Corporate Social Responsibility in International Supply Chains

Abstract

Globalization has opened up a vast field of opportunity and significant cost advantages in production from a business perspective by distributing manufacturing operations as well as services all over the globe. The bedrock for these advantages, however, has often been lax labour and environmental standards as well as unsustainable financial and tax practice. To an increasing extent, such behaviour fails to correspond to societal expectations towards businesses concerning their responsibilities in terms of human rights and environmental protection, broadly described as their Corporate Social Responsibility (CSR). This chapter gives an overview over the development of the concept of CSR, pointing out its implications for international Supply Chain Management (SCM), and offers guidance on how businesses can implement operational CSR practice along their supply chains. The chapter also highlights how CSR-oriented international SCM contributes to sustainable international business development by enhancing transparency, reliability and control of risks across borders.