Tire-building machinery producer Safe-Run Group (Safe-Run) was a second-tier supplier in the automotive industry. Responding to “green supply chain” initiatives in the industry, including by Safe-Run’s major clients, the company started working on a new environmentally friendly meridian machine. The results of a pilot test led by Zhijun Li, vice-president and head of research and development at Safe-Run, proved very promising both in terms of energy consumption and productivity, yet senior management remained skeptical. In a meeting with Li, senior executives expressed concerns about the higher production costs and the reaction of Safe-Run’s main customers. Li needed to build a better business case for the new machine.
Tire manufacturer Linglong initiated its green supply chain management (GSCM) program in 2018. By extending the ongoing green practices from within the organization to external supply chain partners, Linglong developed a green concept based on the entire product life cycle, which involved materials suppliers, equipment suppliers, distributors, and other stakeholders. After a one-year trial, the company saw an opportunity to mitigate the environmental risks in the supply chain and to enhance both environmental and economic performance at the supply chain level. However, the company also encountered challenges, such as the supply chain partners’ limited understanding of the value of GSCM and a lack of senior leadership support among suppliers. Faced with these challenges, Linglong had to decide whether to extend its GSCM program and how to improve it.
Chinese companies are not the standard setters when it comes to corporate social responsibility. But contrary to many published reports, they are implementing and following best practices, some of which Western companies have been using for some time. This article offers an up-to-date assessment of the successes and frustrations of corporate social responsibility in China. In doing so, it examines the country’s governmental and industrial forces, as well as pressures from communities, media, civil society, and unions.