Improving the Value Chain With Corporate Social Responsibility

444 WordsFeb 4, 20182 Pages
The realm of Corporate Social Responsibility (CSR) is to increase business profitability and opportunities by making improvements in terms of operational effectiveness throughout the value chain (Rangan, Chase & Karim, 2012). This increasingly popular CSR among corporate and academic leaders is synonymous to the “shared value” framework, whereby organizations seek to co-create economic and social value. According to Ridurnolu, Prhalad and Rangaswami (2009), corporations from the United States recognize the business value of revolutionizing new manufacturing and technology that cut operating costs while minimizing impacts on the environment. This CSR domain focuses on operational efficiency and also building revenue, with the initiative to be determined by the ability to improve the corporate bottom line while at the same time returning social value. To achieve that, the strategy is to reengineer a corporation’s entire value chain, which stems from natural resource extraction and sourcing to manufacturing, shipping and product delivering. An example would be Nike’s establishment of their Code of Conduct which oversees its entire production supply chain. Nike’s code consists of requirements that their employees be given basic rights such as fair compensations, safe and healthy work environment and ethical treatment in the workplace (Nike, Inc, 2010). According to Angeles (2014), the company also launched an environment management information system that reduces the negative
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