Perspectives of Suppliers on Corporate Social Responsibility in Emerging Economies : China and Turkey

Corporate Social Responsibility is attracting more public attention in business world nowadays. It has evolved well in developed countries while there still remains some CSR issues in emerging economies such as China and Turkey. Thus, when some multi- national enterprises select suppliers in China and Turkey they come with CSR requirements and pressure. In this supplier-buyer context, less study has been carried out from suppliers’ perspective on how they implement the CSR pressure and whether it has positive or negative impact on their relationship with the buyer and impact on themselves. In addressing this problem in this particular supplier-buyer environment, the purpose of this study is to explore the perspectives and practices of suppliers regarding CSR in emerging economies like China and Turkey with strong export relationships to companies in developed countries. In order to achieve this purpose, this thesis presents a qualitative study supported by primary data gathered by interviews and secondary data gathered by examining company documents. One Chinese supplier and one Turkish supplier were chosen as two cases in this study. Both have supplier-buyer relationships with the same buyer which has a large role in the textile industry. Interviews were conducted with two suppliers respectively to gain research data. The result of the study shows that: (1) CSR is perceived differently by Turkish and Chinese supplier. The Chinese supplier emphasizes their CSR perspectives on only economic and philanthropic levels while the Turkish supplier includes also ethical and legal levels. (2) In supply chains, both suppliers comply with codes of conduct from the buyer and additionally conduct CSR activities voluntarily. Both suppliers focus on philanthropy and community contribution but the Turkish supplier work on environmental friendly products. (3) There is no direct positive impact linked with CSR compliance in terms of supplier-buyer relationship for both suppliers. In other words, requirements on CSR from the buyer do not contribute much to their supply chain relationships. (4) CSR practices bring competitive advantages for both suppliers. Those competitive advantages include innovation capability and positive corporate reputation