Challenges of CSR Implementation in Supply Chains: A Thematic Review in the Emerging Market Context

Abstract

Encouraged by a variety of stakeholders and the benefits that could derive from corporate social responsibility (CSR), multinational corporations (MNCs) are increasingly concerned with limiting the social and environmental costs of their operations. Yet, they are often accused of not walking the talk on sustainability. Since offshoring and outsourcing became mainstream in international business, concerns have particularly emerged around MNCs’ ability to implement credible and efficient sustainability strategies along increasingly complex and dispersed global supply chains. Evidence on the effectiveness of private initiatives to socially and environmentally upgrade supplier practices remains mixed, and the different insights from the literature, siloed. This work aims to provide a survey of the literature documenting the challenges MNCs face trying to implement more sustainable policies in supplier networks located in developing countries, where sustainability standards and certifications are likely to be poorly enforced. We integrate insights from multiple disciplines, provide an overview of the existing body of research on the topic, and propose an analysis structured around three recurring themes: the policy tools available to MNCs and their limitations, the obstacles to suppliers’ compliance, and the different governance mechanisms available to MNCs to shape their suppliers’ practices. By providing a comprehensive picture of CSR policy implementation challenges, we contribute to practice and highlight potential avenues for future research.

Citation

Sellin, J. (2024), "Challenges of CSR Implementation in Supply Chains: A Thematic Review in the Emerging Market Context", Choi, J.J. and Kim, J. (Ed.) Responsible Firms: CSR, ESG, and Global Sustainability (International Finance Review, Vol. 23), Emerald Publishing Limited, Leeds, pp. 93-115. https://doi.org/10.1108/S1569-376720240000023005