Corporate social responsibility in global supply chains

Abstract

Purpose: The paper aims to present a conceptual framework for analysing CSR practices in global supply chains. It also seeks to demonstrate how a pioneering Swedish company, IKEA, implements and manages CSR practices at its suppliers. Design/methodology/approach: A case analysis of IKEA illustrates the implementation and management of CSR practices in supply chains. The focus is on internal and external integration of CSR practices in the supply chain. IKEA holds a leading position in its supply chain and is a global brand‐owner. Personal interviews are performed with employees from one of the company's trading areas. Findings: Practising CSR in supply chains requires that CSR is embedded within the entire organisation, including subsidiaries abroad and offshore suppliers. It includes employee training and sharing of experience, training of key personnel at the supplier level, positive incentives for suppliers in the form of long‐term contracts and enlarged purchasing orders, and regular auditing of suppliers' performance. Research limitations/implications: The paper focuses on CSR practices in a specific company's supply chain. Therefore, the findings cannot be generalised to other companies. Also, the practices have been studied from the perspective of the focal company. Practical implications: The CSR practices of IKEA can serve as inspiration for other companies that are considering adopting corporate codes of conduct. Originality/value: The paper presents a company that has a long tradition for working with environmental and social issues. The paper demonstrates how the actual management of CSR practices is determined by context‐dependent factors.