Corporate Social Responsibility Programs in Supply Chain Strategies

This study focused on United States-based small and medium-sized (SME) manufacturing companies and their decision-making strategies regarding corporate social responsibility (CSR) programs within their supply chain strategies. As CSR gains global acceptance, those stakeholder interests seek validation and compete for outcomes that affect the triple bottom line of people, the planet, and profits. Strategic managers must skillfully balance the implementation of CSR programs with available resources, all without a guaranteed increase in competitiveness or organizational excellence. CSR is often perceived as more suitable for larger organizations with ample resources. At the same time, SMEs grapple with the fiduciary challenges of adopting CSR programs into their organizations. This study used a qualitative, flexible multiple-case research design to gather data through interviews with six purposefully chosen C-suite-level manufacturing business leaders. The research followed an inductive, theory-driven approach to data collection and analysis. The findings suggest that SME manufacturers often rely on supply chain partners to meet their production needs. However, apart from fulfilling contractual obligations, they are not involved in how these partners conduct business. They typically see CSR as burdensome and, when mandated by government, another cost of doing business. Outside mandates or driven by customer demands, they show little interest in CSR and question its purpose when conducting business based on an ethical stewardship model.