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Corporate Social responsibility in the supply chain a case of unilever Indonesia (presented at The 2007 International Conference on Knowledge-Based Economy and Global Management at Tainan, Taiwan, 6-7 December, 2007)
Bibliografi
Author:
Nugroho, A.Y. Agung
Topik:
Corporate Social Responsibility
;
Supply Chain
;
FMCG Industry
Bahasa:
(EN )
Penerbit:
Southern Taiwan University of Science and Technology
Tempat Terbit:
Tainan, Taiwan
Tahun Terbit:
2007
Jenis:
Books
Fulltext:
Corporate Social responsibility in the supply chain a case of unilever indonesia(1).pdf
(4.86MB;
2 download
)
Abstract
Nowadays, Corporate Social Responsibility (CSR) becomes an increasingly popular topic in the business world, due to, among others the growing awareness of a company's task as not only on profit making but also on providing benefits for the society to get a better life from the company's existence. Companies have recognized the significant impact of the management of sustainability issues on their corporate reputation, such as environmental and social impacts of their supply networks. In spite of the relative slow adoption of CSR considerations by supply chain practitioners, its concepts in the supply chain are increasing in importance. CSR continues to evolve in practice, and its reach now extends to supply chain partners including suppliers, customers and logistics providers. Critics on apparel companies regarding sweatshop labor issues at its overseas suppliers are one of the famous cases of the increased public pressure on social responsibility in supply chain. This paper intends to examine how a multinational corporation can implement CSR considerations in their supply chain. In particular, this study aims to explain the success of Unilever Indonesia (Unilever), a leading Multinational Corporation in fast moving consumer goods industry (FMCG), to conduct CSR program in its supply chain, with a case study on its Black Soybean Program. Researchers have attempted to generalize the concepts of supply chain CSR in all industry. They proposed issues such as employee training, philanthropy, environment, human rights, work place diversity, health and safety, and other community issues. This study applies qualitative approach. The data have been collected through an in-depth interview, library research, and secondary data analysis. The Black Soybean Program conducted by Unilever is a novel way in implementing CSR. It was actually invented when Unilever tried to source one of the essential ingredients to produce "Kecap Bango" sweet soy sauce directly from the farmers. Unilever provides various supports necessary to produce high-quality black-soybean to the farmers. The achievement was the increasing number of farmers involved in black soybean plant and becoming suppliers for "Kecap Bango" product. In 2002, only some farmers engaged to this project. Currently, the number increased to more than 6.000 farmers. The benefits for the company are security of raw material supply, costs reduction and quality guaranty. Meanwhile, the farmers, the last part in the supply chain networks, receive a high-price market guaranty, technical assistance, and financial aid. Hence, both parties gain positive benefits. In FMCG industry, there is a very long and complex supply chain network, so that social responsibility of the corporation has to be able to reach the last part of the chain. To enable the development of CSR research in supply chain, research of the entire supply chain or of its individual element is necessary in various industries.
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