Socially responsible supply chain management for a competitive advantage

Abstract

Supply chain operations create a multitude of social and environmental challenges for organisations. Many of these challenges have a significant impact on the organisation’s stakeholders. Any corporate CSR strategy must address these issues to ensure that all stakeholders’ needs are addressed. Organisations often view these CSR efforts through the prism of cost minimisation or risk avoidance. Many of these activities, however, can add value and enhance a firm’s competitive position in the marketplace. Value-added initiatives can be justified in any organisation, even those that have no stated altruistic or social goals. This chapter’s missing link focuses on these value-added CSR strategies that can provide a competitive advantage for an organisation. Specific strategies to address the missing link include supplier development, local sourcing, collaborative distribution, closed-loop supply chain design, and increasing operational efficiency.