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Posts Tagged ‘supply chain’

The Company You Keep

April 20th, 2010

It’s often said of great athletes that they are in part great because they make the players around them better; they force and inspire their teammates to elevate their game. Give Peyton Manning any wideout in the NFL. Give Steve Nash any forward in the NBA. They just play better, perhaps better than they thought they could.

This same principle has business application, particularly when we debate what it means to be a Responsible Company. Those companies with an integrated, strategic understanding of CSR know how the supply chain fits in, and know how to get their suppliers to play better.

Shaun Rein at Forbes hits on this notion, arguing that Apple hasn’t paid enough attention to the putative conditions at the manufacturers throughout its supply chain, primarily in some Asian countries where there are, at best, questionable workplace conditions. In particular, at a Taiwanese manufacturer called Foxconn, which reportedly has an egregious, inexcusable record on human and worker rights.

Rein asserts that Apple, under the leadership of Steve Jobs, has the “moral imperative to address concerns”. The moral imperative. The relentless pursuit of fat margins has moral consequences.

Sure, it ain’t easy to address this sort of thing. It’s very, very difficult. In the last two weeks, I’ve had just this kind of conversation with a client about its sourcing in other countries. Not every company has the same clout, the same leverage to force change on the same scale.

But what if more of the truly big boys committed to making just this sort of difference?

Rein uses the same illustrative example I would have in Wal-Mart’s drive to force its suppliers, globally, to be more environmentally friendly. You ever want to sell anything in our stores again? Here’s a list of environmental standards to meet.

Back to my “great athlete” analogy. The other side of that reputational coin is being in a position to affect a positive, socially valuable outcome, but choosing not to. The company you keep is important. Do you want to endure guilt by association, or make your team play better?

Mike Sacks can be reached at msacks@mww.com.

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