Topic > Buyer-Supplier Relationships - 1999

Globalization has led to expanded relationships across the world. These connections have created challenges for organizational leaders. The concept of responsibility extends far beyond customers and suppliers; organizations have become responsible for global social well-being and the environmental impact of their activities. Within integrated supply chains, managers have looked beyond traditional boundaries to achieve business-to-business relationships to manage risk and promote corporate social responsibility (CSR) requirements, such as sustainability. The buyer-supplier relationship connects companies across supply chains. Purchasing managers create a link between internal functions and external stakeholders of a company (Carter & Jennings, 2004). This is where CSR manifests as purchasing social responsibility (PSR), which includes socially responsible sourcing and ethical sourcing (Koplin, Seuring, & Mesterharm, 2007). This link can be understood in terms of stakeholder theory, which is based on a holistic model of the firm and the supply chain. Stakeholder theory explains an organization in terms of integrated relationships with suppliers, customers, employees, governments, media, communities, and competitors. According to stakeholder theory, a company has an ethical and fiduciary responsibility to conduct business with respect for its stakeholders, not just its shareholders (Freeman, 2010). Stakeholder theory is the foundation of the concept of corporate social responsibility (CSR), so purchasing social responsibility (PSR) has become a critical method through which stakeholder theory is administered in supply chains. The concept of sustainable development is at the heart of CSR. In 1987, the United Nations World Commission on E...... half of document ......inabilityconsortium.org/United States Environmental Protection Agency. (2009, September). Opportunities to Reduce Greenhouse Gas Emissions Through Land Management Materials and Practices (EPA 530-R-09-017, pp. 1-65). Retrieved from http://www.epa.gov/oswer/docs/ghg_land_and_materials_management.pdfWackernagel, M., Schulz, N., Deumling, D., Callejas Linares, A., Jenkins, M., Kapos, V., . .. Randers, J. (2002). Monitor the ecological overshoot of the human economy. Proceedings of the National Academy of Sciences, 99(14), 9266–9271. doi:10.1073/pnas.142033699Walker, H., & Brammer, S. (2009). Sustainable procurement in the UK public sector. Supply Chain Management: An International Journal, 14(2), 128-137. doi:10.1108/13598540910941993World Commission on Environment and Development. (1987). Our common future. New York: Oxford University Press.