Development of a social auditing management system to measure responsibility in a supply chain : Case Company: Pramia

Abstract

The purpose of this study was to develop an auditing system for a case company, Pramia, which would measure and manage responsibility throughout their supply chain. This was done by researching theoretical methodology in social auditing and key concepts related to the study and also a practical method used to gain insight on developing the management system. This thesis addresses the issues and needs of Pramia, provides a layout of actions for the revised management system, as well as a plan for implementation.
 
 This study combines literature from concepts such as supply chain management, corporate social responsibility, social auditing and alcohol policy with practical execution of social auditing in order to obtain relevant knowledge in practical implications of social auditing with a view of developing a management system for Pramia Oy.
 
 The empirical model features nine principle indicators which Pramia used in determining the ethicality of their suppliers. Executing the empirical model of social auditing, gaps were found in Pramia’s social auditing, lacking key indicators in the economic dimension of corporate social responsibility. Key development issues also emerged when the study indicated that the principles were not applicable to all of Pramia’s suppliers.
 
 By distinguishing correlations between the theoretical literature, empirical data and findings, a development plan was presented for Pramia. The company should utilize tools and resources, such as the triple-bottom-line concept and introduce all three dimensions of responsibility into their key principles, become a member of organizations which aid in ethical auditing and reporting, build a company report and implement a third-party social auditing system, and create sector-specific auditing principles which apply to each sector for their suppliers.
 
 These actions should be implemented and carried out at the same rate with Pramia’s internationalization and growth process.