Social responsibility and managing global supply chains: Clothing and textile retail companies

Abstract

Background: The impact of current CSR activity on social responsibility on the factory floors of suppliers for example in the developing countries seems to be marginal. The clothing and textile business is uniquely suited to addressing third-world issues because of its increasing reliance of outsourcing or purchasing. For companies, managing supplier relationships on a global scale presents particular challenges. A rich literature on CSR offers very limited practical guidance to corporate leaders, and is often very unclear.

Objectives: This study examined what clothing and textile retail companies operating in a fast-paced fashion business aim to attain with integrating corporate social responsibility (CSR) in their global supply chain management. The main objectives of the study were to define the factors that have an influence on successful supply chain management that takes sustainability into account, and to understand CSR as a part of corporate strategy. To get a practical point of view, the other objectives of this study were to define some challenges clothing and textile retail companies face in managing global supply chains as well as define some CSR tools/ways of action for sustainable purchasing.

Methodology: The empirical research was carried out based on a single-case study approach. The source of information was interviews. The interviews were conducted as personal in-depth interviews with selected respondents of the case company. The data used in this study were primary data and qualitative in nature.

Findings: It was noted that there are so many factors that have an influence on successful supply chain management that it was impossible to list them all and that these factors are company-specific and also industry-specific. However, some broad guidelines were defined. The study summarized some factors that clothing and textile retail companies aim to attain when integrating corporate social responsibility in their global supply chain management. Also several challenges the companies face related to socially responsible purchasing were summarized and some common CSR tools/ways of action for sustainable purchasing were identified and discussed.