Project Management Issue Report - Essay Example

1.0 INTRODUCTION With the advent of globalization trends across the world, companies have been forced to fit into a smaller sphere, with higher levels of transparencies demanded by the clients and society. With a willingness to be viewed as one of the “good corporate and responsible citizens” of the society, companies are opting for the concept of Socially Responsible Procurement. This is concerned with the setting up socially responsible policies and regulations, investment of resources and capital in a manner that enhances the social value and benefit for the company, (McCrudden, 2004). This concept is basically driven by the idea to motivate the corporate sector towards social welfare and up-liftment while implementing their business strategies and corporal activities.  2.0 FUNDAMENTALS OF SRP This part will describe the various fundamentals / elements of socially responsible procurement methods opted by companies. 2.1 Accountability towards a greener environment – the first fundamental of SRP is maintaining environment standards in all business and operational activities. Corporate houses and other organizations have realized the requirement to be responsible for the health of the environment, and strictly adhere to the environment friendly ways. Green procurement is one of the most innovative ideas and is described as the purchasing, of resources and other business related services that may have the least damaging effect on the surroundings, (McCrudden, 2004). 2.1 Human Rights – SRP is also related to the rightful promotion of human rights in companies. These rights include – child labor, union management, health and safety of employees, compensation concerns and employee exploitation, (Ridley, 2007). It is expected that companies  follow a SRP programme maintain a strict and realistic approach to human rights standards. 2.3 Equal Opportunity – SRP clearly enlists the need for elimination all types of employee discrimination at the work place (Archer & Barraket, 2009). Any kind of unfair treatment needs to be strictly controlled and equal opportunity standards should be maintained, (McCrudden, 2004). Quality employment techniques and practice cultures offered by the management reveals a strong dedication to socially responsible procurement programs. 2.4 Practice of better Corporate Governance Structure by Companies – SRP promotes the necessary condition on companies and organizations to behave responsibly and in shared favor of the society. An effective corporate governance structure smooths the process of fair trading, transparency in company and shareholders laws, observance with appropriate laws and regulations. 2.5 Supplier Variety – SRP promotes the initiatives by companies to enhance the variety of suppliers. This pertains to giving contracts to less privileged, underrepresented groups, women owned small and medium scale businesses and services, retired, disabled and minority communities.  This in turn assist in creating jobs for this underprivileged section of the society and subsequently create a uniform levels of living standards to some extent in the society, (Archer & Barraket, 2009).  3.0 SRP AND ITS IMPACT ON SOCIETY SRP helps companies to foster a sustainable business which has no or least negative effects on the society and strives to offer quality life and standards. Pursuing progressive environmental strategies and individual civil rights in every company decision matches with the fundamentals laid down by the SRP guidelines, (Ridley, 2007). Moreover, utilization of nature friendly products and s4ervices while meeting the conscious demands of the organizational profits helps to create a better future environment of the society,  (McCrudden, 2004). Shareholders of the company can now play a more prominent role in shaping the transparency and accountability status of the companies. SRP gives importance to NOT negotiating with the quality standards of the product or services involved in a business, which makes a strong impact of good corporate behaviour by the companies. The laid down policies of an SRP programme boosts a principled and conscientious approach to the decision making by the corporates. Moreover, the SRP policies make sure that the company shareholders are duly and timely informed about every decision of the company and their rights about the business, (Bovaird, 2006). Also the SRP standards ensure that compensations standards set by the company management should at the best levels to ensure high levels of efficiency.  4.0 ADVANTAGES OF SRP   Basically, the advantages of SRP can be easily categorized into two distinct types. The first advantage is the motivation of the industry towards social innovation and improvement. The second advantage of SRP is production of larger value of wealth used up for full filling social and business targets, (Munoz, 2009). Detailing in points about the advantages derived from following a socially responsible procurement, include: 4.1 Environmental Advantages: • Decline in liberation of toxic gases and other waste from industry which leads to a better quality of natural resources like air and water • With the decrease in the toxic levels, it is much easier to meet the issues of climate change and other environment concerns   • With less usage of toxic products and services in the industry, leading to less demand of these products and services. This will ultimately lead to a reduced production of such products and services 4.2 Social Advantages: • Companies offer better working environment with provision for health and safety of employees • Companies practice and maintain support to the deprived and poor groups  • Upgrading in the remuneration and other employee benefits • Enhancement of employee skill and expertise with the help of proper training and camps 4.3 Economic Advantages: • SRP promotes a knowledge based economy which works to improve skills and living standards • To stimulate demand for environmental friendly products • SRP maximizes the recycling and re-using of many products, thus saves a lot of costs and damage to the surroundings, thus giving more value of money 5.0 EXAMPLES OF SRP IMPLEMENTATION   SRP has gained a lot of acceptance by companies and the corporate sector in UK and Australia. Many of these companies have been trying to achieve SRP standards in their companies and society. Some of the big companies like Worley Parson, BHP Billiton have come to the forefront and taken the lead in implementing SRP, (Mission Australia, 2008).   Citing a real example, the world’s largest mining company - BHP Billiton, has implemented a carbon point’s evaluation and costing system which helps the company to evaluate the costs and impact of the carbon points that are earned by implementing carbon emission reduction strategies and operational techniques. Also, in accordance with the corporate responsibility standards of SRP, the company has also initiated frequent meetings with the locals and company shareholders. These meetings are aimed at discussing the rights and general shareholder / company information and common interests of the company and the locals. (Mission Australia, 2008). The company has taken a step forward in improving the way of life for its employees and locals by offering medical facilities, housing facilities, education and cultural activities for children. Apart from this, the company has also set up community centres where the locals can come and register their grievances and disputes that are a result of the company activities in the surrounding areas. In another instance, a number of construction companies have been under constant pressure from the governmental agencies regarding safety and environment norms. As a result of which, these companies have implemented safety measures for their employees at the construction sites and techniques to decrease the water consumption, hazardous waste and carbon emissions level.       6.0 REFERENCES • Archer, V. & Barraket, J., 2009. Economic participation for health: an information and resource guide for local governments working with community enterprise, Melbourne: Centre for Public Policy.  • Bovaird, T., 2006. Developing New Forms of Partnership with the Market in the Procurement of Public Services. Public Administration, 84(1), 81-102 • McCrudden, C., 2004. Using public procurement to achieve social outcomes. Natural Resources Forum, 28(4), 257-267 • Mission Australia, 2008. Working for Renewal: an evaluation of Mission Australia’s UREEP a social enterprise and transitional labour market program, Melbourne, Victoria: Mission Australia. • Munoz, S., 2009. Social enterprise and public sector voices on procurement. Social Enterprise Journal, 5(1), 69 – 82 • Ridley-Duff, R., 2007. Communitarian Perspectives on Social Enterprise*. Corporate Governance: An International Review, 15(2), 382-392 Read More