Corporate Social Responsibility in Purchasing and Firm Performance

Abstract

This article focuses on corporate social responsibility (CSR) in purchasing issue. Especially, suppliers play an essential role in the overall CSR efforts of the buyer firm. The link between CSR and firm performance is one of the most widely recognized issues in research, particularly in the purchasing function which is being recognized as one of the critical elements for improving the sustainability of the company. It is found, after reviewing the available literature, that only a few prior researches have investigated the relationship between socially responsible supply chain and business performance. The aim is to fill the gaps in understanding the role of CSR in purchasing in firms’ performance in developing countries. Thus, this research develops a survey instrument based on a set of established hypotheses and a conceptual framework in order to investigate the relationship. Three main concepts (CSR in Purchasing, performance outcome, and purchasing practice) and their relationships with each other are described, and finally conclude with significant hypotheses for future research in this area.

Keywords: CSR in purchasing, Long-term relationships with suppliers, Firm performance, Supplier performance