Social Responsibility: supply business conduct and external suppliers

If you are wondering about the need for the social responsibility topic in the CPSM exam, all you need to do is recall the garment manufacturing building collapse in Bangladesh and think that there were at least some folks in the supply management chain who could have been more socially responsible and prevented the tragedy. For a supply management leader is not merely concerned about sourcing from the lowest cost global supplier, but is supposed to be watching for any corners that unscrupulous second tier suppliers might be cutting. The supply manager cannot keep asking for lower prices if it means that the tier 1 supplier is going to simply try and get the work passed off to a tier 2 supplier that leads to a building collapse and disaster. That the supply manager and leader is interested in not just low prices,great quality but is looking out for the welfare and safety of her/his entire global supply chain is the overall thinking of the "Social Responsibility" section. Included in this section are an understanding of the following:

• ISM principles and standards of ethical supply management conduct
• ISM principles of social responsibility
• The United Nation's ten principles of global compact

In general you should not only follow applicable laws but go beyond laws to ensure that your entire supply chain is working in a socially responsible manner.

More examples of Corporate Social Responsibility and Supply Chain are here.