The impact of corporate social responsibility on supply chain

Abstract

In today’s business world, growing attention is being paid on the business concept; “Corporate Social Responsibility “mostly because of environmental concerns, regulatory impacts, commercial benefits and reputation in front of the society. Increasing number of companies initiates and implements practices considered as CSR activities. Concept of Corporate Social Responsibility (CSR) has been first introduced by Bowen (1952) and states that while implementing strategies and making their decisions, organizations should act taking into consideration society’s values. In this respect, Carroll (1979) defined CSR as sensitivity of an organization about the stakeholders’ expectations on the management of social, environmental, economic, ethic and legal issues. Towards the end of 1980s, concept of sustainable development has been introduced and has focused on economic, social and environmental factors that organizations should consider. Sustainable development emphasizes how today organizations can fulfill their needs without Jeopardizing the needs of the future generations. Therefore, MNCs interested in a green supply chain should be attempting to cut their transportation carbon emissions and those of their suppliers. This can be accomplished by using biofuel, choosing the type of transportation with the least carbon foot print (trains and ships), utilizing smaller trucks when possible, and encouraging fuel efficient driving behavior by employees.