The Importance of Supply and Supply Chains
Making something that is in high demand by society or a particular person available is the process known as supply. Supply chains, on the other hand, are the crucial ties connecting a company's input and output. Prior to now, the key supply chain concerns included making sure deliveries were made on schedule, minimizing costs, and speeding up shipments to enable better reactions to business hurdles. Contrarily, sustainability is the capacity to continue at a specific rate or level, so it is necessary for a business or organization to manage its resource base so that the established standard of supply may be preserved in the future (Wilhelm, 2016). Therefore later on this paper, we will illustrate how sustainability of supply chain is vital for the growth and development of an organization.
The Relationship Between Social Responsibility and Supply Chains
However while producing and supplying your products to the consumers it is important to take note that social responsibility is key to creating a favorable consumer-producer relationship. Social responsibility is the concept in which an organization should balance between profit-making actions and actions that profit the public, which entails developing organizations with affirmative relationships to the society that they function. Therefore, in order for a business to prosper, there must be a staunch relationship amongst sustainability, social responsibility, and supply chains. This paper will clearly show how they relate and the benefit of both sustainability and social responsibility in supply chains.
The Significance of Social Responsibility
As seen earlier, social responsibility implies that organizations have an obligation to fulfill the interest of the people within their locality. The majority of the successful organizations make social responsibility a fundamental part of their plans. Some business organizations may choose social responsibility as a profit venture to benefit the organization. The idea of social responsibility motivates stakeholders to invest and also the consumers to buy the organization's products or services. Changes in the actions of customers whose knowledge in social responsibility issues increase make one objective for organizations to implement social responsibility. This results in a good image for the particular organization. Generally, social responsibility becomes operative when an organization does it voluntarily without being compelled to do so by the state laws. It enhances the organization morale, especially when the organization employees are involved in the social activities. Research shows that consumers prefer goods from organizations engaged in undertakings associated with social responsibility. Despite the category an organization runs, for it to remain competitive, it should define its own social responsibility policies and strategies its relevant undertakings.
Social Responsibility in Supply Chain
Social responsibility in the supply chain consists of different but interrelated roles and activities. The most important ones include customer services, warehousing, resource management, internal and external transportation, logistic service provision among others. The main areas of social responsibility in supply chains include environmental practices, organizational practices, moral practices, health and safety practices. Social responsibility activities should be carried out through the supply chain phases i.e. from raw material procurement to the supply of the good to the consumers. In respect to the environmental practices, social responsibility can be elaborated when an organization does all its procuring activities according to the social responsibility principles set (Schaltegger, 2014). An example is when an organization observes the applicable environmental standards in the process of procuring raw materials, extending the social responsibility concept to the suppliers. This may include preference of recycled materials. Manufacturing goods in ways that are not hazardous to the environment and the people around. Socially responsible practices in the transportation sector comprise giving chances to local transport companies, obeying traffic rules and effecting mechanisms that improve welfare and security in the transport sector for the benefit of both the organization and the society. Social responsibility in the packaging sector of the supply chain requires organizations to put in mechanisms that minimize the hazardous effects of the packaging material on the environment. Social responsibility in packaging involves the use of non-hazardous, recycled reduced energy consumption and the plan be in a way that does not destroy the environment. In warehousing, social responsibility comes in place from the site selection and the location for the warehouse. Other than providing good and safe storage for goods, the warehouse should not be a threat to the environment and the society, this is applicable where the warehouse is used to store hazardous goods.
The Significance of Sustainability in Supply Chains
However, there are some concerns on the whole issue of social responsibility within an organization. Not everyone believes that organizations should have a social responsibility in the growth and improvement of their investment. Some, such as (Pagell, 2014) state that social responsibilities for organizations are notable for their logical slackness and lack of precision. He believes that only individuals can have a sense of social responsibility. By their nature, organizations and businesses cannot have a sense of social responsibility. Some specialists believe that social responsibility favors the idea of being in business which is profit. Sustainability also comes in for a complete supply chain. Sustainability involves living and functioning ways that easily integrate into the existing eco-friendly and economic and social requirements without affecting the welfare of future generations. This is of importance for the supply chain, which is required to make a substantial contribution to sustainable development and hazard minimization. This is increasingly becoming vital for any organizations aiming at increasing their profits.
Conclusion
In conclusion, with the influence of growing competition, changes in technology, organizations trying to maintain their status in the market and to maintain a sustainable development are gradually inclined to apply social responsibility activities. As organizations adopt environmental and social activities, they can attain profits by reducing costs, improving the organization's status. However, for successful supply chains in an organization, there is a need to increase their own consciousness and work in a socially and sustainable manner. Furthermore, they are required to observe the environment laws, to meet both national and international standards. However, there are still some limitations and doubts about the success of social responsibility and sustainability in the supply chains in different organizations and cultures.
Reference
Wilhelm, M. M., Blome, C., Bhakoo, V., &Paulraj, A. (2016). Sustainability in multi-tier supply chains: Understanding the double agency role of the first-tier supplier. Journal of Operations Management, 41, 42-60.
Schaltegger, S., & Burritt, R. (2014). Measuring and managing sustainability performance of supply chains: Review and sustainability supply chain management framework. Supply Chain Management: An International Journal, 19(3), 232-241.
Eriksson, D., &Svensson, G. (2015). Elements affecting social responsibility in supply chains. Supply Chain Management: An International Journal, 20(5), 561-566.
Pagell, M., & Shevchenko, A. (2014). Why research in sustainable supply chain management should have no future. Journal of supply chain management, 50(1), 44-55.
Eriksson, D., &Svensson, G. (2016). The process of responsibility, decoupling point, and disengagement of moral and social responsibility in supply chains: Empirical findings and prescriptive thoughts. Journal of Business Ethics, 134(2), 281-298.
Yawar, S. A., &Seuring, S. (2015). Management of social issues in supply chains: a literature review exploring social issues, actions and performance outcomes. Journal of Business Ethics, 1-23.
