Abstract: Value chain model is usually used to analyze a firms business value creation activities so as to propose and implement a more scientific business competition strategy to win in the market. This study however, intends to apply this model to explore the CSR issues faced by each line and staff functional department in a business organization and understand the issues in a systematic way. It concludes that value chain is a more systematic model for analyzing CSR issues of a business organization, any ethical problem along the value chain of a firm is unique itself for a specific function involved but its impact is holistic and may be fatal to the firm as a whole. It implies that the understanding of a firms CSR issues based on value chain model is an important foundation for scientifically managing or preventing the related problem. Only when all the CSR issues in each line and staff function have been managed can a firm handle the real challenge of sustainable development.