Article2011

The implementation of social responsibility in purchasing in Hong Kong/Pearl River Delta

28 citations0/0 files storedStrategic Outsourcing An International Journal

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Global trade, sustainability, and social impact Corporate Social Responsibility Reporting Sustainable Supply Chain Management

Abstract

Purpose In response to stakeholder concerns for social responsibility in global supply chains, companies have implemented codes of conduct in outsourcing activities. The purpose of this paper is to examine empirically how a multinational buying office implements its social responsibility and the codes in purchasing activities in the Hong Kong and Pearl River Delta (HK/PRD) region. Design/methodology/approach This paper reports a case study that reviews the experience from three sourcing projects of a multinational buying office in the HK/PRD region. This company has successfully adopted purchasing social responsibility (PSR) practices for years. Findings The results show that the environment, ethics, health and safety, and human rights are more important than diversity, community, and financial responsibility in PSR practices in the HK/PRD region. The benefits of adopting PSR include reduced operating costs, enhanced brand image and reputation, increased sales and customer loyalty, increased productivity and quality, increased ability to attract and retain employees, and risk management. The challenges include the cost of compliance, communication with uneducated workers, conflicts among different codes of conduct and sub‐contracting. Research limitations/implications The paper reflects the recent PSR situation in the HK/PRD region, primarily giving new insights for future research. Originality/value The paper provides empirical evidence on PSR implementation in the HK/PRD region, proposing seven core/non‐core dimensions of PSR and identifying the benefits and obstacles to its implementation. The paper provides academic and managerial guidelines for implementing PSR practices in the HK/PRD region.

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References

1984Case Study Research: Design and Methods 2007The Social Responsibility of Business Is to Increase Its Profits 1991The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders 1995A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance 2001Corporate Social Responsibility: A Theory of the Firm Perspective 2007Why would corporations behave in socially responsible ways? an institutional theory of corporate social responsibility 2008“Implicit” and “Explicit” CSR: A Conceptual Framework for a Comparative Understanding of Corporate Social Responsibility 1997The Company and the Product: Corporate Associations and Consumer Product Responses

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