Corporate Social Responsibility - Research Paper Example

Business Research Report Table of Contents Table of Contents 2 0 Introduction 3 1 ment of the problem 4 2 Aim and Objectives of the Study 4 1.3 Rationale for this Study 5 2.0 Literature Review 5 3.0 Research Methods 7 4.0 Findings 7 5.0 Discussion and Questionnaire analysis 8 5.1 Purchasing Strategy Analysis 8 5.2 Sustainability Supplier Charter Analysis 11 6.0 Conclusions 16 7.0 Recommendations 16 8. 0 Reflections 17 9.0 References 18 1.0 Introduction To begin, this research report is about supplier relationships as well as corporate social responsibility (CSR here in after) including purchase strategy plans. Currently, a variety of studies universally have shown that public sector, organizations, consumers, businesses, employees as well as investors have a tendency to prefer companies that are perceived to be more sustainable (Peattie, K., Ottman, J., & Polonsky, 2002) (Closs, Speier, & Meacham, 2011) (Charter et al., 2001a) (Charter & Clark, 2008). Moreover, this report largely centers on a French corporation i.e. Atos Societas Europaea (SE) as a case study. In addition, Atos is a benchmark in information technology services industry. In 2014, Atos amassed annual profits of ten billion pounds as well as 86,000 members of staffs in 66 nations. Moreover, Atos also boasts of a colossal worldwide customer base (Atos.net 2014). What is more, Atos offers consultancy as well as Managed Services, systems integration services, as well as BPO, big data as well as security services, cloud operations, as well as transactional solutions through European leader in the transactional services as well as payments business-Worldline. Still, with its profound industry awareness as well as technology proficiency, the Group works with clients in diverse business sectors: financial Services, defence, manufacturing, health, Public Sector, telecommunications, media as well as utilities, retail, as well as transportation. Atos is focused on business technology that influences progress as well as aids organizations to construct their firms of the future. Besides, the Group is the Worldwide Information Technology Partner for the Olympic as well as Paralympic Games and is registered on the Euronext Paris market. Also, Atos runs under the brand names: Atos Consulting, Canopy, Atos, Bull, Atos Worldgrid, as well as World line (Atos.net, 2015). Moreover, Atos’corporate responsibility is part of its 3 program Ambition 2016 strategy that is founded on three strategic principles i.e.(i) Leadership in digital services for sustainability (ii) corporate responsibility at the heart of Atos processes as well as business (2). As a result, Atos was rewarded with the “key supplier award in 2014” by vollourec in CSR class (3). In addition to that, Atos is devoted to contributing high performance to its stakeholders, leading by example as an ethical as well as dependable digital services corporation. What is more, Atos commitment is illustrated in Atos Code of Ethics and in the United Nations Global Compact Atos has been signed since 2010. Additionally, all Atos suppliers as well as subcontractors (are on the whole referred to as Suppliers) are drawn in in Atos high performance. Likewise, this Sustainability Supplier Charter outlines the principles to be shared between Atos as well as its Suppliers, to make certain ethical as well as responsible conduct. Atos expects its Suppliers to apply internally, informing its employees, and with their own subcontractors the principles encouraged in the Sustainable Supplier Charter and to adopt a similar approach with their own partners, their own supply chain process. It is a kind of link between Atos and its supplier to agree on common principles and code of ethics. To be explicit, the Sustainable Supplier Charter serves as security to ensure ethical and responsible behavior. Still, Atos expects its entire supplier to have agreed and signed the charter. The charter is also incorporated into the suppliers contract. Additionally, Atos doesn’t transact with a supplier who has not ratified the Charter. Moreover, any conformity related to the Charter ought to be communicated to Atos. Also, Atos has incorporated scheme i.e. Atos zero paper to generate mutual benefits as well as value addition among its suppliers (Atos. net, 2015). 1.1 Statement of the problem Ensuring business sustainability, and within it upholding sound supply chain as well as purchasing strategies, is an intricate as well as a dynamic issue. In addition, currently there is no blueprint/ laid out procedure that in effect assists companies like Atos accomplish this. Still, in reality, only a handful corporations/ multinationals extend their supply chain from their suppliers supplier to their consumers consumer, or embrace life-long management of their goods as well as take-back services or reverse logistics. Consequently, this research was largely centers on assessing how Atos develops its unique CSR programs as well as supplier relationships. 1.2 Aim and Objectives of the Study On a more detailed level, objectives of this research included: (i) To determine why Altos needs to develop supplier relationships. (ii) To determine whether a purchasing strategy important within a company. (iii) To assess the different sorts of supplier relationships. (iv) To evaluate the various processes that constitutes a purchasing strategy (iv) To assess how Atos manages their supplier relationships. (vi) To evaluate how Atos integrates their CSR programs with its supplier. 1.3 Rationale for this Study Corporations like Atos are now faced by the grim reality that the value they offer to their clients is the summation of the total value adjoined down the supply chain. Also, the sustainability of the products as well as services an organization affords is also the summation of the total ethical, social, as well as environmental effects of these products as well as services down the supply chain. Consequently, companies have started acknowledging that they are obliged to understand, identify, as well as address sustainability concerns within their organizations, furthermore, also collaborate with other organizations in the supply chain to guarantee that these concerns are effectively managed all through the supply chain. It is worth mentioning that Atos was awarded the key supplier award in 2014 by vollourec in CSR category (Atos.net, 2015). In light of such compelling evidence it was therefore logical and rational to make use of Atos Group as a point of reference/ as a basis throughout the research; in order to gain more insight about supplier relationships as well as purchasing strategy. 2.0 Literature Review Charter et al., (2001) suggested that corporations with protracted as well as intricate supply chains, whether they are at the start e.g. chemicals), in the center e.g. logistics companies, or at the conclusion e.g. businesses of the supply chain, are more and more required to appreciate sustainability features of their supply chains. What is more, supply chain sustainability concerns can vary from exploitation of workers as well a child labor on the one hand to deforestation, ozone depletion, as well as green house gases effects. Besides, these issues can be classified on the basis of social, environmental, as well as ethical aspects. Moreover, a number of of the tools often used in sustainable supply chain management (SSCM) incorporate purchasing guidelines as well as supplier partnerships as well as written policies, communications materials, pre-qualification of suppliers (using environmental as well as /ethical /or social standards). Moreover, Charter et al., (2001) postulated that telecommunications companies like Atos have advanced sturdy environmental strategies, particularly in supplier evaluation as well as assessment in fields of risk (counting take-back prerequisites), persistent improvement as well as hazardous material handling. Still, there is some amalgamation such policies into quality regulations, although there is small input on social concerns. In addition, other tools currently employed encompass: training purchasing as well as sales personnel in environmental facets as well as supplier collaboration plans. In addition to that, consumer electronics companies also drawn attention to labor rights concerns in international production facilities, nevertheless have created sturdy environmental tools motivated by business-to-business (B2B) as well as legislative pressures. Additionally, pre-selection as well as assessment of suppliers on environmental observance concerns, partnering with suppliers to influence environmental performance as well as aiding suppliers to realize environmental management systems through loans was other tools acknowledged in this segment. Furthermore, Charter et al., (2001) postulated that In future, there will be widespread recognition of greater corporate transparency. Furthermore, organizations will have to show that stakeholder contribution is having substantial business impact. In addition, the third wave might center on transforming cultures – economic, corporate, as well as political. Also, the intensity of political, emotional, as well as economic energy that will be unleashed might have a mounting pressure on business functions. As companies become more and more accountable for the social, environmental, as well as ethical effects of their products, they ought to identify, scrutinize as well as manage these ramifications not only within their own operations, but all through their supply chain. This is particularly true in goods or service companies at the closing stages of the supply chain. For these organizations, many of the effects of their operations are in their supply chains. Further, as companies ever more subcontract manufacturing as well as "purchase in" sub-assemblies, components; as well as increasingly whole products, effects are moved to the start point of the supply chain, making supply chain management a progressively more significant business concern. Giving feed-back to customer inquiries as well as guaranteeing admission to markets in the face of new directives will necessitate companies to appreciate the social, environmental, ethical facets of the components as well as materials they purchase from suppliers. Besides, the beginning of ‘take back‘ guidelines in diverse markets is now expanding companies duties all through their products whole life cycle. In reality, only a handful corporations/ multinationals extend their supply chain from their suppliers supplier to their consumers consumer, or embrace end-of-life management of their goods as well as take-back services or reverse logistics. In addition, even within a single organization there seems to be conflicting understanding of supply chain strategy and much relies on the backdrop as well as position of the person in an organization. Moreover, supply chains as well as purchasing strategies encounter an array of key issues, and their success relies on their capacity to react to an array of issues: reaction to market instability; decrease of non-value added time in the supply chain; globalization of supply chains; advancements in ICT. What is more, the tools to aid enhanced management of the supply chain are hinged on the following issues: facilitating swift manufacturing; : customer center of attention at every stage in the supply chain; cheaper as well as more dependable transportation; wider bandwidth/universal communications; enhanced use of ICT; more authoritative data processing; information flows to all components of supply chain; computer-aided decision-support systems quantitatively founded performance management; enhancements in financial accounting, e.g. activity-based costing draws attention to the fiscal trade-offs essential to appreciate to design the supply chain; metrics as well as measurement of performance at every stage of supply chain; advanced organization management concepts that aid better teamwork as well as horizontal communication; decreased time; decreased costs; parties from interconnected functional operations collaborate to eliminate organizational blockades as well as unearth enhancements to supply chain performance; consideration of organization dynamics (Charter et al., 2001). 3.0 Research Methods The methodology for this research was based on secondary data sources including: newspapers articles, press release, text books, internal documents from Atos, Atos Financial Report 2014 Atos’ website, What is more, primary data was also collected using two questionnaires; with the aim of gaining valuable information regarding: (i) Purchasing strategy as well as (ii) Sustainability supplier charter. Technology and our contact within Atos i.e. (Lawrence Gravet) were used in dispatching the questionnaires. Furthermore, two questionnaires were dispatched within the French procurement department as well as at theinternational level. There were fourteen and fifteen respondents for the first and second questionnaires correspondingly. The classification of suppliers was made using the Pareto Analysis (Haughey, 2010) as well as the Kraljic Matrix. 4.0 Findings Based on the analysis above its logical to deduce that, Atos develops relationships with suppliers’ to realize the goals of its purchasing strategy. Moreover, the aim of a purchasing strategy is to be cost-oriented as well as facilitate reduction expenses. In addition, a purchasing strategy also helps increase profits by decreasing spending. Simultaneously, different types of supplier relationships (Kraljic Matrix), which permits the company to implement specific conditions’ in terms of contracts as well as objectives. Still, a purchasing strategy also consists of a number of processes. As Atos manages its supplier’s relationships it initiates CSR programs using this charter as a universal agreement on principles as well as code of ethics. In light of such compelling evidence, it was therefore logical as well as rational to make use of Atos Group as a point of reference/ case study in while striving to gain more insight about supplier relationships as well as diverse purchasing strategies. 5.0 Discussion and Questionnaire analysis 5.1 Purchasing Strategy Analysis With regard to question 1 all the buyers agreed that it is imperative to have a proficient purchasing strategy. Whilst, regarding question 2; 65% of the respondents suggested that the benefits of a purchasing strategy is to be efficient as well as facilitate cost saving. 22% said that it allows coordinate as well as achieve goals. Moreover, 64% of our respondents alleged that they usually do a market survey to analyse their needs. Conversely, 80% of buyers answered No, and explained that they might have specific needs and would prefer using the research and development department or a suitable service to conduct the market survey. With regards to question 4 (above), 50% of the respondents suggested that a market survey is conducted once a year, whilst 36% of the respondents suggested more than once in annually. According to 64% of the buyers, the most vital criteria of a market survey is to manage needs in term of cost, quality, geographic position, technology as well as innovation. The categorization of suppliers was done using the Pareto Analysis by 31% as well as the Kraljic Matrix by 23%. However, the rest of buyers were categorized according different methods and characteristics such as quality, requirements evolution, size, or sectors. The evaluation of potential suppliers is based on delivery time, cost, quality, as well as robustness according to 65% of the buyers. The most essential criterion while choosing a supplier or a new supplier considers: cost, service, innovation quality, security of global business. 5.2 Sustainability Supplier Charter Analysis Concerning the Sustainability Supplier Charter 67% of buyers confirmed that suppliers have signed the charter. Buyers who said No explained that sometimes it could be irrelevant for contract of offices by 40% or some of suppliers have a similar charter by 40%. If a supplier declines to sign the charter; in most of case, the charter is adjusted in the next contract by 33% or Atos may stop working with the supplier (reliant on the contractual agreement) by 25%. Most of buyers expect to sign the charter when it comes to renew the contract. Buyers who said No explained that it could be irrelevant for contract or offices by 50% or that most of the key contracts contain an environmental charter by 50%. According to 4 and 5(graphs above), 87% of the buyers allege that all the suppliers consent as well as respect the principles and code of ethics from the charter. In most of cases, suppliers can be penalized if they don’t meet their requirements or their delivery dates. Mostly, penalties might be financial. If one supplier does not satisfy one of the expected requirements for severally; there are sanctions including: being black listed, contract resiliation, delisted from the suppliers list, financial penalties. 6.0 Conclusions Following this study, scores of interviewees highlighted that setbacks with purchasing as well as supply chain strategies implementation are a consequence of organizational inactivity as well as challenges of corporate culture transformation. One main impediment is that in the majority multinational corporations people function (as well as think) in constricted, compartmentalized channels associated to their area of expertise. To counter this as well as realize horizontal arrangements, as well as build cross-functional panels is still one of the supreme challenges. However, an answer to this has been seen as enhanced employment of ICT e.g. extranet as well as intranet in building cross-country, virtual panels/groups. Nonetheless, there is some proof that the employment of ICT alone might not produce the anticipated outcome. Still, express human interaction is of key significance overall and is very true in establishment of sound supply chain and purchasing strategies. 7.0 Recommendations On my part, i suggest that taking a more sustainable stance in terms of supply chain sustainability and purchasing strategy in the short run like Atos has done can improve corporate image as well as develop customer confidence. Nonetheless, it is necessary to appreciate the groups’ direct as well as indirect social as well as environmental impacts prior to pursuing these benefits. At the moment, companies may either be receptive to the requirement for the enhanced supply chain sustainability as well as purchasing strategy – or it can pay the ultimate price through shareholder, consumer, as well as other stakeholder demands. In my view, companies like Atos should adopt an integrated supply chain which brings together each and every one of facets of the supply chain, counting product design, procurement, as well as planning, managing inventory, transportation order processing, in addition to warehousing, and customer service. Moreover, these swift as well as elastic supply chain arrangements are epitomized by a vibrant flow management of information, cash, as well as products, and even plans. Still, the center of attention is on dexterity across the whole supply chain, both within a corporation as well as--importantly--connecting backwards to suppliers as well as ahead to consumers as well as end-customers. A flourishing integrated supply chain is centered on consumer requirements, to a certain extent than the product. What is more, by setting out the supply chain in this manner, the surge of raw inventories as well as materials can be decreased to lowest amount. Furthermore, business hazards can be also decreased and performance savings can be accrued. Summarily, the integrated supply chain has the capacity react swiftly to constant adjusts in consumer demand. ICT can connect all quarters of the supply chain, hence averting static forecasting from secluded parts of the supply chain, by affording management with data from the whole supply chain 8. 0 Reflections I am of the opinion that, as corporations/ multinationals like Atos become more and more accountable for the social, environmental, as well as ethical effects of their products, they should identify, examine, as well as handle these ramifications not only within their own operations, but all through their supply chain. This is particularly factual in service or product organizations at the closing stages of the supply chain. For such multinationals, several of the ramifications of their operations are in their supply chains. In order to advance towards sustainable supply as well as purchasing strategies, there is need for clear vision, commitment, objectives as well as strategy driven from the top. Additionally, organizational structures will need to be created that enable learning and change in a dynamic setting. Higher levels of net sustainable value will need to be delivered through more sustainable solutions based on robust management systems. Moreover, multinationals like Atos, are perhaps best positioned to respond positively to supply chain sustainability impediments by means of drastic innovative services as well as products and associated novel business models. In addition, their push for effectiveness presents them a innate position in making production as well as products more resource efficient. Nonetheless, the cutthroat market system also rewards businesses that consumers reliant by the use of the promotion of greed, addictions, as well as fear that externalize costs, and draw thus far freely accessible non-market products into a market environment. Conversely, customers in theory can work out sustainable alternatives. This can be inspired by means of media as well as campaigns. However, consumers are, for a large part, entangled in social norms, infrastructures, as well as customs that sternly limit consumer choice, in reality. What is more, end user behavior transformation is only possible if three factors are dealt with concurrently: ability, motivation/intent, as well as opportunity. The other choice should as a minimum be as attractive as the existing way of doing things not only in terms of efficiency, but also in terms of unimportant features such as identity creation, symbolic meaning, as well as expression of hopes, dreams, as well as anticipations. Depending on e.g. informative instruments only, is absolutely insufficient in establishing efficient purchasing as well as supply chain strategies. The contribution of this study is to enlighten the accountability and governmentality concerns which are a part and parcel of enshrining sustainability in purchasing as well as supply chain strategy, and demonstrate the detail as well as complexity of technologies as well as attitudes which facilitate this. We ought to wrap up that sustainability in purchasing as well as in supply chain strategies in no way subdues the supremacy of economic priorities. Hence, inculcating sustainability in purchasing and supply strategies is ear-marked, in the present model of business, to imply translating sustainability imperatives into financial/ monetary/ fiscal ones. 9.0 References Atos.net, (n.d.). Company Profile. [Online] Available at: http://atos.net/en-us/home/we-are.html [Accessed 4th March 2015] Atos.net, (n.d.). Sustainability. [Online] Available at: http://atos.net/en-us/home/we-are/sustainability.html [Accessed Accessed 4th March 2015] Atos.net, (n.d.). Awards and Recognition. [Online] Available at: http://atos.net/en-us/home/we-are/awards-and-recognition.html [Accessed Accessed 4th March 2015] Atos.net, (2014). Atos rewarded as “Key Supplier Award – 2014” by Vallourec in the «Corporate Social Responsibility» category. [Online] Available at: http://atos.net/en-us/home/we-are/news/press-release/2014/pr-2014_10_29_01.html Atos.net, (2015). Sustainable Supply Chain. 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