Ethical Sourcing And The Supply Chain

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Ethical Sourcing and the Supply Chain Growing competition and the ever increasing emphasis on cost reduction and efficiency has caused many firms to outsource various components of their operations outside of the country. As firms are thrusted into the global marketplace and transformed into multinational corporations (MNCs), new challenges arise related to the differences/disparity in corporate social responsibility (CSR) practices between countries (Chandler & Werther Jr., 2014; Cruz, 2013). Globalization has increased companies need to consider the importance and strategic value of CSR (Chandler & Werther Jr., 2014; Cruz, 2013).
At the forefront of international CSR issues, is the consumer demand for ethically managed supply chains. Cruz (2013) stated that “poor CSR performance, at any stage of the supply chain process, may damage a company’s most important asset–its reputation” (p. 3995). Based upon a case study on the outsourcing of production activities by Apple Inc. to the controversial contract manufacturer Foxconn, this paper will discuss whether or not firms have responsibility for the supply chains they choose to utilize. The paper will also highlight some of the advantages and disadvantages of Apple’s outsourcing decision, along with cost-benefit analysis of such decision.
Supply Chain Responsibility As companies increase their global presence through the outsourcing of manufacturing activities, the question of Who is responsible for ensuring the supply
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