mini sac KK9 and 10

CSR

it is the commitment from a business to go above and beyond their legal obligations to operate in an economically, socially and environmentally sustainable manner

CSR considerations for inputs

using renewable energy for its facillities

implementing water saving measures in its factories

use local suppliers to reduce carbon footprint, transport costs and supports local economy

CSR considerations for processes

minimising waste generated

keeping processes local

offering employee training and development

going above obligations to ensure employees are safe during processes

reducing emissions generated during production

CSR considerations for outputs

high quality goods and services

product that can be recycled after its lifespan

produces socially conscious goods or services

minimising packaging or using sustainable packaging

what are global strategies

global sourcing of inputs, overseas manufacturing, and global outsourcing

global sourcing of inputs

is where the business purchases inputs from suppliers in other countries

global sourcing of inputs- advantages

access to cheaper materials

able to learn about a potential future market

access to skills and materials not available in the country of production

global sourcing of inputs- disadvantages

can lengthen delivery and supply times

the ethical, environmental, and legal standards of the source country may be of concern

risk of damage in transportation increases with distance

overseas manufacturing

is where a business produces goods in a foreign country

overseas manufacturing advantages

access to cheaper labour rates

access to skilled labour that specialise producing the desired product

lower initial set up cost, as facility already exists

overseas manufacturing disadvantages

risk of shipping damage

lost jobs in local manufacturing can damage reputation

loss of control of process may impact quality

global outsourcing

involves contracting out business processes or services to third party providers in foreign countries

global outsourcing advantages

improved quality due to expert knowledge

costs can be reduced

production should be quicker as outsourced provider should be able to focus on the specialised task

global outsourcing disadvantages

management has less control over the production process

loss of local jobs damaging reputation

communication issues leading to customer service problems