Corporate social responsibilities

Topics

• Concept of stakeholders• Corporate social responsibilities• Promoting social responsibility in supply chain

management• Challenges• Opportunities • Strategies

Concept of stakeholders

Corporate social responsibilities

• Corporate social responsibility (CSR) is concerned with the ways in which an organisation exceeds its minimum obligations to stakeholders specified through regulation

• Consider the stakeholders of an organization– Who are they and what do they want?

Discuss

• Identify stakeholders of IBM

• Identify the corporate social responsibilities of IBM to its respective stakeholders

Environmental responsibilities

• More efficient use of raw materials in manufacturing operations– E.g. Timber, minerals– Demand for recycling

• Pollution and waste– Release of harmful substance into environment

• Energy saving– Reduce waste of energy (Page 668)

Discuss

• What are the environmental responsibilities of IBM and its suppliers?

Environmental purchasing policy1. Prepare environmental policy (Pg 670)2. Communicate the policy to stakeholders3. Prepare guidelines for employees and suppliers4. Appraise suppliers5. Incorporate environmental requirements into

specifications6. Adopt lifecycle approach7. Prepare guidelines for disposals8. Provide appropriate training9. Ensure regular audit

Screening suppliers

• Screening can be done via questionnaires• Compliance to international standards– E.g. EU eco standard– International Organization for Standardization

(IOS)– ISO environmental standards (14001)– Eco-management and audit scheme (EMAS)Page 674

IBM’s expectations

• IBM’s Supply Conduct Principles are integrated into contracts and relationship wit suppliers

• On-location assessments to the Code of Conduct

• Audit with suppliers by third party agencies (Refer to IBM brochure)

Discuss

• Suggest an environmental purchasing policy for IBM

• Suggest possible ways of screening suppliers by IBM

Ethical responsibility

• Prompt payment• Honesty and openness• E-ethics– E.g. balanced power of e-trading

• Courtesy to suppliers’ representatives• Business gifts and hospitalityPage 657 – 659

Discuss

• Suggest how IBM should conduct its business ethically

Promoting social responsibility in SCM

• Challenges• Opportunities• Strategies

Challenges

• Extend social responsibility across global supply chain

• Improve suppliers’ ability to meet social responsibility requirements

(IBM brochure)

Opportunities

• Assist suppliers to develop into world class providers

• Raising the management systems capabilities of suppliers and

• Sharing best practices with suppliers(IBM brochure)

IBM Strategies

• Identify patents of compliance and non-compliance through audits conducted in supplier locations globally

• Facilitate learning and capacity building programs

(Refer to IBM brochure)

IBM Strategies

• Chair the Electronic Industry Citizenship Coalition (EICC) to promote collaboration within the industry– Standardized industrial codes of conduct by EICC

• Include Supplier Code of Conduct in pre-sourcing activities

Discuss

• What are IBM’s strategies in promoting social responsibilities to suppliers?

Buy-supplier relationship

• Suppliers are to comply with buyer’s purchasing policy promoting social responsibility

• Suppliers are to join industry groups in conformity to standardized codes of conduct

Buyer-supplier relationship

• The buyer may assist suppliers to improve suppliers’ ability to meet social responsibilities– Facilitate learning and capability building

programs – Sharing best practices with suppliers

Buyer-supplier relationship

• IBM’s “Best practices” (IBM brochure)

Discuss• Describe how IBM corporate social responsibility

initiatives have affected buyer-supplier relationships (4 e)– State the importance of corporate social responsibilities in

business including buyer-supplier relationships– Describe how have its social responsibility initiatives affected

buyer-supplier relationships • Research IBM corporate social responsibilities • Consider: Environmental, ethics, etc

– Conclusion • Refer to page 655-676• Download the report 2007-2008 IBM corporate responsibility report at web: www.ibm.com