Impact of supply chain integration on corporate responsible management performance
Fatih Yegul, PhD, School of Business
Recent global disruptions, such as the pandemic and geopolitical conflicts, have underscored the critical role of effective supply chain management in ensuring the uninterrupted flow of products and sustaining economic growth. Concurrently, corporate social responsibility (CSR) has gained prominence as the world strives to attain a sustainable future encompassing environmental, social, and economic aspects. Corporate strategies have expanded to incorporate CSR practices like evaluating Environmental, Social, and Governance (ESG) performance through ESG scores and aligning with the United Nations' Sustainable Development Goals (SDGs) through the global compact initiative.
This project explored supply chain integration and management practices, encompassing the procurement of raw materials, parts, equipment, and services, all of which wield significant influence over a company's CSR performance. Within this context, supply chain teams assume a pivotal role in ensuring that suppliers adhere to the CSR standards set by top management. Given the complexity of global value chains often responsible for producing products and services, larger and more influential companies within these chains can set an exemplary precedent and encourage their suppliers to meet CSR expectations.
To achieve these objectives, the research team collected and analyzed ESG ratings and supplier code of conduct data from 500 companies within the G7. This comprehensive analysis allowed them to pinpoint the key factors and practices that show variations in CSR performance among these companies.