Socially Responsible Procurement Programme Essay

Socially Responsible Procurement Programme - Essay Example The companies in order to be successful need to cope up with the situation maintaining profitable performance and showing ethical conduct towards investors, business partners, vendors, employees, governments and communities, and the most important customers. The companies are routinely being rewarded and punished on the basis of their performance of balanced act. Thus procurement plays a major role in the outcome. Corporate social responsibility (CSR) can be split into four distinct classifications based on a theorist's approach and view of society. The role of business in society and its related theories fall into the following foundational areas: instrumental, political, integrative or ethical (Garriga & Mele, 2004). From the instumental perspective, participation in CSR activities is endorsed only if it is in concert with wealth generation, and therefore CSR is seen as an instrument in which greater profits can be achieved, a means to an end. In political setting, business is considered as a "citizen" or part of society as a whole with responsibilities assigned thereto (Davis, 1973). The resultant power of a corporation from its operation must be used for the benefit of society and, just as importantly, harnessed as not to have negative influence on the marketplace. Further, as a member of society, a business has a responsibility to use its power effectively. Integrative approach to CSR in dicates that business and society are interdependent, where one party cannot exist without the other; and, as such, each relies on the other for validity, status and survival. According to ethical perspective, businesses through their activities must treat the individuals that compose that society fairly, must contribute to the sustainable development of the environment in which they function and forever keep in mind the "common good" in business planning. If a business can be seen as a group of individuals seeking fulfillment in society to meet its personal goals, then there is a strong relationship between the corporate sector and the "common good." For business, the "common good" would be defined as the strategic actions taken by the corporation that would help the members of that entity realize their individual goals. When action such as this is taken, the collective personal interests of the employees, when combined with the shareholders of the corporation, meld; and company su ccess is virtually guaranteed. As Carter & Jennings (2000) postulate that procurement social responsibility (PSR) consists of a wide array of