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 customer’s 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 today’s 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 firm’s 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.

CORPORATE SOCIAL RESPONSIBILITY IN PURCHASING AND SUPPLY CHAIN2 | P a g e

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 with regard to nonprofit
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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 enhances
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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 firm’s 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
managers are now accepting such programs that have positive impacts over minority business
enterprises.
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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 versus-
firm 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 firm’s 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 firm’s supply chain strategy and also company efficiency. Specifically, they will
declare that supply chain strategy must help the particular firm’s strategy and also improve the
firm’s responsiveness and also efficiency available on the market (Qi et al., 2011; Mitra and
Bhardwaj, 2010; Narasimhan et al., 2008).
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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.

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
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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 firm’s
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 study’s 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.
Another or second set of three hypothesis questions examines the relationship between supplier
selection and the three outcomes that are investigated which are (buying firm’s reputation,
organization learning, and supplier’s capabilities).
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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 organization’s
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 ‘responsibility’ or
the appearance ‘to be held responsible. The term and the appearance are both related with the
thought of ethics.
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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 self-regulation.

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 back-
translation 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. The environment;
2. Diversity;
3. Human rights;
4. Philanthropy;
5. And safety.

Carter and Jennings (2004) to be able to determine the particular study’s 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).

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

Ha5: Supplier performance has a significant relationship with Intensity of middle management

social initiatives in Purchasing and Supply Chain.

CORPORATE SOCIAL RESPONSIBILITY IN PURCHASING AND SUPPLY CHAIN13 | P a g e

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 Cronbach’s Alpha test was used to ensure that the values are greater than 0.5
(Sekaran, 1998). Cronbach’s 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 Pearson’s 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
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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.

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

Model Summary
Model R R Square Adjusted R Std. Error of the
Square Estimate

1 .602a .363 .274 .63461

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

Mean_GSP, Mean_SSS

ANOVAa
Model Sum of Squares df Mean Square F Sig.

Regression 9.849 6 1.642 4.076 .003b

1 Residual 17.318 43 .403

Total 27.167 49

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 T Sig.
Coefficients

B Std. Error Beta

(Constant) .567 .702 .808 .424

Mean_CSP -.068 .156 -.062 -.433 .667

Mean_GSP .290 .166 .279 1.744 .088

1 Mean_SSS .152 .164 .156 .927 .359

Mean_FR .161 .163 .139 .985 .330

Mean_Per .335 .204 .271 1.645 .107

Mean_OLSM -.042 .184 -.038 -.228 .820

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.
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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 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 firm’s 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 firm’s 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 firm’s 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 firm’s 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
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pressures, socially sustainable supplier and supplier performance. Furthermore, overall the 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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