The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Monday, February 2, 2015

Strategic CSR - Supply Chain

The article in the url below contains advice for companies on how to generate more responsible supply chains. In particular, the article argues that, although an effective compliance program must be part of this effort, a compliance-alone approach is insufficient:
"Some of the best approaches come from those big companies that realize they can only do so much employing a policing approach."
Essentially, the article argues that, in order for real results to occur, firms need to be genuinely committed to improving their supply chain practices:
"That means working with suppliers on more training and capacity building, and dealing with the root causes of problems in a community rather than the symptoms that manifest themselves in labor abuses or worker safety issues."
In effect:
"It is too simplistic for companies truly committed to reforming their supply networks to declare a zero-tolerance policy and pull out once problems arise."
It has long been the approach of Strategic CSR that mandated compulsion is insufficient to generate the scale of changes we need to see at the speed with which we need to move. It is only when firms understand the strategic value of CSR—that is, they understand that their self-interest is embedded in working towards sustainable value creation, that change on a sufficiently broad basis will occur.
Take care
David Chandler & Bill Werther
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The Morning Risk Report: Compliance Not Enough to Sanitize Supply Chain
By Ben DiPietro
September 5, 2014
The Wall Street Journal