The implementation of social responsibility in purchasing in Hong Kong/Pearl River Delta: A case study

Abstract

Purpose – In response to stakeholder concerns for social responsibility in global supply chains, companies have implemented codes of conduct in outsourcing activities. The purpose of this paper is to examine empirically how a multinational buying office implements its social responsibility and the codes in purchasing activities in the Hong Kong and Pearl River Delta (HK/PRD) region.Design/methodology/approach – This paper reports a case study that reviews the experience from three sourcing projects of a multinational buying office in the HK/PRD region. This company has successfully adopted purchasing social responsibility (PSR) practices for years.Findings – The results show that the environment, ethics, health and safety, and human rights are more important than diversity, community, and financial responsibility in PSR practices in the HK/PRD region. The benefits of adopting PSR include reduced operating costs, enhanced brand image and reputation, increased sales and customer loyalty, increased productiv...