A- Some important points of Purchase Socially Responsible (PSR)
The socially responsible purchasing process is according to Carter’s divided in six variables. The six variables are as following: environment, diversity, human right, philanthropy, safety and two reverse coded dimension of ethics.
According to various authors, purchasing is placed in an advantageous position for environmental activities for the company and environmental friendly purchasing is positively related to a company’s performance, ( Carter, Curtis & Grim 2000 ) as well as for the companies that supply those organizations as CSR is also important in the suppliers channel and relates to the overall success …show more content…
The PSR can also see as a competitive advantage for company to use it. Purchasing is a key boundary spanning function to improve CSR, so we can speak again of PSR (Paulraj & Blome 2013). It’s confirmed by various studies that the role of purchasing function is changing regarding the corporate social responsibility. ( Mont & Leire)
As mentioned before, it is a very important activity in a company and for its sustainability. The implementation of socially responsible purchasing is increasingly more important and is encouraged by organisations such as Economic Co-operation and Development (OECD). ( Mont & Leire ) This organization has committed itself to encourage green purchasing in their administration on a national, regional and local level. (Guenther, Hueske, Stechemesser and Buscher 2013).
“Ignoring the demands and needs of sustainability will create a competitive disadvantage for firms, which will eventually reduce their potential to create profits (Hicks, 2010)” (Quisenberry, WL 2012).
So in essence, the argument that firms must abandon the focus of profits in order to implement sustainability is also flawed in the sense that, sustainability is a must for firms to continue to realize profits in the future, so it is a contributing factor to revenue/profit …show more content…
(Carter & Jennings, Asif salam 2008)
A second point that can be noted is that PSR comes with criteria, which the organisation of a company has to take into account.
In some articles it can be found that academics mention that there are 6 points of PSR; environment, diversity, human right, philanthropy, safety and two reverse coded dimension of ethics (Carter & Jennings).
To improve PSR regarding the point of view of Carter & Jennings, points that should be focused on and which are positively related are: people orientation organisational culture, top management leadership, top management leadership to a people oriented organisational culture, employees initiatives, individual values of purchasing employee, government regulation and customers pressures for social responsible product. These points are determinants of PSR (asif salam). Other strong determinants of PSR are customers demand, personal conviction and moral obligation (Hietbrik, Berens and Van Rekom 2011). A point they all agree with is that it is most important to choose the good supplier that respects the corporate social