Corporate social responsibility in Asian supply chains

Abstract

This research provides an overview of CSR practices in Asia, evaluates the usefulness of codes of conduct, reviews the benefits of CSR in supply chains and reviews obstacles for companies wishing to adopt good CSR practices. In order to achieve this, interviews were undertaken with CSR managers, factory managers and other experts, conducted in confidence and anonymously. Codes of conduct and associated inspections and audits are common practice but in most cases flawed. Labour issues and the rights of workers are generally seen as the most important aspect of CSR in the region. Benefits of CSR include risk reduction, staff recruitment and retention, cost savings and building good relationships with stakeholders. Obstacles include a lack of resources and skills, a lack of awareness of stakeholders' demands and inefficient production techniques. It is noted that larger firms are more able to overcome such obstacles, with clear adverse implications for smaller companies. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.