Strengthening Implementation of Corporate Social Responsibility in Global Supply Chains

This report claims that progress has been made in applying environmentally and socially sound policy in supply chains in recent years. However, current efforts are insufficient and will not lead to long-term improvement. It identifies three key challenges to improved implementation of environmental and social codes of conduct:

1. “The plethora of individual buyer corporate social responsibility (CSR) codes is now generating inefficiencies and confusion.” The report suggests the need to readjust and fine-tune the present system of implementation. It accepts the view that codes of conduct are an essential tool in the pursuit of better social and environmental conditions, and therefore does not question the trajectory, but rather calls for a need to adjust it and make it work more efficiently, possibly by promoting increased standardization of existing principles.
2. “An increasing number of buyers are recognizing that traditional top-down CSR strategies are not achieving improved CSR implementation.” In contrast to the first, this second statement does question the established implementation process. It casts doubt on whether the present system, being driven by buyers from a distance, will ever be able to generate the desired out comes in terms of sustainable compliance and improved working conditions. Is fine-tuning required, or an entirely new approach?
3. “[Suppliers] have an insufficient understanding of the business benefits associated with making the required investments in CSR.” This statement addresses a key premise for any business activity, that is, the need for a perceived business case.

The report assesses the validity and importance of these challenges, as well as others raised by study participants. It also presents options for future progress.