Corporate Social Responsibility on Global Construction Supply Chains

Abstract

The role of the corporation has shifted in a way that the public has come to expect more ethical accountability of business operations and responsibilities that branch beyond legal and economic responsibilities. However there is a lack of research that acknowledges how the international procurement of materials by construction companies exposes construction supply chains to ethical risks that may be attributed to the purchasing company. There is a need to consider the extent to which companies are responsible for the impact of their purchasing decisions upon international suppliers and if it warrants corrective action through corporate social responsibility. This paper answers this question and suggests a method by which construction companies may ascertain their responsibilities owed, formulate policy and implement their initiatives. It was found that the connected nature of the supply chains necessitates construction companies to analyse the extent of their influence in order to ascertain the level of responsibility. Strategies such as stakeholder management and strategic analysis are appropriate for companies to identify CSR policies whilst companies may enact their policies using codes of conduct. With high levels of public scrutiny and a reputation of social and environmental degradation the construction industry needs to consider how its actions impact external stakeholders such as international suppliers. This study therefore aims to outline a method by which construction companies can procure international supplies with due responsibility and accountability.