The CSR Challenge of Global Supply Chains

1. The CSR Challenge of Global Supply Chains Atle Midttun CCC seminar Ekeberg April 13th – 2005

2. Two parallell developments Globalis. Drivers: Global outsourcing gains from access to special resources Globali sation gains from skill/wage differentials Outsourcing gains from technical specialisation Outsourcing Drivers: Gains from competitive exposure Gains from focus

3. Sturgeon figure: Vertical integration vs Value Chain Modularity Inn figure 1, p 468 Sturgeon

4. Three concerns • The quality/ efficiency concern: • Maintaining quality/ efficinecy throughout the chain • The environmental concern: • Managing resource flows throughout the chain in a responsible manner • The social concern: • Managing social responsibility throughout the chain

5. TQM model – Quality production throughout value chain Create awareness for TQM Communicate TQM Develop a case for action PLAN Establish process improvement Identify users throughout value chain Identify critical processes Continuous Process improvement DO Identify factor inhibitions Redesign critical processes Set standards, embodying needs CHECK Measure, moitor, implementation Against standards to ensure compliance to identified needs throughout value chain ACTION Kanji 1995 Delivery to customer

6. Administrative og økonomiske virkemidler Selvregulerende atferd Life Cycle Analysis and Management Administrative And economic regulation Vare- handel/ Fylling/ Konvertering forbruk Skogbruk Masseprod . Papir prod . Distribusjon pakking Avfalls- Sortering for Avfalls- behandling gjenvinning innsamling LCA a method of checking the facts about the environmental burden of a product, from its design through to production and then to final disposal. Self regulation

7. Hongkong and Shanghai Banking Corporation On 28 May 2003, Abdul Durrant, a cleaner at HSBC's offices in Canary Wharf in London's Docklands, rose to his feet at the company's annual general meeting and asked chairman Sir John Bond for "a living wage" and a pension. Sir John - doubtless feeling it was the sort of thing a chap could well do without in front of his investors - replied that, like all companies in the City, HSBC does not employ cleaners. They were the employees of cleaning contractors. It was not up to him, as a client, to dictate pay and conditions to another firm. Stephen Overell 3 February 2004Personnel Today 16

8. Last week, Barclays Bank announced Rentokil Initial had won the contract to clean its new headquarters in Canary Wharf, set to open next January. But in a move that has far-reaching implications elsewhere, the contract also includes minimum standards. In the low-profit, ferociously competitive world of contract cleaning, such a package is unheard of. Yet, for once, the significance is not in the details, but in the principle. Barclays has conceded that, in effect, it is responsible for the terms and conditions of indirectly employed staff. Stephen Overell 3 February 2004Personnel Today 16

9. Consistency may be hard to achieve We aim to be the world leader in energy and petrochemicals Corrocean We offer equipment for detecting and quantifying corrosion, erosion, sand production, pressure, temperature and flow force in conventional and subsea oil and gas wells, and for monitoring and quantifying corrosion, cracking, pitting and erosion in any industrial process piping.

10. International Institutions International NGO’s Government Developing Country Government Developed Home Country Civil society Developing Country Civil society Home Country Subsidiary Developing country MultinationalCompany Developed home country Suppliers Suppliers Suppliers Competitors and Partner Companies Developing country Competitors and Partner Companies Developed country Suppliers