Are Supply Chains Maturing?

According to a CSRwire.com news alert, Supply chain sustainability is maturing. The traditional focus on social factors - such as forced labor and child labor, factory working conditions, overtime and sexual harassment - rightly continues to deepen in sophistication while simultaneously enhancing the focus on "green" considerations. And on top of this, supply chain sustainability is notching up to the next level of effectiveness by creating efficiencies through collaboration and connection.
Exemplifying these developments is the Australian Branch of GM. It is noted that they are "greening up" their entire supply chain by using computer monitoring to increase energy efficiency, and by reducing water consumption in 17 of their factories!
This is a great example, but I think it is to general of a statement to simply say that supply chain sustainability is maturing! There are very few examples of such large supply chain initiatives in US factories! It seems so simple to wire a computer system to monitor excess waste and energy. Hopefully GM's Australian branch will serve as a positive example for American companies.
Many people when they think of CSR, think of soley the corporation. But, supply chain management is so crucial because when the supply chain is put under "ecoscrutiny", all of the moving parts (which are substantial) are considered. Some of the parts of the supply chain are independently contracted and supply other companies as well. So, if part of the supply chain is eco-friendly and cares about what kind of social return their service provides, and contracts with a company that has not given the subject much consideration, this may have a positive impact on the number of corporations who become socially responsible in the long run.

The Navy and CSR?

This semester in Corporate Social Responsibility I have started to ponder about my future career in the military. I hear my peers talk about what the corporations that they will work for do for the community and even the world and wonder if the Navy does anything to positively impact social institutions and the planet.

Some consider the United States military to be the biggest corporation in the world. I see validity in this statement when evaluating the budget and and influence within the global community.

Upon further research, I came across articles like, "USS Tarawa Hosts Bone Marrow Drive," which was one of the largest and most successful bone marrow drive in the country (local). I also found " U.S. Navy Transports Bahraini Relief Aid to Earthquake Victims in Pakistan," which displays the Navy's scope of influence and ready deployment of aid when there are countries in need(international).

First Hand Look at a Country in Need

During my week long Spring Break vacation, I visited the island of Roatan, 40 miles off of Honduras. Honduras represents one of the 10 poorest countries in the Western Hemisphere with GDP per capita at $3,300 per year (2007).The economy has continued to grow slowly but the distribution of wealth remains very polarized with average wages remaining very low. It is estimated that there are more than 1.2 million people who are unemployed, the rate of unemployment standing at 27.9%.

Before exiting my cruise ship, an old woman warned me not to go out into Roatan because it was a "dangerous and poor discusting third world country." Instead, she reccommended that my friends and I enjoy the buffet on the ship and lay out on the deck. My friends and I decided to take our chances. When we first stepped into Roatan, there were beggars everywhere. Instead of doing a cruise sponsored tour of the island, we decided to take a local van to the beach. Driving through the island was beautiful and alarming, starkly contrasting the barefoot hungry people there were burgioning high income homes being built on the ocean.

When we arrived at the beach, I was shocked. It was the prettiest beach that I had ever been to in my life. The water was crystal clear, the sand alabaster. Soon after my entrance of awe, five beggars surrounded me trying to peddle me some knock-off sunglasses and shell bracelets. I became so overwhelmed because I felt bad for them but I did not have cash.

Lining this beach, there were yachts and signs professing homes on the ocean for $300,000 and up. The natives of this Honduran island are incredible poor (see figures above) and rich Americans are starting to invade and appear to not be helping the situation on the island. This situation reminded me a great deal about CSR class and made me think that companies who will start to take advantage of the islands growing tourist industry could help the island at the same time by hiring workers or improving their water, etc.

I hope to return to Roatan someday and hope that conditions on the island improve for its natives.

A Whole New World

Heigh-ho, heigh-ho, it s off to work we go.' It's difficult to imagine that the men and women sewing Disney-branded clothing in Haiti would be singing along to the familiar tune of Walt Disney's 'Seven Dwarfs'.

For my group's Wednesday presentation about globalization, I found a video online called "Mickey Mouse Goes to Haiti." This short film was a documentary in which the National Labor Campaign investigates one of Disney's 3,000 factories abroad and displays the injustices that seem to be a cruel part of the aftermath of globalization. In the film, one worker, wearing a mask to protect his identity, states "They don't treat us like human beings. The quota [of clothes to produce] is too much. When I go home I collapse. I ask God and the international community to speak up for the Haitian people.' Other workers speak of being trapped in debt all their lives just to survive. 'The day I get paid, the children still go to bed hungry,' says one.

Disney can afford to treat these people better! In 2001 alone, Disney grossed 25.3 BILLION in revenues and spend 49.1 million PER DAY in advertising!

When I discovered how the Disney company was treating it's workers around the world, I did not want to believe it! For me, Disney represents a fair and jovial company that is in the business of making children smile.

My father worked in Hollywood in the 1960's as a casting director for Walt Disney himself. When I told him about what I had uncovered about Disney around the world he told me that "Walt would turn over in his grave if he knew about this."

Spending as Morality

Some argue that "Shopping is more important than voting", and that the disposition of money is the most basic role we play in any system of economics. Some theorists believe that it is the clearest way that we express our actual moral choices, i.e., if we say we care about something but continue to buy from parties that have a high probability of risk of harm or destruction of that thing, we don't really care about it (and are practicing hypocrisy).

I believe this assertion to be very true. After all, much of Corporate Social Responsibility is due to increased profit margins for "ethical goods" and also mandates from consumers for more green options! I think that the consumer is often overlooked in the discussion about Corporate Social Responsibility. For example, if the Toyota Prius, it's hybrid model, had been ill-received from consumers and made virtually no sales, I would ascertain that production of such vehicles would have halted, at least temporarily. Another example of this comes from the growing and lucrative organic market. In the past, the main market for organic foods were what some people believed to be "hippies." Today, however, consumers are recognizing the importance of eating healthier due to the exponentially increasing number of obese people in the United States. Now, huge brands are starting to offer "organic options" that can even be found at regular grocery stores.

I think that the people should get more credit for social changes credited to businesses, because without the power of the purse, very little change could occur.

Coffee Breath Aided by "Green" Mints

A dimension of CSR that I wish to further analyze is the avid use of social responsibility by US multi-billion dollar industries. Often, because of their growing and almost parasitic presence in nearly every major city, these multi-billion dollar companies have been viewed as a nuisance that mutilate the business hopes of mom and pop counterparts.

Yesterday, while performing my morning ritual of adding milk and sugar to my coffee at one of 10 local Starbucks, I noticed a collection of pamphlets behind the sugar. One of them very clearly read "Social Responsibility: How is my Starbucks doing its part?" Inside the pamphlet, the reader is warmly greeted with; "Dear valued customers and neighbors,"it then states, "We are often asked how Starbucks went from a single coffee shop in 1971 to one of the most recognizable and respected global brands today. Delivering great coffee, exceptional service, and an uplifting customer experience have all contributed to Starbuck's success. Equally important has been our commitment to conducting business in a socially and environmentally responsible manner, a commitment that stems from Starbucks Mission statement and guiding principles."

Starbucks operates over 8,000 shops in 34 countries, each week serving 28 million customers.
Three new Starbucks branches open every day - its target is 30,000 stores, with sights set firmly on growth markets such as China. Not coincidentally, a survey carried out last month by Global Marketing Incite found that even Starbucks customers perceive the company as 'arrogant, intrusive and self-centred'. It is then, no surprise then that Starbucks has invested significantly in CSR activity.

Starbucks is very concerned with conducting business responsibly and makes this notion clear to all of its consumers and stakeholders. In fact, one can find a great dea; of information about the good that Starbucks does in articles, databases, websites, journals, and reference texts. Simply searching for "Starbucks csr" on the Internet, I was barraged by information about what Starbucks is doing here and abroad to make a difference in our world. Also noticeably available is the Starbucks annual fiscal Corporate Responsibility Report which is clearly presented on their website for consumers and stakeholders to view at any time. When reading this, I learned that Starbucks engages in free trade practices, paying fair prices to "coffee communities" (small countries like El Salvador and Guatemala). In 2006 they also invested 36.1 dollars to local communities, committed 5 million dollars to disaster relief in the aftermath of hurricane Katrina; Starbucks employees have volunteered over 383,000 hours in local community efforts; recycle and use cups with 10% post consumer fiber, etc.

Bottom line, despite their eventual arrival to every block, Starbucks is good at what they do. From delicious Caramel Macchiatos to conducting business responsibly- Starbucks gets it right.

Discussion Questions

1) What is the common denominator that coheres, defines, and sets the parameters of the emerging Global Community?

A "shared stake or responsibility in the condition of the earth and society. "

2) What is the fundamental attribute that stakeholders and shareholders of a given company have in common?

Stakeholders and shareholders are both invested (literally!) in the financial growth and well being of a corporation.

3) In what ways was the Montgomery Bus Boycott of the civil rights era a precursor to the “ethical consumption” discussed in the Dawkins/Lewis article?

The Montgomery Bus Boycott was a prominent precursor to “ethical consumption” because it was an exemplified shareholders (purchacers of bus tickets) holding a corporation (the bus company) accountable for not being socially responsible (racism).

4) In reference to the Felton Earls article, what “self interested” responsibility might Corporations have to deal with the issue of Urban Poverty?

Through investing in a neighborhood or providing jobs for residents stricken by poverty , companies could help to make a region more habitable while gaining support from those they have aided. Through these positive business practices, cities are bolstered lives are bettered.

5) What is the Community Reinvestment Act? (SCSR chapter 7) Do you agree with it? Why or why not? To what extent might it be “self-interested” for a company to go above and beyond its prescriptions?

The Community Reinvestment Act“is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate”. This act mandates that banks invest in their local communities.

In total, the CRA has initiated $1.5 trillion in community investment projects!

Although I think that CSR should be voluntary, this act has proven (by its impact) that laws that encourage CSR should represent the wave of the future of improving our communities.

6) In reference to Goodpastor and Matthew’s “Hand of Management” archetype, is it possible for a business to have thoughts? How? Similarly, is a business a “machine”, an “institution”, an “organism”, or some combination of the three?

The “Hand of Management” projects the idea that a business can be morally conscious. A business is made up of people and their thoughts and ideas can be seen in every aspect of business. Also, a business must survive and sustain itself. A business can seem to have thoughts when the ideas of its workers to change current practices and impact the community are used.

I think that business is akin to an organism. It is a working body of many parts and each part has a function. Like a business each part of the organism works together to replenish itself and grow. The well being of the whole organism relies on the health of each parts and its environment.

7) In what ways are "Corporations" part of their natural ecology? What does this imply about their "responsibility" to the environment?

Companies exist within a physical environment and house the people that inhabit an environment. Therefor, companies are responsible for minimizing their impact on the environment and taking care of the workers who exist in both settings.