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NATIONAL INSTITUTE OF TRANSPORT
DEPARMENT OF MARITIME TRANSPORT MANAGEMENT
MODULE NAME : INTERNATIONAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT
MODULE CODE : SPU 08I03
LECTURER’S NAME : MATHEW SWILA
PROGRAMME : BSPLM.
STREAM :A
SEMESTER : ONE
TASK : INDIVIDUAL ASSIGNMENT 1
STUDENT’S NAME :BERNADETHA PETRO SIMONI
REGISTRATION NUMBER :NIT/BSPLM/2022/1584
ACADEMIC YEAR : 2024/2025
SUBMISSION DATE : 23th December 2024
QUESTION
By using relevant examples explore the factors led to the growing and implementation of
corporate social responsibility (CSR) in supply chain undertakings.
Corporate social responsibility (CSR) in supply chain Management. Refers to the
commitment of companies to conduct their business in an ethical manner that considers the
social, environmental, and economic impacts of their operations. This approach is increasingly
important as stakeholders including consumers, investors; and regulatory bodies demand greater
accountability from businesses regarding their supply chain practices. Also this (CSR)
encompasses a company’s efforts to improve its impact on society and the environment while
ensuring that its supply chain operations are sustainable and ethical. This includes addressing
issues such as human right, labor conditions, environmental sustainability, and community
engagement throughout the supply chain.
The following factors leading to the growing implementation of corporate social responsibility
(CSR) in supply chain undertakings;
Increase consumer awareness and demand for ethical practices. One of the most significant
drives of CSR in supply chains is heightened awareness among consumers regarding ethical
practices. Modern consumers are increasingly concerned about how products are sourced,
manufactured, and delivered. For example, brands like Patagonia have built their reputation on
sustainable sourcing and environmental stewardship. This company’s commitment to using
recycled materials and promoting fair labor practices resonates with environmentally conscious
consumers, leading to increasing brand loyalty and sales.
Regulatory pressures and compliance requirements. This point explain that the governments
around the world are implementing stricter regulations concerning environment protection, labor
rights, and corporate governance. For example the European Union’s Non-Financial Reporting
Directive requires large companies to disclose information on how they manage social and
environmental challenges within their supply chains. Failure to comply with such regulations can
result in significant fines and reputational damage.
Globalization and supply chain complexity. Also the globalization of supply chain has
introduced the complexities that necessitate robust CSR strategies. Combines often source
materials from multiple countries with varying labor standards and environmental regulations.
This complexity increases the risk of unethical practices such as child labor or environmental
degradation. For example, Nike faced in the 1990s over labor practice in its overseas factor in
response, the company implemented comprehensive CSR polices aimed at improving working
conditions across the global supply chain. Now day Nike publishes an annual sustainability
report detailing its effort to promote ethical labor practice and reduce its environmental footprint.
Stakeholder’s expectations. This means that the stakeholders including investors, employees,
supplies, and communities are increasingly demanding transparency and accountability from
corporations regarding their social responsibility effort. Investors are particularly focused on
environmental, social, and governance (ESG) criteria when making investment decisions. For
example company like tesla have reorganized this trend by actively promoting their sustainability
initiatives through transparent reporting on carbon emissions reductions and renewable energy
usage within their supplier chains. By addressing stakeholder concerns through proactive CSR
measures, these companies enhance their reputation while potentially attracting more investment.
Risk management .This integrating CSR into supply chain management also serves as a risk
management strategy for various risks associated with unethical practices or environmental
disasters that can disrupt operations. For example, BP’s Deep water horizon oil spill highlighted
the catastrophic consequence of neglecting environmental responsibility within supply chains. in
response to such incidents across industries, many organizations have adopted CSR framework
that include risk assessment related to social and environmental impact_thereby safeguarding
against potentially crises.
Technological Advancement. This advancement in technology facilitate greater transparency
within supply chains, enabling companies to monitor compliance with CSR standards more
effectively. Blockchain technology is the one example that allows for traceability throughout the
supply chain-from raw material sourcing to final product delivery. For example companies like
Walmart have begun utilizing blockchain for tracking food product origins to ensure safety
standards are meet while promoting sustainable farming practice among suppliers.
Cost Savings and Operational Efficiency. This means that Sustainable supply chain practices,
such as reducing waste or energy use, not only support CSR objectives but also lead to cost
savings and improved efficiency .For example Walmart’s Project Gigaton encourages suppliers
to reduce greenhouse gas emissions by one billion metric tons. This initiative has improved
environmental outcomes while reducing operational costs for both Walmart and its suppliers.
Generally the growing importance of CSR in supply chain undertakings is fueled by a blend of
societal, economic, and regulatory factors. Companies that prioritize CSR are better positioned to
meet stakeholder expectations, gain competitive advantages, and ensure long-term sustainability.
By adopting responsible practices, organizations not only enhance their reputation but also
contribute positively to society and the environment.
REFERENCE
Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social
responsibility: A review and research agenda. Journal of management,
Agyeman, J. (2007). Communicating “just sustainability”. Environmental Communication.
Altmeppen, K.D. (2006). Journalistische Organisationen und Medienorganisationen als

unterschiedliche Organisationssysteme. Journalismus und Medien als Organisationen:
Leistungen, Strukturen und Management,
Andriof, J., & McIntosh, M. (2001). Introduction-What is Corporate Citizenship. Andriof, J. &
McIntosh, M., Perspectives on Corporate Citizenship. Greenleaf Publishing: United Kingdom,
Aslaksen, H.M., Hildebrandt, C. & Johnsen, H.C.G. The long-term transformation of the concept
of CSR: towards a more comprehensive emphasis on sustainability. Int J Corporate Soc
Responsibility 6, 11 (2021).

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NATIONAL INSTITUTE OF TRANSPORT

DEPARMENT OF MARITIME TRANSPORT MANAGEMENT

MODULE NAME : INTERNATIONAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT

MODULE CODE : SPU 08I03

LECTURER’S NAME : MATHEW SWILA

TASK : INDIVIDUAL ASSIGNMENT 1

STUDENT’S NAME :BERNADETHA PETRO SIMONI

REGISTRATION NUMBER :NIT/BSPLM/2022/1584

ACADEMIC YEAR : 2024/2025

SUBMISSION DATE : 23th December 2024

Agyeman, J. (2007). Communicating “just sustainability”. Environmental Communication.

Altmeppen, K.D. (2006). Journalistische Organisationen und Medienorganisationen als

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