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Exploring Sustainability Compliance of Sub-Suppliers

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abstract Focal firms face the challenge of ensuring compliance with their corporate sustainability standards (CSS) within their own organization, by their suppliers, and higher tiers of upstream sub-suppliers — all the way up to suppliers of basic raw materials. Supplier management strategies are key to increase suppliers’ sustainability performance. While focal firm’s sustainable supplier management practices towards their first-tier suppliers have been studied relatively extensively, little is known on how firms may approach suppliers beyond the first-tier level, the sub-suppliers. Focal firms’ challenges range from the mere identification of sub-suppliers to little opportunities to enforce sub-suppliers’ practices.
This paper investigates the sub-supplier management practices of two focal firms in the electronic and retail industry by case study research. It proposes that by actively managing sub-suppliers through assessment and collaboration firms can improve sub-suppliers’ compliance with their CSS, that (1) public attention, (2) risk management, and (3) channel power are antecedents to sub-supplier management, and that stakeholder involvement amplifies the effect of sub-supplier management on sub-suppliers’ compliance with their CSS.
This paper is novel in addressing the management of higher tiers of upstream sub-suppliers, proposing a framework for understanding sustainability compliance in sub-supplier management.
   
type conference paper (English)
   
keywords Sustainable Supply Chain Management, Sub-Suppliers, Corporate Sustainability Standards
   
name of conference 72nd Annual Meeting of the Academy of Management (Boston, MA)
date of conference 6-8-2012
title of proceedings The Informal Economy
page(s) Paper 1082
volume / edition 1. Auflage
publisher Academy of Management (Chicago)
review double-blind review
   
profile area SoM - Business Innovation
citation Grimm, J. H., Hofstetter, J. S., & Sarkis, J. (2012). Exploring Sustainability Compliance of Sub-Suppliers. In The Informal Economy, 1. Auflage, pp.Paper 1082. Chicago: Academy of Management.