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Corporate Social Responsibility in Purchasing and Supply Chain

Syed Nabeel Ali - 1536


Adnan Ahmed - 1478
Syed Abdul Rehman - 1819
Faculty of Business Administration
Iqra University, Karachi
Email: syednabeelali92@gmail.com

Abstract
The objective of this particular study is to figure out the drivers of social
responsibility in purchasing (PSR). This particular study replicated as well
as prolonged the number associated with empirical application from the
model developed through Carter and Jennings (Journal of Business
Logistics 25(1), 145-186, 2004). In this piece of paper, it is asked from
respondents to indicate how various dimensions related with corporate
social responsibility (CSR) impact PSR.

1. Introduction
Background of the Study
The global momentum of corporate social responsibility is gradually embracing in Asian
companies also, because the observation says that by improving customers view of a company,
CSR has the ability to increase sales revenue and market share. It is argued by Peloza (2006) that
CSR and corporate financial performance (CFP) are interrelated. The theory of CSR does not
demand to change companies into NGOs- Businesses still need profits. But it is take care that
they should get profits from liable practices.

Problem Statement

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CSR appears to be the fundamental theory for todays highly competitive businesses as the
responsibility of purchasing management and logistics functions come to be more significant for
the success of an organizations.
CSR has established increasing attention from supply chain experts, because a firms reputation
is affected by the manner of purchasing and supply chain management (Carter, 2000a, b; Cooper
et al, 1997; Lysons and Gillingham, 2003). If we talk about General Supply Chain CSR
applications, we can study the food industry, animal welfare, biotechnology, the environment,
fair trade, health and safety, and labor and human rights in various situations in subject like
community procurement (Maloni and Brown, 2006).
The Chartered Institute of Purchasing and Supply (CIPS, 2005) warns that failure to grasp
significance of these issues can lead to significant disruption in firms and their supply chains.
Research Objectives & Questions
The objective of this particular study is to figure out the drivers of social responsibility in
purchasing (PSR). This particular study replicated as well as prolonged the number associated
with empirical application from the model developed through Carter and Jennings (Journal of
Business Logistics 25(1), 145-186, 2004). In this piece of paper, it is asked from respondents to
indicate how various dimensions related with corporate social responsibility (CSR) impact PSR.
Hypothesis
In relationship with the research framework, the following hypotheses are developed to examine
the relationship among selected variables.
Ha1:

Intensity of customer social pressures has a significant relationship with Intensity of

middle management social initiatives in Purchasing and Supply Chain.


Ha2:

Intensity of government social pressures has a significant relationship with Intensity of

middle management social initiatives in Purchasing and Supply Chain.

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Ha3:

Socially sustainable supplier selection has a significant relationship with Intensity of

middle management social initiatives in Purchasing and Supply Chain.


Ha4: Buying firm reputation has a significant relationship with Intensity of middle management
social initiatives in Purchasing and Supply Chain.
Ha5: Supplier performance has a significant relationship with Intensity of middle management
social initiatives in Purchasing and Supply Chain.
Ha6: Extent of organizational learning in supplier management has a significant relationship with
Intensity of middle management social initiatives in Purchasing and Supply Chain.
Ha7:

Association of Intensity of customer social pressures, Intensity of government social

pressures, Socially sustainable supplier selection, Buying firm reputation, Supplier performance,
Extent of organizational learning in supplier management have a significant impact on Intensity
of middle management social initiatives in Purchasing and Supply Chain.

2. Literature Review
Progressive CSR, "Constitute an honor that a firm is reliable and fair" as mentioned by Mc
Williams and Seigel 2001. Likewise, Bhattacharya and Sen (2004) dispute which that CSR
develops the reservoir associated with goodwill which companies may pull on within occasions
associated with chaos. Good reputations possess frequently already been related to good
monetary results, using their worth associated with the shortcoming associated with rivals in
order to mimic the actual status. Roberts and Dowling (2002) discovered the worthiness of the
good status is actually, "precisely because the development of a good reputation takes
considerable time and depends on a firm making stable and consistent investments over time".
Consequently, status is actually perhaps probably the most useful resource associated with any
kind of organization and therefore really worth safeguarding. Banerjee et al. (2003) postulated
companies which are below higher overview from the wider selection of stakeholders encounter
higher company publicity. Certainly, prior investigation indicates that the company's assistance

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with regard to nonprofit organizations as well as interpersonal leads to is actually extremely
related along with the amount of company publicity this encounters.
Regardless of the living of the long-standing flow associated with CSR investigation within the
areas associated with management and business ethics (e.g. Bowen, 1953; Carroll, 1979; Davis,
1960; Freeman, 1984; Wood, 1991), logistics scientists possess just lately started to think about
the actual as soon as disparately seen logistics actions for example security (e.g. Corsi and
Fanara1, 988), the environment (e.g. Stock, 1992), and diversity (e.g. Andre, 1995) underneath
the wider outdoor umbrella associated with logistics social responsibility (LSR) (Carter and
Jennings, 2002a; Murphy and Poist, 2002). This particular space within the books is actually a
whole lot worse with regards to the knowledge of exactly how LSR as well as PSR problems
tend to be used within areas of Asian countries. It's just recently been which scientists possess
empirically looked into the actual measurements associated with actions which consist of PSR
(Carter and Jennings, 2004). These types of actions consist of: environment buying, finding
through minority-owned providers, as well as human being privileges, security, as well as
philanthropy problems associated with supply management.
2.1 Corporate social responsibility (CSR)
Davis (1973, p. 312) provides a traditional definition associated with CSR because, "the
company's thing to consider associated with, as well as reaction to, problems past the actual thin
financial, specialized, as well as lawful needs from the firm". Carroll (1979, 1991) additionally
keeps how the duties associated with company exceed the bottom degree of economic
responsibility, to incorporate legal, ethical, as well as discretionary obligations.
2.2 Purchasing social responsibility (PSR)
When CSR involves purchasing function, it becomes Purchasing Social Responsibility (PSR).
These certain, functioning classification regarding PSR, which usually paraphrases Carroll's
definition of CSR, is employed in today's study: "purchasing activities that meet the ethical and
discretionary responsibilities expected by society".
Recently, Carter (2005) analyzed exactly how socially responsible supply management exercises,
or even PSR, impact the merged. There's been a lot discussion, as well as mixed empirical
conclusions, regarding regardless of whether socially responsible conduct for businesses

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enhances or even decreases their own efficiency. Additionally, Carter and Jennings (2002b)
researched this particular as well as associated challenges, for example safety and philanthropy,
underneath the wider proceeding associated with PSR, and also have operationalized PSR like a
second-order, latent construct. A few of the crucial drivers as well as facilitators associated with
PSR recognized through Carter and Jennings incorporate a people-oriented organizational
culture, top management leadership, employee initiatives, and customer pressures.
Ultimately, the particular dimensions regarding PSR seem to replicate those regarding CSR.
Nonetheless, lots of the certain routines look like special to be able to purchasing. The particular
interactions involving the antecedent constructs and also PSR will be discussed next part and
also their particular hypothesized relationships are usually introduced inside Figure 1.

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2.3 Similar studies and their Literature Reviews


1. Researching the drivers of socially responsible purchasing: a cross-national study of
supplier diversity initiatives
Abstract
What drives an organization to engage itself in CSR initiatives? To investigate that question, this
article examine which supplier diversity programs have used in U.S and U.K. it focuses on what
factors are play a vital role as a drivers in the corporate social responsibility
Literature Review
Issues of ethics and CSR are the important themes in purchasing and supply chain fields for over
two decades. Concepts of CSR and ethical sourcing are judge at variety of levels ranging from
environmental impact, human rights, safety, philanthropy, and quality of life. Authors said that
involvement of purchasing personnel in the socially responsible management helps to increase
the trust of buyer, supplier relationships and helps to improve supplier performance. One of the
key drivers behind the implementation of CSR is to reduce the risk of corporate reputation,
which is an intangible asset that directly links to a firms strategic advantage. Poor social and
environmental conditions in supply chain networks can increase significant reputation risks to
big brands.
One specific issue behind CSR activities in purchasing is diversity, few existing studies based on
U.S are experienced in the implementation of those programs which aimed to support minority
and or women owned suppliers. For example in order to answer this question that how we can
develop effective minority purchasing programs? The firms are taking their attention to support
minority programs in their purchasing policies.
At more theoretical level, the Dollinger reference a transactional costs framework to examine the
problems related with minority business enterprises, and determine that minority businesses has
faced higher cost as compare to other corporate enterprises. On a positive note purchasing

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managers are now accepting such programs that have positive impacts over minority business
enterprises.
2. Lean and agile supply chain strategies and supply chain responsiveness: the role of
strategic supplier partnership and postponement

Literature Review
The strategic assessment of dealing supply chains has supposed utmost importance, mainly since
such a complex environment has successfully moved the attention of rivalry from a firm versusfirm paradigm to a supply chain-versus-supply chain paradigm (Li et al., 2006; Tan et al., 2002).
Now a days, firms see supply chain management as a strategic tool to increase their competitive
lead.
Theoretical Background

This

paper

reports

theoretical

background

that

has

two

perspectives

the

strategic selection perspective and therefore the resource-based theory of the firm as applied
to supply chain. Firstly, Ketchen and Hult (2007) study the strategic-choice perspective as a
vital theoretical basis for examining supply chain strategy. This approach thinks about with
adoption of a supply chain strategy which will address the focal firms objectives of being
responsive (Miles and Snow, 2007). Second then, so as to execute the supply chain strategy
effectively and succeed responsiveness, the firm needs supply chain practices to enact the
supply chain strategy effectively. From the lens of the resource-based read, such practices may
be seen to produce the focal firm with resources, knowledge, style and material.
Strategic vision of supply chain and supply chain strategy
The strategic goals and objectives of its supply chain reflect the supply chain strategy of the
firm. Supply chain strategy needs associate end-to-end concentrate on integration of business
processes during the course of the value chain for the aim of providing optimum value to the
end-customer (Wisner, 2003; Green et al., 2008).
Latest scientific studies (Qi et al., 2011; Qi et al., 2009) have got dedicated to the partnership
involving the firms supply chain strategy and also company efficiency. Specifically, they will
declare that supply chain strategy must help the particular firms strategy and also improve the

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firms responsiveness and also efficiency available on the market (Qi et al., 2011; Mitra and
Bhardwaj, 2010; Narasimhan et al., 2008).
Mediating role of supply chain practices
Quite a few scientific studies demonstrate in which well-managed and also properly carried out
supply chain procedures assist in improving company efficiency (Shin et al., 2000; Tan et al.,
1998; Tan et al., 2002).). Many scientific studies have got related supply chain procedures right
to either reaching competing edge or perhaps increasing company efficiency without considering
it being a great more advanced determine to accomplish supply chain benefits (Paulraj et al.,
2012; Li et al., 2006). Good theoretical backdrop introduced within the last few part, we all
declare that supply chain practices mediate the partnership among supply chain strategy and
supply chain responsiveness to boost company efficiency.

3. Measuring supply chain efficiency from a green perspective

Literature Review
The particular literature working with international evaluation with the country-level
environmental friendly efficiency or perhaps the particular connected concerns for instance
lasting advancement will be scarce. Scientific studies working with international comparison
regarding national-level logistics activities are usually scant at the same time. As an example,
even though the LPI was initial produced inside 2007, research employing the particular LPI is
practically non-extant. Any search term lookup making use of LPI around the research databases
for instance Business Source Complete or perhaps Ohio Link Electronic Journal Center failed to
create virtually any visits. Alternatively, any search term lookup for a passing fancy databases
while using the EPI and ESI, the particular forerunners regarding EPI, create many visits.
Nonetheless, not one of them have got virtually any primary bearings about logistics, supply
chain management or the LPI. Morse and Fraser (2004) offered a crucial analysis with the 1999
ESI, fighting the ESI developed any inaccurate effect in which Western countries have been a lot
more lasting compared to the creating planet because methodological tendency like the signal
assortment. In the same way, Atici (2009) and Siche et al. (2008) have been essential in regards
to the ESI regarding computing the environmental sustainability of the countries.

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No matter, Hens et al. (2004) utilized the particular ESI technique to be able to compute the
particular ESI report regarding Shandong Province, China and identified in which the state has
been significantly powering the entire world common with regards to lasting advancement.
Simply afterwards, Vachon and Mao (2008) experimented with to manage the particular ESI
from your logistics point of view. While using the info coming from The Global Competitiveness
Report (2004-2005) and the 2005 ESI, they will reviewed the particular linkage among supply
chain durability and also sustainable advancement capturing environmental friendly efficiency,
company environmental friendly procedures and also sociable sustainability.

4. Social sustainability in selecting emerging economy suppliers


Introduction &Literature review
Industrialized regions firms such as U.S and Europe are more progressively relying on suppliers
from emerging economies in order to gain and ensure their competiveness advantage. What role
are being played by the social factors in the supplier relationships is a complex question.
The quantitative studies of the specific social drivers and out coming of socially sustainable
supplier selection in the emerging economies are very rare. Our work is to address and fill this
gap by two ways.
The theoretical technique that apply to research about this objective is the stakeholder theory,
this theory defines the fundamental idea behind the sustainable conduct. Firms should follow and
consider stakeholders and interests of community in order to avail their long term survival and
prosperity
This void is addressed by our article by the examination of two questions: First, how much firms
stakeholders make pressure on firms to consider social standards in the selection of suppliers
from emerging economies?
The research questions that are translated into our studys hypothesis. The first 3 hypothesis are
focusing on stakeholders pressures from government, employees and customers have an
antecedent impact in the shaping of firms socially sustainable supplier selection.

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Another or second set of three hypothesis questions examines the relationship between supplier
selection and the three outcomes that are investigated which are (buying firms reputation,
organization learning, and suppliers capabilities).
We conceptualize supplier selection to the degree at which firms supplier selection process make
ensure that the supplier organization are not going to violate the common standards in western
countries
To research our questions a theoretical model is developed by us and we test it in a sample of 244
U.S and German manufacturing, retail and construction firms.

5. Corporate social responsibility in supply chains of global brands: a boundary less


responsibility? Clarifications, exceptions and implications
Introduction & Literature review
The shareholder theory of corporate social responsibility (CSR) highlights a broad set of social
accountabilities for business. Shareholders, as used in this theory, refer to those persons or
groups who may affect or are affected by the association (Clarkson, 1995; Freeman, 1984, 1994).
They include a wide change of securities, and as recommended by Mullins (2002), might be
convened under six main Slogans employees, shareholders, consumers, government, community
and the environment, as Well as groups such as dealers, profession combinations, and
commercial links and even participants. In this regard, CSR can be generally defined as an
organizations commitment to operate in an economically and naturally sustainable manner while
identifying the benefits of its investors.
They produce harmful community feelings and habitually antipathies towards the global
products succeeding irresponsible activities along their supply chain. These harmful
observations of firms persist, irrespective of the locus of the guilty suppliers on the supply
chain variety of the principal procuring firm. This appearance tends to put organizations under
pressure to bear unspecified responsibilities for their wide and long supplier links.
Responsibility as accountability of clarification and expression of supply chain from earliest
times, philosophers have kicked to unravel the capital of imports fixed in the period

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responsibility or the appearance to be held responsible. The term and the appearance are both
related with the thought of ethics.
Corporate social responsibility of supply chain have the ethical obligation to produce essential
and complete evidence required by the market to meet out punishment or distribute reward. This
will organize accountability to the marketplace, which cannot be achieved through selfregulation.

3. Research Method
Jennings (2004) and Carter' and Jennings (2002b). Similarly, PSR was operationalized utilizing
scale items from an earlier analysis which demonstrated that PSR is a higher-order construct
consisting of five unique dimensions: the environment, diversity, human rights, philanthropy, and
safety (Carter and Jennings, 2004). Carter and Jennings (2004) scale items were used to measure
the study's remaining constructs. Hence, valid and reliable existing scales were employed based
on the scales developed by Carter and Jennings (2004). The scale items were then translated into
the local language (which is Thai in this case) using a back translation method. The backtranslation technique has been reported as a technique frequently applied by management
researchers (Matsumoto, 1994; Hwang et al., 1996).
As said by Carter and Jennings, 2004, the PSR involves reasoning of high level theory lying of
five exclusive scopes below:
1.
2.
3.
4.
5.

The environment;
Diversity;
Human rights;
Philanthropy;
And safety.

Carter and Jennings (2004) to be able to determine the particular studys remaining constructs,
the particular scale objects have been employed. With the back translation technique, the scale
items had been after that converted into the local language (Thai). This back-translation practice
has been documented like a method often used through administration scientists (Matsumoto,
1994; Hwang et al., 1996).

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Both Scholars and practitioners does a preliminary test of the survey to determine what is
intended to measure. (Heeler and Ray, 1972). Any kind of questions that have been uncertain or
perhaps in which failed to relate with the particular construct regarding interest have been or
perhaps removed.
Response to Survey
One hundred and ninety seven functional studies had been obtained. This particular led to a
highly effective response rate of 49.25%. One of the came back survey instruments, 31% of
respondents experienced 200 employees or even less, 25% of the respondents experienced 201 to
500 employees, 25.9% experienced 501 to 2,500 as well as 18.1% experienced in between 2,501
and 10,000 employees. These types of data claim that participants mainly signify moderate in
order to big size organizations, based on Thailand's Industrial Classification by the number of
employees.
Non-response bias
Non-response bias can easily are present together with questionnaire study, despite having
comparatively large response rates (Lohr, 1999). A single frequently utilized method of
examining non-response bias is always to examine the particular responses regarding early on
questionnaire respondents to be able to people lately answerers (Lambert and Harrington, 1990).
The particular supposition the following is in which overdue answerers tend to be feature
regarding non-respondents as compared to are usually early on answerers (Armstrong and
Overton, 1977).
Main informant issue
A couple of actions have been obtained to make sure that respondents of survey have been wellinformed (Campbell, 1955) and also proper (key) informants. Initial, the particular questionnaire
has been resolved to be able to purchasing managers and executives, because the link between
the particular pre-test and also pilot test suggested in which employees on the manager stage or
maybe more have been able to addressing the particular study's inquiries (John and Reve, 1982).
Furthermore, inquiries have been within the questionnaire which usually resolved the particular
understanding of respondents and also ability to be able to response the particular scale items in
which assessed the particular constructs of study (Kumar et al., 1993). A couple of informants,

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who have been simply "somewhat involved" inside PSR initiatives for starters year or perhaps a
smaller amount, have been eradicated coming from more studies.

In relationship with the research framework, the following hypotheses are developed to examine
the relationship among selected variables.
Ha1:

Intensity of customer social pressures has a significant relationship with Intensity of

middle management social initiatives in Purchasing and Supply Chain.


Ha2:

Intensity of government social pressures has a significant relationship with Intensity of

middle management social initiatives in Purchasing and Supply Chain.


Ha3:

Socially sustainable supplier selection has a significant relationship with Intensity of

middle management social initiatives in Purchasing and Supply Chain.


Ha4: Buying firm reputation has a significant relationship with Intensity of middle management
social initiatives in Purchasing and Supply Chain.

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Ha5: Supplier performance has a significant relationship with Intensity of middle management
social initiatives in Purchasing and Supply Chain.
Ha6: Extent of organizational learning in supplier management has a significant relationship with
Intensity of middle management social initiatives in Purchasing and Supply Chain.
Ha7:

Association of Intensity of customer social pressures, Intensity of government social

pressures, Socially sustainable supplier selection, Buying firm reputation, Supplier performance,
Extent of organizational learning in supplier management have a significant impact on Intensity
of middle management social initiatives in Purchasing and Supply Chain.

4. Findings
Previous sections explain the aim, background, and methodology of the research. This section
will present the examination of hypotheses mention in section
Data has been collected through 50 respondents. To measure the reliability of the adopted
questionnaire Cronbachs Alpha test was used to ensure that the values are greater than 0.5
(Sekaran, 1998). Cronbachs Alpha test confirmed that all variables are well above the standard
level.
4.1 Association of Intensity of customer social pressures, Intensity of government social
pressures, socially sustainable supplier selection, buying firm reputation, Supplier performance,
Extent of organizational learning in supplier management with Intensity of middle management
social initiatives in Purchasing and Supply Chain.
\To test Ha1 Ha6 we employed Pearsons correlation test. The correlation metric is presented as
follows:

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As presented in the above metric the relationship of Intensity of customer social pressures,
Buying firm reputation, Extent of organizational learning in supplier management with Intensity
of middle management social initiatives in Purchasing and Supply Chain is reported low (r=.183,
r=0.300, r= 0.320 respectively), however the sig value is less than 0.05 which means that the
relationship is highly significant. Except customer social pressures whose sig value is high 0.202
and it has insignificant relationship
However, the relationship of Intensity of government social pressures, socially sustainable
supplier selection, Supplier performance with organizational commitment is reported at
moderate level (r= 0.479, r=0.470, r=0.508) moreover, the relationship is also highly significant.
Hence, the results of Ha1 Ha6 are accepted.

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To test Ha7 we employed multiple regression test. The MLR results are presented as follows:

Model Summary
Model

R Square

.602a

Adjusted R

Std. Error of the

Square

Estimate

.363

.274

.63461

a. Predictors: (Constant), Mean_OLSM, Mean_FR, Mean_CSP, Mean_Per,


Mean_GSP, Mean_SSS

ANOVAa
Model

Sum of Squares
Regression

df

Mean Square

9.849

1.642

Residual

17.318

43

.403

Total

27.167

49

Sig.
.003b

4.076

a. Dependent Variable: Mean_MMSI


b. Predictors: (Constant), Mean_OLSM, Mean_FR, Mean_CSP, Mean_Per, Mean_GSP, Mean_SSS

Coefficientsa
Model

Unstandardized Coefficients

Standardized

Sig.

Coefficients
B

Std. Error

(Constant)

.567

.702

Mean_CSP

-.068

.156

Mean_GSP

.290

Mean_SSS

Beta
.808

.424

-.062

-.433

.667

.166

.279

1.744

.088

.152

.164

.156

.927

.359

Mean_FR

.161

.163

.139

.985

.330

Mean_Per

.335

.204

.271

1.645

.107

-.042

.184

-.038

-.228

.820

Mean_OLSM
a. Dependent Variable: Mean_MMSI

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The un-standardized regression coefficient for predicting Intensity of middle management social
initiatives in Purchasing and Supply Chain from Association of Intensity of customer social
pressures, Intensity of government social pressures, Socially sustainable supplier selection,
Buying firm reputation, Supplier performance, Extent of organizational learning in supplier
management

are

0.567,0.290,0.152.0.161,0.335,0.42,0.68

respectively;

the

standardized

coefficient are 0.62,0.279,0.156,0.139,0.271,0.038 the significance level (sig.) or p of all


predictors are reported as significant since all values are less than .05 and the degree of freedom
for the F test are 6 for the regression and 43 for the residual. Hence it may be reported as
B=0.567+0.290+0.152. +0.161+0.335+0.42+0.68), F (6, 43) = 4.076, p < .05; r = .602.
The multiple regression predicting middle management social initiatives in Purchasing and
Supply Chain from the reported variables is statistically significant because the Sig. is less
than .05. Thus, we accept the hypothesis of association and state that middle management social
initiatives in Purchasing and Supply Chain is statistically significant predictor of reported
variables. Using the R2 from the model summary , we can say that r2 = .363, indicating that
36.3% of the variance in middle management social initiatives in Purchasing and Supply Chain
is predicted by Association of Intensity of customer social pressures, Intensity of government
social pressures, Socially sustainable supplier selection, Buying firm reputation, Supplier
performance, Extent of organizational learning in supplier management.

5. Discussion and conclusion


The finding of this study related to government social pressures, socially sustainable supplier
selection, buying firm reputation, Extent of organizational learning in supplier management
shows that it has significant and positive impact on middle management social initiatives in
Purchasing and Supply Chain.
Government social pressure is one of the factor that has stronger influence on middle
management social initiatives in Purchasing and Supply Chain. Several authors have explored

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the motives for SSCM implementation. These are generally listed as government regulations,
(Sarkis 2001; Roberts 2003; Darnall et al. 2008; Seuring and Muller 2008b; Bjork lund 2011).
Sustainable supplier selection has also the significant relationship and is reported at moderate
level with middle management social initiatives in Purchasing and Supply Chain because
appropriate stakeholder management positively impacts the key relationships that an
organization has with individuals and other organizations (Jones, 1995). This includes lowering
transaction costs (Williamson, 2008) and creating firm resources (Barney, 1991; Hunt and Davis,
2008). In the context of our study, a firm can choose and shape its relationships with suppliers by
applying a code of conduct in supplier selection (Jiang, 2009). Selection efforts, by nature,
determine the baseline quality of the firms supplier portfolio in that the firm decides on the
actual contract parties.
Buying firm reputation has a significant relationship with middle management social initiatives
in Purchasing and Supply Chain. The buying firms interactions with its suppliers from emerging
economies enhance its ability to effectively cooperate, coordinate, and integrate with them
(Carter, 2005). Garvin (1993) points out that the firms ability to effectively manage its
stakeholder relationships determines how effectively employees learn and how they apply what
they have learned for the benefit of the company.
Supplier performance has a significant relationship and reported as moderate level with middle
management social initiatives in Purchasing and Supply Chain. The companies who take PSR
initiatives claim that they improved supplier performance in terms of enhanced quality and better
supplier relations, Haghandish (2006).
Organization learning in supplier management has a significant relationship with middle
management social initiatives in Purchasing and Supply Chain. The scope of organizational
learning in supplier management is hypothesized as the degree to which the middle management
take initiatives on PSR that is backed by the enhanced ability to effectively cooperate,
coordinate, and integrate with them. Garvin (1993) points out that the firms ability to effectively
manage its stakeholder relationships is determined by how effectively employees learn and how
they apply what they have learned for the benefit of the company.
As per the conclusions of this study, it concludes that the relationship between customer social
pressures, government social pressures, socially sustainable supplier, buying firm reputation,
Supplier performance, organizational learning in supplier management were statistically
significant with middle management social initiatives in Purchasing and Supply Chain. Middle
management social initiatives has low correlation with customer social pressures, buying firm
reputation and organizational learning whereas it has moderate correlation with government
social pressures, socially sustainable supplier and supplier performance. Furthermore, overall the

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model is fit and is significant also that is why we can say that it is open and approachable for
future research.

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Department of Industrial Management and Logistics