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Chapter 5

Supply chain management

Supply chain management is an important part of a company's CSR policy. It is
common place to have policies in place to prevent slavery in the supply chain, lower
carbon footprint and promote sustainable sourcing. Companies are expected to be
able to track the carbon footprint not only of their own manufacturing activities but also
their transportation, distribution and procurement activities.

The following are examples of practices adopted:

 Purchasing: Only products from a sustainable and ethical source should be
purchased, e.g. a furniture manufacturer may purchase timber from sustainable
forests only.

 Supplier selection: One of the key criteria to use when choosing between
suppliers should be their adoption of sustainable development policies.

 Location: The distance between the supplier and the company should be
minimised.

Brand image

A strong brand is what differentiates a company and/or its products in a competitive
industry. A company can link unique characteristics and images to its brand name and
passing its message to consumers, so that their distinct feelings about the brand are
positively affected. As a result, brand image management is a key point in marketing
strategy.

In recent times CSR has become a key element in the promotion of brand images.
Customers have expectations that companies are implementing CSR policies. When
CSR policies are communicated, it becomes a strategic branding tool. CSR initiatives
can therefore strengthen a company's brand image and is therefore becoming a
strategic necessity.

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