Title: Navigating offshoring supply chain management decisions between cost advantages and corporate social responsibility risk
Authors: Stefan Zeisel; Moritz Peter
Addresses: Faculty of Business Administration and Economics, Hochschule Niederrhein, Webschulstr. 41-43, 41065 Mönchengladbach, Germany ' School of Engineering, Pforzheim University of Applied Sciences, Tiefenbronner Straße 65, 75175 Pforzheim, Germany
Abstract: In the globalised world, companies would source major parts of their production, mainly for economic reasons, from low-cost countries. Therefore, it is important to understand implicit corporate social responsibility (CSR) risk when making offshoring decisions. This article presents a transparent composite index of CSR risk for a list of 170 countries. Combining the country CSR index with GDP per capita can help firms identify attractive offshoring destinations with relatively low CSR risk. This innovative approach allows companies to reconcile CSR considerations with economic success when designing international supply chains.
Keywords: offshoring; outsourcing; corporate social responsibility; CSR; procurement; supply chain management; supply chain law; sustainability.
DOI: 10.1504/IJISM.2022.125989
International Journal of Integrated Supply Management, 2022 Vol.15 No.4, pp.410 - 433
Received: 12 Mar 2021
Accepted: 30 Apr 2022
Published online: 05 Oct 2022 *