gave CSR momentum. In the 1980s, Peter F. Drucker and others wrote extensively on the topic as it gained popularity. Following the financial crisis of 2008–2010, CSR once more became a key factor in assessing company conduct.

The first thorough examination of business ethics and social responsibility was Howard Bowen's Social Responsibilities of the Businessman, published in 1953. It is regarded as the foundational text on CSR by many professionals. Despite being published more than fifty years ago, it is frequently acknowledged for its applicability to current issues with business ethics.

CSR, sometimes known as the ‘triple bottom line’—for people, the environment, and profit—is becoming more popular. The fact that more businesses are opting to report on CSR activities and the booming cottage sector that offers a range of CSR-related certifications serve as evidence for this.

Why CSR is so Important?

There are several factors that force businesses to explicitly concentrate on CSR and environmental applications. Within those principle applications, The crucial ones are laws and policies that turn CSR into compulsory implementations.  Another significant consideration is the potential financial costs the organisations that ignore their social and environmental obligations may incur.

Companies have now come to terms with the fact that they must adapt sustainable practices and play their part in protecting the environment. This has, in fact, become so crucial that many companies only keep the environment as the focus of their CSR activities.

What is CSR in the Supply Chain business?

The whole business of supply chain management is a system of controlling the flow of goods from suppliers to customers. It can often also involve procedures that convert raw materials into finished commodities.

Supply chain management companies should be mindful of their social duties in the areas of human rights that can include working conditions, child labour, occupational health and safety, sustainable production and practices as they apply to the sector.

As part of their additional social responsibility companies must also ensure compliance with all applicable laws governing labour and other aspects of employee welfare.

These can include record-keeping requirements related to workplace injuries and deaths; regulated compensations for such incidents, laws governing hours worked, state set minimum wage rates, and everything else that’s relevant to the specific sector.

Supply chain companies can also play their part in the protection of the environment by putting forth the efforts to reduce pollution through controlling gas emissions. Additionally, they can makeit a point to network and conduct business with companies that are not causing any harm to the environment, directly or otherwise.

Corporate Social Responsibility: Areas of Focus for Supply Chain Companies

These categories illustrate the areas where challenges are most likely to arise as a result of the negative impact of business activity, and where stakeholders should focus on.

Human & Labour rights

●       Preventing forced labour

●       Working to prevent inhumane treatment

●       Prevent child labour

●       Keeping track of worker hours

●       Preventing underpaid labour

●       Upholding the right of association

●       guarding against employment discrimination

Environmental Security

●       Pollution control and reduction (Adopting the necessary steps to get rid of trash and lessen/prevent soil, air, and water pollution.)

●       Measures to lower greenhouse gas emissions

●       Renewable energy and resources

Security and Hygiene in the Workplace

●       Equipment safety measures

●       Workplace safety and hygiene measures

●       Employee health management

●       Employee facilities safety, and sanitation (cafeterias, etc.)

●       Measures to avoid occupational illnesses and injuries

Controlling the Quality and Safety of Product

●       System for enhancing and sustaining quality and safety control

●       Accurate product and service information

Measures to Combat Corruption and Fair Trade

●       Preventing acts that restrict competition, bribery, and corruption

●       Preventing the exploitation of a dominating negotiating position

●       Preventing improper payments and favours.

Information Sharing, Monitoring, and Protection

●       Timely disclosure of any issues involving the five areas above (maintaining transparency)

●       Defences against hackers and computer viruses

●       Preventing leaks of sensitive information about consumers and other parties

●       Preventing breaches of private information

Steps for Implementing CSR

Business that are directly involved with supply chain management must put policies into place and start initiatives in the areas of economic, environmental, and social concerns.

They can adopt a number of techniques, such as creating written logistics standards, keeping tabs on the performance to ensure the requirements are being met, and continually raising understanding of social and environmental concerns.

Businesses should clearly communicate their CSR policies to their partners, customers, and all other stakeholders involved, so that everyone understands what is expected from everyone else. CSR policies should also be posted on a company website for easy access.

All stakeholders must know that they are accountable for meeting the set CSR standards in order to continue to develop their business relationships with your company.

How Can Supply Chain Businesses Play Their Part in CSR?

One CSR element that is significantly affected by supply chain activities is quality management. Businesses need to keep a close check on their quality management efforts due to stringent quality requirements as there are plenty of alternatives available to customers. To bring the highest-quality product to the market, businesses must identify areas that require improvement, inspect and audit facilities, and identify and resolve problems.

LECITEIN has been focused on achieving that since its inception. The core focus of our business is to provide sustainability to all our partners. That’s why we have always adhered to strict corporate social resposibility protocols from the start. To learn more about our CSR policies, mission, and vision, check out the Corporate Social Responsibility section on our website.