Which concept is used to measure and report the social impact of sourcing activities?

Which concept is used to measure and report the social impact of sourcing activities?

• A. Corporate Social Responsibility (CSR)
• B. Utilitarianism
• C. Rights and Duties
• D. Ethical Sourcing

Answer: (A)

Corporate Social Responsibility provides the framework for measuring and reporting the social impacts tied to sourcing. It asks a company to consider how its sourcing affects workers, communities, and broader society, and to track and communicate that performance. CSR drives the collection of metrics on labor conditions, fair wages, health and safety, community development, and supplier practices, often through sustainability or CSR reports and standards like GRI or ISO 26000. This makes the social footprint of sourcing visible to stakeholders and supports accountability and continuous improvement across the supply chain. Utilitarianism is about outcomes in moral theory but doesn’t prescribe corporate measurement and disclosure. Rights and Duties focus on moral rights and obligations rather than a reporting framework. Ethical Sourcing describes ethical procurement practices but not the structured measurement and reporting system CSR provides.

Corporate Social Responsibility provides the framework for measuring and reporting the social impacts tied to sourcing. It asks a company to consider how its sourcing affects workers, communities, and broader society, and to track and communicate that performance. CSR drives the collection of metrics on labor conditions, fair wages, health and safety, community development, and supplier practices, often through sustainability or CSR reports and standards like GRI or ISO 26000. This makes the social footprint of sourcing visible to stakeholders and supports accountability and continuous improvement across the supply chain. Utilitarianism is about outcomes in moral theory but doesn’t prescribe corporate measurement and disclosure. Rights and Duties focus on moral rights and obligations rather than a reporting framework. Ethical Sourcing describes ethical procurement practices but not the structured measurement and reporting system CSR provides.