Buyer-Supplier Relationships Essay examples

2005 Words 9 Pages
Globalization has resulted in broadened relationships worldwide. These connections have created challenges for organizational leaders. The concept of liability extends far beyond customers and suppliers; organizations have become responsible for worldwide social welfare and the environmental impact of operations. Within integrated supply chains, managers have looked across traditional boundaries to interfirm relationships to manage risk and advance corporate social responsibility (CSR) requirements, such as sustainability.
The buyer-supplier relationship connects companies through supply chains. Purchasing managers create a link between the internal functions and the external stakeholders of a firm (Carter & Jennings, 2004). It
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44). Understanding the associations between the foundations of economic/industrial development, the environment, and societal interrelationships is critical to achieving sustainable development (Hutchins & Sutherland, 2008; Seuring & Müller, 2008).
Third parties can categorize firms as sustainable and list them with sustainability indices such as the Dow Jones Sustainability Indices (DJSI), which tracks financial performance of sustainability-focused firms under several categories, using economic, social, and environmental criteria evaluated against public information (Dow Jones Sustainability Indexes, 2009). Firm leaders can also identify their own firms by submitting sustainability reports to the Global Reporting Initiative (GRI), an organization with the goal of advancing disclosure regarding economic, environmental, and social performance reporting (About GRI, 2007). Companies can also join with the Sustainability Consortium , which focuses on sustainable supply chain issues and reporting transparency (The Sustainability Consortium, 2010). Even though each group collects information in different ways, all focus on social responsibility and sustainability policies. Much of the information relates to buyer-supplier relationships where corporate social responsibility initiatives are carried out in an

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