Csr Comapny Details Essay

8920 Words May 10th, 2012 36 Pages
387

From supply chains to value chains:
A spotlight on CSR
Malika Bhandarkar and Tarcisio Alvarez-Rivero*
1. Introduction
Corporate social responsibility (CSR)1 has become a hot topic in boardrooms across the world. Changes in corporate value systems are being driven by pressures from different actors, including governments, consumers, non-governmental organizations (NGOs) and institutional investors (diagram 1).
Multinational corporations (MNCs) have operations spread across the globe, relying on both foreign affiliates and arm’s-length suppliers arrayed along global supply chains, many of which encompass developing countries. What then does the growing CSR movement mean for developing country producers? The chapter addresses
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Multinational firms have created a new global economic space, sourcing products from farflung global production networks and supply chains (Palmisano, 2006), and
CSR advocates argue that MNCs ought therefore to be accountable not only to their shareholders but also to the communities that are affected by their decisions and transactions with suppliers wherever they may operate.
Simultaneously, companies are finding business value in increasingly engaging in community programs across the world, as larger shares of their revenues and profits are earned from international operations.

2. CSR in international supply chains
With globalization of production networks, corporations have to extend the reach of their CSR policies not only to their overseas subsidiaries but also to suppliers over which they have varying degrees of operational control. The magnitude of the challenge involved in promoting CSR within MNCs and along their supply chains is illustrated by the fact that there are over 63,000
MNCs with over 800,000 subsidiaries multiplied by millions of suppliers and distributors (UNCTAD, 2001).
For developing country firms, the challenge is how to use CSR to competitive advantage, avoiding the risk that weak CSR practices exclude them from global supply chains. CSR is a considerable investment for small and medium-sized enterprises (SMEs) but at the same

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