CSR
Corporate Social Responsibility
Nguyen A Chau
BACKGROUND
•CORPORATE SOCIAL RESPONCIBILITIES
•CORPORATE RESPONSIBILITIES
(Social Compliance)
Media coverage
§ Continuing media attention on working conditions
and wages of laborers in factories
§ Brands/retailers with a product focus on marketing to
children have been a prominent target for negative
media attention
§ Labor practices receiving media attention include:
• Utilizing child labor
• Paying low wages
• Long work hours
• Unsafe working conditions
• Environmental issues
Recent impacts
Wal-mart?
Source: Internet
Recent impacts
GAP Inc.,?
Source: www.time.com
Recent impacts -Vietnam
VEDAN
Source: Internet
Recent impacts -Vietnam
THANG LOI TEXTILE
Source: Internet

ü Expect suppliers to comply with local
labor laws and standards
Why are supply contractors concerned?
§ Long adhered to quality standards
§ Recognize adherence to social standards is a current requirement
of buyers (brands/retailers)
§ Recognize the same product quality standards must apply to
social standards
§ Directly impacted by damage to brands’/retailers’images:
Ø Negative media attention can reduce demand
Ø Reduced orders can result in fewer jobs
Ø Reduced demand can result in factories going out of business
Supply Chain Relationships
§ A supply chain consists of the
organizations involved in producing
a product
§ Brands/Retailers are directly
impacted by the actions of their
supply chain partners in the area of
social compliance
§ A brand/retailer’s supply chain can
consist of various types of
manufacturing relationships
Sample Manufacturing Structure
Brand/Retailer
Contract Manufacturers
Brand/Retailer
Manufacturing
Licensees
Licensee Used