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CSR in Supply chains

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Abstract

The paper discusses the risks the food industry faces concerning Corporate Social Responsibility (CSR) in the supply chain.

It develops a comprehensive framework focusing on unique CSR applications in areas like animal welfare, biotechnology, fair trade, health and safety, labor, and the environment.

The framework serves as a tool for assessing and improving CSR practices within the food supply chain.

Introduction

Increasing scrutiny on corporate ethics has expanded CSR practices, extending into supply chain accountability.

CSR failures (e.g., Enron, NIKE sweatshop issues) highlight the financial and reputational risks of neglecting such responsibilities.

While general CSR frameworks exist, the food industry needs tailored solutions due to its unique supply chain complexities and public visibility.

Framework for CSR in Food Supply Chain

Eight CSR categories specific to the food supply chain:

1. Animal Welfare: Humane treatment, housing, slaughter practices.

2. Biotechnology: Use of antibiotics, genetic modifications, cloning.

3. Community: Supporting local communities via philanthropy, job training.

4. Environment: Sustainable practices, waste disposal, reduced emissions.

5. Fair Trade: Ethical pricing to ensure supplier sustainability.

6. Health and Safety: Ensuring food safety, traceability, and security.

7. Labor and Human Rights: Addressing worker wages, conditions, and rights.

8. Procurement: Ethical purchasing practices.

Key Issues Discussed

1. Animal Welfare:

Practices like factory farming raise ethical concerns.

Research shows consumers value humane practices, though awareness is low.

Efforts like labeling and industry standards are emerging to address these.

2. Biotechnology:

While it offers benefits (e.g., higher yields, reduced crop loss), concerns persist around ethics, safety, and consumer acceptance.

Regulatory responses in the EU emphasize labeling and traceability.

3. Community Engagement:

Limited integration into supply chain strategies, despite potential benefits like enhanced loyalty and competitive advantage.

4. Environmental Impact:

Organic and sustainable farming practices are gaining traction but face logistical challenges.

Industry leaders like McDonald's and Starbucks adopt environmentally responsible practices.

5. Fair Trade:

Fair trade is gaining consumer interest but struggles with profitability and supply consistency.

6. Health and Safety:

Concerns include food-borne diseases, obesity, and food security.

Improved traceability systems are being adopted to mitigate risks.

7. Labor and Human Rights:

Issues like low wages, poor working conditions, and lack of rights are prevalent.

NGOs and regulations push for reforms but challenges like undocumented labor persist.

8. Procurement:

Ethical procurement practices (e.g., avoiding bribery, ensuring fair contracts) are crucial but inconsistently enforced.

Recommendations and Future Research

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