Page 74 - Operations Strategy

Judging OPERATiOns PERfORmAnCE AT A sOCiETAl lEvEl? 49
(sometimes conflicting) objectives of its stakeholders and set it objectives accordingly.
But although each of these stakeholder groups are likely to be interested in operations
performance, they are likely to have very different views of which aspects of perfor-
mance are important.

Corporate social responsibility (CsR)
This idea that operations should take into account their impact on a broad mix of
stakeholders is often termed ‘corporate social responsibility’ (generally known as CSR).
According to the UK Government’s definition; ‘CSR is essentially about how business takes
account of its economic, social and environmental impacts in the way it operates – maximising
the benefits and minimising the downsides. . . . Specifically, we see CSR as the voluntary
actions that business can take, over and above compliance with minimum legal requirements,
to address both its own competitive interests and the interests of wider society.’ A more direct
link with the stakeholder concept is to be found in the definition used by Marks and
Spencer, the UK-based retailer. ‘Corporate Social Responsibility . . . is listening and respond-
ing to the needs of a company’s stakeholders. This includes the requirements of sustainable
development. We believe that building good relationships with employees, suppliers and wider
society is the best guarantee of long-term success. This is the backbone of our approach to CSR.’
Figure 2.3 illustrates some main stakeholder groups for a parcel delivery company,
together with some of the aspects of operations performance in which they may be
interested. The company is clearly concerned to satisfy its customers’ requirements for
fast and dependable services at reasonable prices, as well as helping and improving its
own suppliers (a whole range of organisations, from those who print packets to those
who clean the offices). Similarly, it is concerned to ensure the long-term economic value
delivered to its stockholders. But the company also has a responsibility to ensure that
its own employees are well treated and that society at large is not negatively affected by

Figure 2.3 broad objectives for a parcel delivery operation applied to stakeholder
groups

Society
Increase employment
Enhance community well-being
Produce sustainable products
Ensure clean environment
Suppliers Customers
Continue business Appropriate product or
Develop supplier service specification
capability Consistent quality
Provide transparent Parcel delivery Fast delivery
information Dependable delivery
Acceptable price

Shareholders Employees
Economic value Continuous employment
from investment Fair pay
Ethical value from Good working conditions
investment Personal development

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