The twin challenges of CSR and globalisation

Globalisation and corporate responsibility are the two main challenges faced by organisations, according to a recent Chief Procurement Officer Survey.

While the presence of globalisation in any business has become the norm, the survey, conducted by Capgemini Consulting, found social and environmental responsibilities to be complicating factors.

The report said: "Health issues in consumer products, global warming, exploitation of disadvantaged communities, as well as high-profile quality issues all have an impact on the procurement strategy."

Capgemini said procurement towards dealing with these twin factors would play a huge part in determining who would be successful in the upcoming decade.

While three in four respondents to the survey said they had modest savings targets of 5 per cent or less, the report said a decrease in top-line growth for many businesses is likely to require more aggressive cost-reduction targets.

The report continued that strategies across geographically diverse organisations were very similar.

The survey indicated that globalisation has brought issues of governance, transparency and know-how to procurement.

Capgemini reported that critical activities planned for 2008 across the globe had the common features of organisational design, alignment of operating models, emerging market sourcing and a drive to improve spend visibility.

Source: Capgemini Consulting