10.4 Key CR intervention in the supply chain

Table 31 Key CR intervention in the Supply Chain

CR intervention in the supply chain over the last three years across the overall sample was negligible with most companies failing to register categorical responses (65% stating they didn’t know or couldn’t say). Of these, PSUs were the largest category at 78 percent, which was unsure. The companies that had intervened in the area of sustainable agricultural activity were mostly MNCs at five percent. The same trend was seen against in-house activity with MNCs emerging the most involved company category in this activity at five percent. Getting the supplier to follow pollution control measures was one intervention point for PSUs (only) at one percent. MNCs displayed the highest supply chain CR intervention over the last three years.

10.5 Mechanism to review CR performance of the suppliers

Explanatory note: Only 11 percent of the respondents reported of having compliance mechanisms to review the suppliers’ CR performance. Indian companies had the highest proportion (75%) citing the absence of any system to monitor supplier performance followed closely by MNCs at 74 percent. PSUs, significantly, had 31 percent saying that they lacked awareness or knowledge of the existence of these mechanisms. Across sectors, Power and FMCGs at 19 and 18 percent respectively reported the highest rates of CR policy performance review mechanisms. The companies which reported having compliance mechanism were asked about the departments responsible for reviewing the suppliers’ CR performance.

10.5.2 Department responsible for reviewing CR performance of the suppliers

The major departments mentioned by the respondents were Human Resource Department (32%), Administration Department (13%) and Marketing Department (10%). Around 19 percent of the respondents were unable to name the department responsible for reviewing the CR performance.