Many companies are subcontractors, i.e., they deliver components to other companies that resell the finished product or a more complete subcontract. Others provide services or support products for other companies.
These subcontractors are increasingly met with demands or desires from their customers to think about CSR. These demands usually originate in the customer’s own work with CSR, which almost always includes some sort of supplier management. In this way, the customer sets requirements for their suppliers to take on social responsibility. In the large international groups, e.g., Ikea, Vestas or Siemens, these requirements are frequently seen as a cascading waterfall going down the supplier chains.
This is why B2B (business-to-business) branding has become so central.
These requirements from business customers will be even stricter in the coming years. According to a series of new legislation in various parts of the world, companies must report on non-financial areas – that is, CSR. This requires that they incorporate CSR into their strategy and operation – including supplier management. As a result, more CSR requirements are being passed down to their suppliers.
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