Ethical Sourcing and the Supply Chain

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Companies doing business internationally deal with complex sourcing and supply chain issues. Unfortunately, many multinational corporations have failed to include Corporate Social Responsibility practices in their global operations. Due to a number of international human rights disasters resulting from lack of supply chain auditing, corporations are rapidly becoming more transparent and are adopting globally accepted codes of conduct.

Explain why a firm is responsible for its supply chain. If the answer is that a firm is not responsible, discuss an organization that exemplifies this. If the answer is that the firm is responsible, then how far down the supply chain does this extend (i.e., to immediate suppliers, the suppliers’ suppliers, or beyond)?