Advertisement

An Analysis of Corporate Social Responsibility and Role of Intermediaries for Value-Added Services

  • Jeffrey Darville
  • Alessio FacciaEmail author
Conference paper
  • 11 Downloads
Part of the Advances in Science, Technology & Innovation book series (ASTI)

Abstract

Consumers represent the largest market segment by total population and frequency of transactions across the global economy. However, many potential customers of products are unable to purchase goods due to their low income. The root causes of poverty are explored in terms of consumer products, the role of intermediaries, and the social responsibility of corporations. Consumer purchases often travel through intermediaries that extract profits from the value chain because of market structures and industry customs. This study reveals the hidden costs to consumers in the prices of common fungible consumer products, namely disposable batteries. This study examines the members of the value-added chain, and their contributions relative to the producers of the product. It will propose a model for transactional reallocation with respect to the marginal utility of intermediaries and the final price to end users. It is further proposed that the creation of a national market to reduce intermediary costs will more readily link final users with producers. Based on this analysis it was determined that opportunities exist to create greater profit margins for manufacturers who could then increase capital expenditures, reinvest in research and development while providing greater wages to unskilled labor.

Keywords

Corporate social responsibility Value-added Distribution chain Intermediary Market allocation Supply chain Stakeholder theory Consumer pricing 

References

  1. Afzal Hossain, M. (2017). Value added statement: A part of social responsibility reporting. Journal of Finance and Accounting, 5(2), 74.  https://doi.org/10.11648/j.jfa.20170502.11.CrossRefGoogle Scholar
  2. Akhtar, S., & Mekki, Y. (2017). Environmental prosperity and sustainable development practices. Research Journal of Chemistry and Environment., 21, 65–70.Google Scholar
  3. Burgess, K., & Singh, P. (2006). Supply chain management: A structured literature review and implications for future research. International Journal of Operations & Production Management, 26(7), 703–729.Google Scholar
  4. Burgess, K., Singh, P. J., & Koroglu R. (2006). Supply chain management: A structured literature review and implications for future research. International Journal of Operations & Production Management, 26, 703.Google Scholar
  5. Camilleri, M. (2017). Responsible supply chain management and stakeholder engagement for corporate reputation (pp. 79–95).  https://doi.org/10.1007/978-3-319-46849-5_5.CrossRefGoogle Scholar
  6. Catturi, G. (1994). La teoria dei flussi e degli stocks ed il “sistema dei valori” d’impresa (The theory of flows and stocks and the corporate “system of value”). Cedam, Padova.Google Scholar
  7. Charkham, J. (2011). Keeping better company: Corporate governance ten years on. http://doi.org/10.1093/acprof:oso/9780199243198.001.0001.
  8. Coviello, N. E., & Brodie, R. J. (2001). Contemporary marketing practices of consumer and business-to-business firms: How different are they? The Journal of Business and Industrial Marketing, 16, 382–400.CrossRefGoogle Scholar
  9. Cox, B. (1979). Value added an appreciation for the accountants concerned with industry. Institute of Cost and Management Accountants, 1978, quoted in Morely, M. F. (1976). The value added statement in Britain. The Accounting Review, LIV(3), 620, from Cox, added value and corporate reporting. Management Accounting, 142–146.Google Scholar
  10. Ellram, L. M. (1991). Supply-chain management: The industrial organisation perspective. International Journal of Physical Distribution & Logistics Management, 21(1), 13–22.CrossRefGoogle Scholar
  11. Evraert, S., & Riahi-Belkaoui, A. (1998). Usefulness of value added reporting: A review and synthesis of the literature. Managerial Finance, 24(11), 1–15.CrossRefGoogle Scholar
  12. Fagerstrøm, A., Stratton, J. P., & Foxall, G. R. (2015). The impact of corporate social responsibility activities on the consumer purchasing situation. Journal of Organizational Behavior Management, 35(3/4), 184–205.  https://doi.org/10.1080/01608061.2015.1093053.CrossRefGoogle Scholar
  13. Fort, T., Pierce, J. R., & Schott, P. K. (2017). New perspectives on the decline of U.S. manufacturing employment. In Houseman, S. N. (2018). Understanding the decline of U.S. manufacturing employment. W.E. Upjohn Institute.  https://doi.org/10.17848/wp18-287.
  14. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Analysis, 38(01).Google Scholar
  15. Gangopadhyay, S., & Wadhwa, W. (2004). Changing pattern of household consumption expenditure. Society for economic research & financial analysis. New Delhi: The Planning Commission, Government of India.Google Scholar
  16. Glickman, L. B. (2009). Buying power: A history of consumer activism in America. Chicago: University of Chicago Press.CrossRefGoogle Scholar
  17. Haller, A., & Van Staden, C. (2014). The value added statement—An appropriate instrument for integrated reporting. Accounting, Auditing & Accountability Journal, 27(7), 1190–1216.  https://doi.org/10.1108/aaaj-04-2013-1307.CrossRefGoogle Scholar
  18. Haller, A., Van Staden, C., & Landis, C. (2016). Value added as part of sustainability reporting: Reporting on distributional fairness or obfuscation? Journal of Business Ethics.  https://doi.org/10.1007/s10551-016-3338-9.CrossRefGoogle Scholar
  19. Hannan, M. A., Lipu, M. S. H., Hussain, A., & Mohamed, A. (2017). A review of lithium-ion battery state of charge estimation and management system in electric vehicle applications: Challenges and recommendations. Renewable and Sustainable Energy Reviews, 78, 834–854.CrossRefGoogle Scholar
  20. Ianniello, G. (2010). The voluntary disclosure of the value added statement in annual reports of Italian listed companies. Agricultural Economics Czech, 56(8), 368–378.CrossRefGoogle Scholar
  21. Jain, J., Dangayach, G. S., Agarwal, G., & Banerjee, S. (2010). Supply chain management: Literature review and some issues. Journal of Studies on Manufacturing, 1(1).Google Scholar
  22. Lee, N. R., & Kotler, P. (2011). Social marketing: Influencing behaviors for good. SAGE Publications.Google Scholar
  23. Maddison, A. (2005). Measuring and interpreting world economic performance 1500–2001. Review of Income and Wealth, 51, 1–35.CrossRefGoogle Scholar
  24. Mandal N., & Goswami S. (2008). Value added statement (VAS)—A critical analysis. Great Lakes Herald, 2(2).Google Scholar
  25. Markley, M. J., & Davis, L. (2007). Exploring future competitive advantage through sustainable supply chains. International Journal of Physical Distribution and Logistics Management, 37(9), 763–774.CrossRefGoogle Scholar
  26. Matten, D., & Moon, J. (2008). “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review, 33(2), 404–424.CrossRefGoogle Scholar
  27. Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. The Academy of Management Review, 22(4), 853–886.Google Scholar
  28. Mondol, N., & Goswami, S. (2008). Value added statement (VAS)—A critical analysis-a case study of Bharat Heavy Electricals Limited. Great Lakes Herald, 2(2), 98.Google Scholar
  29. Moreley, M. F. (1979). Value added: The fashionable choice for annual reports and incentive scheme. The Accountant’s Magazine, June 1979, 235.Google Scholar
  30. Morley, M. F. (1978). The value added statement: A British innovation. The Chartered Accountant Magazine, 12(2), 31–34.Google Scholar
  31. Nielsen, S., & Nielsen, E. H. (2008). System dynamics modelling for a balanced scorecard: Computing the influence of skills, customers, and work in process on the return on capital employed. Management Research News, 31(3), 169–188.CrossRefGoogle Scholar
  32. Rao, P. M. (2000). Value added reporting: In theory, practice and research (pp. 49–50). New Delhi: Deep and Deep Publications Pvt. Ltd.Google Scholar
  33. Rathi, R. A. (2017). Value added statement: A new dimension to accounting communication. International Journal of Applied Research, 3(7), 1193–1197.Google Scholar
  34. Reichmann, T., & Lange, C. (1981). The value added statement as part of corporate social reporting. Management International Review, 21(4), 17–22 (Published by Springer).Google Scholar
  35. Riahi-Belkaoui, A. (1992). Value added reporting: Lessons for the United States. Greenwood Publishing Group.Google Scholar
  36. Riahi-Belkaoui, A. (1996). Performance results in value added reporting. Greenwood Publishing Group.Google Scholar
  37. Riahi-Belkaoui, A. (1999). Productivity, profitability, and firm value. Journal of International Financial Management & Accounting, 10(3), 188–201.  https://doi.org/10.1111/1467-646X.00050.CrossRefGoogle Scholar
  38. Seretny, M., & Seretny, A. (2012). Sustainable marketing—A new era in the responsible marketing development. Foundations of Management, 4.  https://doi.org/10.2478/fman-2013-0011.CrossRefGoogle Scholar
  39. The Future of Company Report. (1977). Green paper published by HMSO (p. 15) London: A Consultative Document of British Government.Google Scholar
  40. Tran, H. P., Schaubroeck, T., Swart, P., Six, L., Coonen, P., & Dewulf, J. (2018). Recycling portable alkaline/ZnC batteries for a circular economy: An assessment of natural resource consumption from a life cycle and criticality perspective. Resources, Conservation and Recycling, 135, 265–278.CrossRefGoogle Scholar
  41. Van Staden, C. (1999). The usefulness of the value added statement: A review of the literature. Meditari Accountancy Research, 61998, 337–351.Google Scholar
  42. Van Staden, C. J. (2000). Revisiting the value added statement: To published or not to publish. In Proceedings of the 12th Asian Pacific Conference on International Accounting Issues (pp. 20–23), October 21–24.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.American University in the Emirates, Dubai International Academic CityDubaiUAE

Personalised recommendations