IAOP Survey Finds Corporate Social Responsibility Increasingly Important in Outsourcing Contracts
POUGHKEEPSIE, N.Y., March 10 – Corporate social responsibility (CSR) will increasingly become a more important factor to companies in awarding outsourcing contracts, show results from a survey conducted by the International Association of Outsourcing Professionals(R) < /span>(IAOP(R)).
The newly released electronic survey of IAOP’s global membership found that 71 percent of respondents view CSR as becoming more or much more important in deciding future outsourcing contracts by companies in all industries around the world.
On a five point scale, both outsourcing providers and buyers rated the importance of CSR at 3.9. In addition, 70 percent of outsourcing customers and providers said they plan to increase their CSR activity in the next three years, with small- and medium-size providers having the strongest intentions to increase CSR.
Other key findings of the IAOP 2009 CSR Survey include:
Ø Many leading service providers have a CSR emphasis encompassing activities in human resources, community involvement and the environment.
Ø Significant percentages of outsourcing buyers may consider the CSR capability of a service provider when making an outsourcing decision.
Ø Outsourcing buyers consider employee practices as the more important CSR criteria, putting labor, fair operating practices and human rights higher than consumer, environmental and community involvement.
Ø India was ranked as the most popular developing region of the world that companies outsource to as a social responsibility, followed by Southeast Asia.
“The growing importance of CSR cannot be ignored,” said IAOP Chairman Michael Corbett, who heads the CSR subcommittee of IAOP’s Advocacy & Outreach Committee. “If companies want to win in outsourcing deals, they have to be focusing on CSR practices that are good for people, the community and the environment.”
The survey results also suggest that the outsourcing industry is already a leader in CSR. An earlier study by Bill Hefley, Ph.D., found that leading outsourcing service providers named to IAOP’s prestigious Global Outsourcing 100(R) list have a significantly stronger emphasis on CSR than other applicants.
The full survey results were released at the association’s annual conference, The 2010 Outsourcing World Summit(R), where socially responsible outsourcing was a well-received educational track among the 550-plus professionals attending.
The research was led by Bill Hefley, CDP, Certified Outsourcing Professional(R) (COP), clinical associate professor, University of Pittsburgh and Director, ITSqc LLC; and Ron Babin, associate director and assistant professor, Ted Rogers School of IT Management, Ryerson University.
A research white paper with the findings and case studies is availa ble at IAOP’s online knowledge center, Firmbuilder.com.
The International Association of Outsourcing Professionals (IAOP) is the global, standard-setting organization and advocate for the outsourcing profession. With more than 100,000 members and affiliates worldwide, IAOP helps companies increase their outsourcing success rate, improve their outsourcing ROI, and expand the opportunities for outsourcing across their businesses. www.outsourcingprofessional.org.