Corporate social responsibility is beginning to seriously affect the supply chain relationships

Corporate Social Responsibility (CSR) programmes are having a greater impact on the way in which companies select and trade with suppliers than ever before.

"There's good evidence that CSR issue are beginning to seriously affect the supply chain, said Daniel Ball, director, Wax Digital, especially where those suppliers are selling into larger organizations.

"Only last month McDonalds stopped sourcing tea from Tetley because the company is not certified by the Rainforest Alliance - even though it does belong to the rival Ethical Tea Partnership.

“There's good evidence that CSR issue are beginning to seriously affect the supply chain.

Daniel Ball, director, Wax Digital

"Likewise, Starbucks terminated the contracts of 14 suppliers after an audit revealed they failed to meet the CSR standards set for its suppliers. ‘Managing and monitoring compliance across a large supply chain can be a major task.’

‘Suppliers therefore need to get their house in order, since it is clear that buyers are no longer simply paying lip-service to CSR, and they are increasingly getting the tools to help them ensure compliance, and ultimately penalise non-compliance,’

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