Tatsat Chronicle Magazine

How Corporate Social Responsibility (CSR) helps to strengthen supply chain connections

October 16, 2021

Today’s business sector is increasingly focused on the concept of “Corporate Social Responsibility” (hereafter, CSR), owing to environmental concerns, legal implications, commercial rewards, and public perception

According to Forrester Consulting, tech corporations were among the early promoters of corporate social responsibility (CSR) initiatives, but businesses in general lack official performance targets and standards. Top roadblocks to advancement include the inability to accurately assess individual suppliers and measure overall supply chain performance. CSR’s reach has expanded beyond the environment, according to the study, to encompass fair trade, ethical employment, corruption prevention, and more.

“We wanted to look at the overall condition of CSR, what the action objectives are, and what is and isn’t working,” said Alex Saric, chief marketing officer for Ivalua, a procurement software provider that sponsored the Forrester analysis. “We discovered that objectives and approaches differ from company to company, and that there is still a lot of work to be done.” With 33 percent of respondents’ organisations defining sustainable policies, sustainability is a major priority. Priorities in terms of social and ethical values are close behind but still trail. According to Saric, high-tech is ahead of the pack when it comes to promoting diversity in business, social justice, and carbon emissions. The industry’s sustainability efforts have been directed by a slew of environmental standards, ranging from lead-free components to forbidden compounds to e-waste recycling. Electronics OEMs’ clout has waned as well.

“The larger firms are undoubtedly generating more development across industries,” Saric added. “While I believe many firms consider CSR to be a ‘nice to have,’ when you consider the size and branding of tech companies, they are a [CSR] target for competitors and evoke high consumer expectations.” When a company like Apple establishes supplier criteria, it carries a lot of weight.” CSR has gained traction, but there are no explicit targets or policies in place. Each CSR priority is viewed as vital by the majority of organisations.