The International Journal of Professional Management - ISSN 20422341
A Study on Impact of Corporate Social Responsibility (CSR) on Supplier Relationship Management (SRM) in Food Manufacturing Companies in Malaysia
Volume 16, Issue 2, 2021
Law Chong Seng.
DBA candidate (IPE Management School, Pole Paris Alternance), EMBA (Supply Chain Management) Asia e University, Malaysia (AeU), BSc (Environmental Science) National University of Malaysia (UKM).
mylawcs@yahoo.com
Dr. Selvamalar Ayadurai
Ph.D (Political Science) National University of Malaysia (UKM), MBA (Management) University of Bath U.K, DBA Dissertation Supervisor, Examiner, Lecturer
Tel: +6012 2396 547, drmalar@cbct.my
Abstract
Unlike other sectors, the supply chain faces several major threats from public scrutiny of Corporate Social Responsibility (CSR) issues. Most food manufacturing companies have outsourced parts of their business or operation to focus on their core business activities and competencies. They are likely to have suppliers that operate or source on a global basis, which have increased exposure to CSR issues or risks. This research benchmarks Fortune Global 500 best practices and analyses some food manufacturing companies in Malaysia, particularly in Johor. CSR is a public relations tool rather than a value-creating process, the goal being to help manufacturing companies achieve sustainability. The focus is on how CSR impacts supplier management in food manufacturing companies, specifically in cereal and flour-based food products. When used as a CSR tool, SRM (Supplier Relationship Management) has the potential to deliver financial performance while resolving social issues. The ties between supplier development and CSR, focusing on societal issues, form the basis for this research. It reviews the literature identifying relevant social and societal issues in food supply chains and the role of supplier growth in supplier-level performance. There are elements in SRM that form a system for companies to effectively manage product qualities and compliance. Organisations that do not meet the standards of stakeholders will see their credibility diminished with negative effects on both market shares and profitability.
Key Words
Corporate social responsibility, Supplier relationship management, Food manufacturing industry
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