Understanding the Impact of Outsourcing to CSR Practices

by | Nov 19, 2015 | Education

Technology intensive enterprises are constantly pushed towards performance initiatives that place an emphasis on doing things faster, better and with fewer resources. In fact, this push towards better competitive performance through effective and more efficient resource utilization and allocation is one of the current driving forces of many high-tech organizations. It must be noted though that the production processes of certain forms of technological output (i.e. consumer electronics, computer components etc.) do have an impact on the local environment which should be taken into consideration by an organization that utilizes corporate social responsibility as one of the foundations of their managerial practices. The drive for faster, better and less resource intensive production processes that are currently being pushed by various companies actually results in many of them choosing to utilize methods of production that have an adverse impact on the local environment. For a company that prides itself on its clean reputation proper investigation of third party management practices is essential, otherwise you may be accused of being two-faced by the very consumers you are attempting to appeal to.

What are Negative Corporate Practices?

Evidence of the negative consequences of corporate practices can be seen in the water quality in several of China’s industrial zones, such as in Tianjin, show an almost toxic level consistency of water run offs spilling into nearby bodies of water from several of these industrial zones. Furthermore the air quality in such areas has also been shown to consist of a variety of carbon and chemical based particulates that are the primary causes for the growing cases of lung disease and cancer within several of China’s expanding industrial cities. Tianjin, Guangdong and other regions in China have been affected in this manner due to the operations of various outsourcers like Foxxconn who manufacture products for other companies. The sheer negative of these practices showcase that companies should keep a closer look at their third party management processes since, even though their own internal company practices don’t damage the environment, their suppliers clearly do.

Why Should These Practices be Implemented?

Proper environmental management practices should be implemented by technology oriented enterprises due to the need to comply with ethical and moral standards of operation and the fact that an organization that engages in questionable environmental practices usually develops a negative public image. There are challenges thought to this approach, such as an increase in the cost of operations, lower production capacity, and the need to implement more stringent methods in the company’s operational procedure.

The fact remains that compliance to these ethical standards results in a better corporate image which resounds better with consumer groups, especially when taking into consideration the growing focus on environmentally sustainable practices of industrial production. For more information visit Compliance Education Institute.

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