Supplier assessment based on corporate social responsibility criteria in Indian automotive and textile industry sectors

Figures & data

Figure 1 CSR themes and criteria.

Table 1 CSR criteria and sub-criteria (independent variable).

Criteria	Sub-criteria	Definition	Source
Discrimination	A2. Policies against discrimination	Discriminations in hiring age and gender	Charter et al. (2001), Gray et al. (1995), Jay (2010), Kolk and Tulder (2002) and Williams (2003)
	A3. Procedures to prevent discrimination	At the time of recruitment
Abuse of human rights	B1. Signed employment contract	The percentage of workers having a written and signed employment contract	Ahmad and Balu (2006), Caroline (2008), Carter et al. (2002), Dawkins and Ngunjiri (2008), Lindgreen et al. (2009), Kolk and Tulder (2002) and Handler (2005)
	B2. Resignation notice	Procedure allowing workers to resign with no penalty after giving reasonable notice
	B3. Safeguarding	Safeguarding of workers from potentially hazardous machinery
	B4. Disciplinary aspects	Investigation procedures for disciplinary aspects
	B6. Training on handling of hazardous environment	Providing training on handling of hazardous materials
	B7. Written rules	Displaying the rules and regulations
	B8.Warning procedure	Procedure for issuing warning to the worker for breaking the company rules
Child labour	C2. Identification procedure	Procedures for discovering workers below 18 years	Kolk and Tulder (2002) and Williams (2003)
	C3. Verification of employment	Documented procedure to verify that your suppliers do not use child labour
	C4. Record on number of applications below 18	During the last 12 months how many persons below the employment age 18 applied for job
	C5. Evidence for date of birth	Personnel records including evidence of the birth date of each worker
Long working hours	D2. Regular rest days	All the workers have one day rest in a seven-day period	Charter et al. (2001), Jay (2010) and Kolk and Tulder (2002)
D3. Practice of allocating overtime to limited workers	Limited workers will be given overtime (not all the workers)
	D4. Basis on which worker accept overtime	Overtime is given voluntary or only when required
	D5. Legal working hours limit	Legal limit of working hours for that area
Unfair competition	E1. Bribery	Procedures to prevent corruption including bribery	Ahmad and Balu (2006), Choi and Wu (2009), Choi and Kim (2008), Graafland and Ven (2006), Kannan and Tan (2002), Degraeve and Roodhooft (2006) and Sharland et al. (2003)
E2. Advertisement	Procedures to ensure standards of fair business including advertising and competitive marketing
	E3. Non-disclosure of confidential information	Information about customers, channel partners, suppliers, workers and other business partners
	E4. Ethical violation	Procedure for workers to report ethical violations, harsh treatment
	E6. Disciplinary actions	Process for investigating reports of ethical or legal misconduct and for taking disciplinary actions
	E7. How many legal violations	During the last 12 months, how many confidential notifications regarding ethical or legal violations were investigated
	E8. Procedure to avoid bribery	Programme to avoid excessive gift giving, extortion or embezzlement on the part of suppliers
Pollution	F1. Procedure for recycling	Procedure for the management of waste water including monitoring, characterisation and treatment	Lee (2009), Carter et al. (2000), Charter et al. (2001), Handfield et al. (1997), Jay (2010), Rao (2002), Thanaraksakul and Phruksaphanrat (2009), Ueltchy and Tate (2009), Montabon et al. (2007) and Williams (2003)
	F2. Management of solid waste	Solid wastes including collection, separation and disposal
	F3. Environmental permit	Environmental permits and managing competence with the permit requirements
	F4. Liquid waste closed loop recycling	Programme aimed at reducing the amount of waste water and solid waste generated
	F6. Safety training to the workers	Providing safety training to the workers

Table 2 CSR criteria and sub-criteria (dependant variable).

Criteria	Sub-criteria	Definition	Source
Discrimination	A1. Variation in pay	Discriminations in pay	Charter et al. (2001), Gray et al. (1995) and Jay (2010)
Abuse of human rights	B5. Number of abuse cases	During the last 12 months, how many abuse cases have occurred	Ahmad and Balu (2006) and Caroline (2008)
Child labour	C1. Labour policy	Scope of your labour policy	Kolk and Tulder (2002) and Williams (2003)
Long working hours	D1. Limit on overtime	For each worker the limit on overtime	Charter et al. (2001) and Jay (2010)
Unfair competition	E5. Legal misconduct	Programme to protect the identity of workers who report suspected cases of ethical or legal misconduct	Ahmad and Balu (2006), Choi and Wu (2009), Choi and Kim (2008) and Graafland and Ven (2006)
Pollution	F5. Recovery of discarded products	Programme to facilitate recovery of discarded products components or materials at the end of their useful life product	Carter et al. (2000), Charter et al. (2001) and Handfield et al. (1997)

Table 3 Factor loading and Cronbach's α for various sub-criteria.

Criteria	Sub-criteria	Automotive manufacturer suppliers	Cronbach's α	Textile ancillary parts suppliers	Cronbach's α
Discrimination	A1	0.778	0.628	0.804	0.742
	A2	0.764		0.915
	A3	0.865		0.815
Abuse of human rights	B1	0.811	0.599	0.651	0.695
	B2	0.672		0.642
	B3	0.776		0.788
	B4	0.818		0.787
	B5	0.832		0.833
	B6	0.432		0.754
	B7	0.653		0.528
	B8	0.611		0.769
Child labour	C1	0.868	0.616	0.908	0.631
	C2	0.798		0.682
	C3	0.655		0.733
	C4	0.856		0.787
Long working hours	D1	0.907	0.664	0.776	0.641
	D2	0.741		0.757
	D3	0.643		0.755
	D4	0.436		0.841
Unfair competition	E1	0.849	0.697	0.647	0.669
	E2	0.62		0.604
	E3	0.847		0.669
	E4	0.776		0.658
	E5	0.889		0.763
	E6	0.763		0.726
	E7	0.692		0.747
Pollution	F1	0.676	0.781	0.762	0.804
	F2	0.829		0.594
	F3	0.467		0.793
	F4	0.651		0.668
	F5	0.882		0.807
	F6	0.484		0.918

Table 4 Regression results of automotive manufacturers suppliers.

Criteria	Dependent variable	Independent variable	β	Mean	Standard error	t-Value	Significance level	Hypothesis
Discrimination	A1	A2*	0.669	0.385	0.077	6.601	0.000	H1a: supported
		A3*	0.368	0.592	0.122	2.853	0.007	H1b: supported
Abuse of human rights	B5	B1*	0.561	4.472	0.218	3.596	0.001	H2a: supported
		B2	0.136	1.806	0.138	0.851	0.402	H2b: not supported
		B3	0.034	3.102	0.145	0.189	0.851	H2c: not supported
		B4	0.061	2.822	0.093	0.411	0.684	H2d: not supported
		B6	0.128	0.288	0.104	0.764	0.449	H2e: not supported
		B7	0.194	0.685	0.206	1.317	0.194	H2f: not supported
		B8	0.005	1.801	0.147	0.832	0.410	H2g: not supported
Child labour	C1	C2	0.096	3.722	0.227	0.662	0.513	H3a: not supported
		C3	0.243	3.805	0.876	1.790	0.084	H3b: supported
		C4*	0.724	0.555	0.607	3.579	0.001	H3c: supported
		C5	0.106	0.805	0.575	0.577	0.568	H3d: not supported
Long working hours	D1	D2*	0.523	1.812	0.133	3.408	0.002	H4a: supported
		D3**	0.033	0.750	0.133	0.216	0.830	H4b: supported
		D4	0.309	0.192	0.234	2.229	0.030	H4c: supported
		D5	0.100	0.283	0.269	0.589	0.559	H4d: not supported
Unfair competition	E5	E1	0.090	3.371	0.147	0.720	0.478	H5a: not supported
		E2	0.053	2.914	0.144	0.418	0.679	H5b: not supported
		E3	0.165	2.228	0.162	0.948	0.352	H5c: not supported
		E4	0.165	1.885	0.160	1.339	0.192	H5d: not supported
		E6*	0.975	2.542	0.160	6.204	0.000	H5e: supported
		E7	0.104	4.485	0.165	0.850	0.403	H5f: not supported
		E8	0.282	2.584	0.115	2.503	0.016	H5g: supported
Pollution	F5	F1*	0.686	1.444	0.259	2.872	0.008	H6a: supported
		F2**	0.534	1.083	0.255	1.866	0.070	H6b: supported
		F3	0.054	1.333	0.325	0.166	0.869	H6c: not supported
		F4	0.162	1.666	0.171	0.806	0.427	H6d: not supported
		F6	0.220	4.641	0.165	2.278	0.028	H6e: supported
Notes: *Statistically significant predictor variable in the regression model at α = 5%. **Statistically significant predictor variable in the regression model at α = 10%.

Table 5 Regression results of textile ancillary parts suppliers.

Criteria	Dependent variable	Independent variable	β	Mean	Standard error	t-Value	Significance level	Hypothesis
Discrimination	A1	A2	0.938	0.725	0.061	16.254	0.000	H1a: supported
		A3	0.017	2.000	0.153	1.432	0.162	H1b: supported
Abuse of human rights	B5	B1*	0.612	1.121	0.095	0.507	0.000	H2a: supported
		B2	0.570	2.666	0.045	0.232	0.617	H2b: not supported
		B3	0.036	3.810	0.057	0.187	0.818	H2c: not supported
		B4*	0.078	0.393	0.078	4.985	0.000	H2d: supported
		B6	0.597	3.375	0.218	1.656	0.113	H2e: not supported
		B7	0.340	3.900	0.209	0.482	0.121	H2f: not supported
		B8	0.138	2.475	0.391	0.318	0.752	H2g: not supported
Child labour	C1	C2	0.051	1.242	0.334	1.553	0.853	H3a: not supported
		C3	0.503	1.484	0.357	1.405	0.132	H3b: not supported
		C4	0.367	0.272	0.395	1.239	0.172	H3c: not supported
		C5	0.056	0.303	0.688	0.997	0.813	H3d: not supported
Long working hours	D1	D2	0.848	0.223	0.149	0.816	0.327	H4a: not supported
		D3	0.363	0.191	0.116	0.999	0.421	H4b: not supported
		D4	0.371	0.750	0.413	1.352	0.185	H4c: not supported
		D5	0.659	0.950	0.099	8.019	0.000	H4d: supported
Unfair competition	E5	E1	0.134	0.212	0.139	0.589	0.327	H5a: not supported
		E2	0.079	3.601	0.168	0.299	0.563	H5b: not supported
		E3*	0.173	3.454	0.176	3.110	0.006	H5c: supported
		E4*	0.437	4.181	0.141	1.947	0.005	H5d: supported
		E6**	0.271	3.121	0.162	1.850	0.063	H5e: supported
		E7	0.116	2.121	0.207	0.672	0.403	H5f: not supported
		E8	0.505	4.825	0.129	7.460	0.000	H5g: supported
Pollution	F5	F1	0.154	4.454	0.269	0.358	0.582	H6a: not supported
		F2	0.265	1.484	0.282	0.116	0.276	H6b: not supported
		F3	0.270	1.636	0.303	0.270	0.350	H6c: not supported
		F4*	0.519	1.727	0.174	2.519	0.008	H6d: supported
		F6	0.09	0.875	0.266	1.608	0.118	H6e: not supported
Notes: *Statistically significant predictor variable in the regression model at α = 5%. **Statistically significant predictor variable in the regression model at α = 10%.

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