supplychain
FredLemke
DepartmentofMarketing,UniversityofStrathclyde–BusinessSchool,Glasgow,UK,and
HenryL.Petersen
ManagementDepartment,UniversityofWisconsin–LaCrosse,LaCrosse,Wisconsin,USA
Abstract
Purpose–Inthesupplychaincontext,professionalsmanagevariousrisksthathavethepotentialtodisruptsupplies.Surprisingly,onekindofriskisoftenoverlooked:reputationalrisk.Itiscriticaltorecognisetheriskpotentialthatimpactsonthereputationoftheorganisation.Furthermore,managersrequireanappropriatetoolsettocontrolit.Thepresentpaperaimstohaveatwinfocus:first,itwilllayoutthebasicpremisesbehindcorporatereputation,reputationalrisk,andcorporatesocialresponsibility(CSR).Second,thepracticalimplicationswillbeaddressedthatleadtoasubstantialteachingcomponent.
Design/methodology/approach–Thepresentpaperisbasedontworesearchstages.Initially,theauthorsadoptedthe“reflectivepractitioner”philosophythataimedatdiscoveringthecommonbeliefsinpracticethatexplainworkingprocessesandmanagementthought.Inparticular,theyexploredthefoundationofCSR,reputationandriskmanagementwithspecialistsindedicatedworkshops(electronics,energy,lifesciences,telecommunicationsanddefenceindustries,locatedatdifferentstagesofthesupplychain).Togainmoreinsight,theauthorssubsequentlyconductedin-depthinterviewsinthesetopicareaswithkeyinformants.Thecombinationallowedthemmethodologicaltriangulation.
Findings–Reputationcanbecreatedandcontrolledassoonasitsnatureisfullyunderstood(ReputationalOwner).Interestingly,itisatransceivingbusinessphenomenonthatcrossesorganizationalboundaries.Spillovereffectscanthusbeobservedatallstagesofthesupplychainbymerebusinessassociation(ReputationalBorrower).Reputationcanrangefrompositivetonegativeextremesandneedstobemanaged.Theresultsoftheauthors’exploratoryworkarepresentedasquotationstoprovidethesubstanceofthecurrentandrelevantsubject.
Researchlimitations/implications–Thepresentworkisexploratoryinnature.Quantitativeresearchmethodsarenowrequiredtovalidateandsubstantiatethefindings.
Practicalimplications–CSRisacontemporaryfoundationtomitigatereputationalriskthroughoutthesupplychain.Theauthorsoutlinethereputationalriskfactorsinthiscontextandthewaysofmanagingthose.
Socialimplications–Inthemarketplace,reputationisareflectionofthesupplychainoffering(products,services),communication(promotion,PR),andaction(behaviourandviewsexpressed).Consumersadoptsupplychainreputationasayardstickwhenmakingpurchasedecisions.Itisthereforecriticaltomanagereputationalriskinthesupplychainandthispaperoutlinesthecauseandeffectrelationshipsthatthistopicentailsinmodernsociety.
Originality/value–Thispaperdiscussestheimportanceofreputationalriskinthesupplychain.ItalsoexplainsthewaysitcanbemitigatedviaCSR.Thisisthemanagementbaselinethataddstremendousvaluefortheorybuildersandpresentandfuturemanagers.HavingtheeducationofMasterstudentsinmind,theauthorsoutlinethreespecificteachingunitsthatbringtheconceptualunderpinningsaliveinaninteractivelearningenvironment.KeywordsReputationalrisk,Corporatesocialresponsibility,Teaching,Supplychainmanagement,Marketoffering,Communication,Socialresponsibility,RiskmanagementPapertypeResearchpaper
Introduction
Mostprofessionalsarefullycognizantoftherisksthathavethepotentialtodisruptsupplies.Minordesignproblems,machinerybreakdownsormajornaturalglobaldisastersrepresentrisksthatsupplychainmanagersmustconsiderwhenmitigatingagainstdisruptions.However,onekindofriskisoftenoverlookedinsupplychainmanagement:reputationalrisk.ArecentexamplecanbeseenwithApple
Thecurrentissueandfulltextarchiveofthisjournalisavailableatwww.emeraldinsight.com/1359-8546.htm
Inc.,theAmericanmultinationalcomputercorporation.InSeptember2011,TheNewYorkTimespostedthatthecompanywasaddingtothepollutionofChinabecauseofitssuppliers(Barboza,2011).InJanuary2012,AppleInc.wasagainintheheadlinesforthehumancostsassociatedtothemanufacturingoftheiPad(DuhiggandBarboza,2012).ThesafetyofApple’ssupplierscameunderscrutiny.Twomonthslater,AppleInc.wasyetagainpointedoutforthepoorlabourpracticesofitssuppliers(DuhiggandGreenhouse,2012).Althoughtheriskmitigatingpracticesofthecompanyhaveminimizeddisruptions,theriskstotheirreputation,asaresultoftheirsupplychain,wereignored.
ReceivedJune2012RevisedOctober2012October2012
AcceptedOctober2012
SupplyChainManagement:AnInternationalJournal18/4(2013)413–428
qEmeraldGroupPublishingLimited[ISSN1359-8546][DOI10.1108/SCM-06-2012-0222]
413
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
Ingeneralterms,reputationalrisksarenotdisruptivetoresources,whichpartlyexplainswhytheassociatedcostsareoftenverydifficulttodetermine.Giventhedelicatenatureofreputation,theymaybebeyondvaluation.
Thepresentpaperhasatwin-focus:First,itwilllayoutthebasicpremisesbehindcorporatereputation,reputationalrisk,andcorporatesocialresponsibility(CSR).After“unpacking”thetheory,theseareaswillbeblendedinasupplychainsetting.Second,havingthetheoreticalfoundationcovered,thepracticalimplicationswillbeaddressedthatleadtoasubstantialteachingcomponentinthemainbodyofthispaper.HavingtheeducationofMasterstudentsinmind,wewilldiscussthreespecificteachingunitsthatbringtheconceptualunderpinningsaliveinaninteractivelearningenvironment.Theconcludingsectionwillhighlighttheimplicationsfortheorybuildersandpractitionersinthesupplychainenvironment.
Figure1Dimensionsofcorporatereputation
Corporatereputation
Havingafirmlistedona“Who’sWho”survey,suchasFortuneMagazine’sannualreportonreputation,willhavepositiveeffectsontheorganisation’sperformance(AngandWight,2009).Apositivecorporatereputationhasbeenfoundtomitigatethenegativeimpactofacrisis(VanhammeandGrobben,2009),beafundamentalsourceofcompetitiveadvantage(DierickxandCool,1989;FlattandKowalczyk,2011),attractcapitalandclosecontracts(Soppeetal.,2011),andinfluencesconsumerbehaviour(Dowling,2001).Thus,corporatereputationisavaluableresource(Iwu-Egwuonwu,2011)andthesignificancetomanageit,indicatestheneedtounderstanditsdimensions.
AreviewoftheliteratureshowsthatdefinitionsofcorporatereputationstemfromtheseminalworkofFombrun(1996)whoidentifiedthreefoundationalelements:1reputationisbasedonperceptions;
2itistheaggregateperceptionofallstakeholders;and3itiscomparative.
Individualsderiveanimpressionofwhoandwhatanorganisationrepresentsbythewayacompanymanagesitsassets(ReeseandKossovsky,2011)aswellasonindividualexperiences(Lloyd,2011).So,eachstakeholderdevelopstheirimpressionsthroughamultitudeofdifferentavenuessuchasthemedia,theirpersonalexperiencewiththeproductorservicebeingoffered,theirinteractionswithemployees,ortheirhistorywithaccountspayableandsoforth.Theconcept,however,considersanaccumulationofuniqueexperiences–orcollectiveimpressions–ofallstakeholders.Itisrelativelystable,canbepositiveornegative,anditisdurable.Theseelementsallowmanagerstoobserveandevaluatethereputationofcorporationsovertime–atleastontheoreticalgrounds–whichmakesitsmanagementthatmuchmoreplausible.
Consideringthatthedimensionsofcorporatereputationcanbeexpansiveandcomplex,Figure1outlinestheexperiencesthatareaderivativeofinteractionsandimpressionscustomershavewiththebrand,theimageofthefirm,theirexperienceswiththeproducts/services,theirperceptionsoftheclassimageoftheproductsandservices,thebrandusersimageportrayed,theimageofthehome
414
countrywherethefirmoriginatesfromandlastlytheculture/personalityoftheorganisation(Worcester,2009).
Eachdimensionisvitaltounderstandascorporatereputationcanbeeasilydamaged(Dowling,2004;Hamilton,1995),particularlywhennotdeveloped,managed,andprotectedinatimelyandappropriatefashion
´azetal.,2009;ReeseandKossovsky,2011).(Casado-Dı
Hence,protectingit,orrathermitigatingtherisksthatthreatenit,isconsiderablymorecomplexthanwhatwouldbeprescribedforbasicriskmanagementpractices.
Riskandreputationalriskmanagement
Whenitcomestomanagingrisks,organisationshavetoassessthreeaspects:theprobabilityoftheeventoccurring,thetotalsocialcostiftheriskweretoberealized,andlastly,whatportionoftheburdentheorganisationwouldhavetoincur.Then,fourgenericdecisionoptionsareavailable:1riskavoidance;
2losspreventionandcontrol;3risktransference;and
4riskretention(BodieandMerton,1998).
Eachoptionhastobecriticallyanalysedinagivensituation.Forinstance,inhindsight,BP’scostfortheGulfoilleakisestimatedtobeUS$192billion(Juhasz,2012).Thisfigurerepresentsthetangiblecoststhattheaccidenthashadonthefirm,butBPseeksafarlowerfigureofUS$15billionforsettlementwithUSauthorities(ChazanandCrooks,2012).WhatanyofthesefiguresfailtocapturearetheintangiblecostsliketheimpactonBP’sreputation.Riskavoidanceentailstheeliminationofallactivitiesthatexposetheorganisationtotherisk.InBP’scase,theymaychoosetoavoidalloffshoredrillingandtherefore,eliminatethepossibilityofexperiencinganotherdeepwellaccident.Losspreventionandcontrolisaboutmanagingtheimpactiftheriskisrealized.Inthiscase,BPmayinvestinpracticesthatrectifyadeepwellblowoutorbetterclean-uptechnology.Transferringtheriskshiftsresponsibilitiestoathirdpartyviainsurancepoliciesandlastly,theorganisationmayretainthe
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
associatedcostsoftheriskandassumeallresponsibilitiesandcostsifsomethingweretohappen.Riskstoacorporation’sreputation,however,arewellbeyondthebasicriskmanagementpracticesdiscussed.First,estimatingtheprobability,socialburdenandcosttotheorganisationisplausiblebutnotstraightforward.Aphysicaleventandthephysicaldamageasaresultofitmaybeestimated,buttheimpactofaneventonthepsycheofconsumersisnotdirectlyassessable.Theeffectonbrandawarenessortheimagegeneratedaroundaproductbecauseofanegativeeventissimplyirregularandlargelyunpredictable.
Thereareanumberofdifferenttypesofreputationalrisksresultingfromtheactivitiesofanorganisationoritspartners.TableIisexclusivelypopulatedwithexamplesofspecificactivities,communicationsorcharacteristicsofproductofferingsthatposearisktothedifferentdimensionsofanorganisation’sreputation.
Companiesshapemarketperceptionsthroughtheiroffering,communication,andactionandTableIindicatesandgivesexamplesoftheproblemzonesonallreputationaldimensions.Forinstance,offeringaproductthatcontainsconflictmineralsmayhaveanimpactontheorganisation’scorporateimage(referto“corporateimage/offering”intersectionofthetable).Arroganceandpoorcustomerservicewillimpactcustomerexperienceandsoforth.Hence,theoptionsformanagingtherisk,forwhichtheprobabilityandcostareunknown,arelimited.Riskretentionisthemostviableoption,althoughwewouldsuggestthatorganisationsopttoavoidtheriskybehaviouraltogetherviacorporatesocialresponsibility.
discretionary(voluntaryactivities).Carroll(1991)takesthisreconceptualisationfurtherandlaterpresentstheresponsibilitiesinapyramidalstructurewitheconomicresponsibilitiesservingasitsbase.Thus,ifthefirmcouldnotsurvivefinancially,nothingelsemattered.
AlthoughsometheoreticalandempiricalworkutilizeCarroll’sdefinitionalconstruct(e.g.Clarkson,1995;JoynerandPayne,2002),thegreatestchallengewithCSRisitslackofclarity(Hillenbrandetal.,2012;Tanejaetal.,2011),resultinginamultitudeofcontradictorydefinitions(Dahlsrud,2008;FreemanandHasnaoui,2011)aswellasdifferentexpectationsandvaluesamongstakeholders(FranzandPetersen,2012;Jamali,2008).Asanormativeconstruct,CSRisshapedbytheactivitiesofthefirm,theenvironmentalsituation,andtheperceptionsofrespectivestakeholders.Inthissense,itisessentiallyuniquetoeachbusiness.Buildingfromspecificworksthathavedefinedandidentifiedstakeholderexpectations(Carroll,1979,1991;EpsteinandRoy,1998,2001;FranzandPetersen,2012;PetersenandVredenburg,2009b),wesettleonthefollowingfourspheres.(1)Governance
Themultitudeofdifferentsocialstructuresandstate-industryrelationsforbusinessworldwiderequirescorporategovernance(FairbrassandZueva-Owens,2012).Itdescribeshoworganisationalresourceswillbedeployed(Dailyetal.,2003)anddepictsthekindofinteractionstheorganisationwillhavewithitsstakeholders(Turnbull,1997).Inessence,itaddressestheeffectivemanagementofresourcesandrelationships,whichisattheheartofcorporatesocialresponsibility.CSRisimportanttoinstitutionalinvestors(PetersenandVredenburg,2009b)andtheytendtoviewthemanagementoffirmswithCSRasbeingcompetent(CoxandWicks,2011),effectiveatmanagingsocialandenvironmentalissues,employinggoodriskmanagementpractices(Kiron,2012;Schwering,2011),andsignallingthattheywereproactiveratherthanreactive(Duetal.,2007).
Withrespecttotheotherstakeholders,consumerswerefoundtoholdamorefavourableattitudetowardsacompanythathadincorporatedCSR(Becker-Olsenetal.,2006),whichpositivelyinfluencedtheirpurchasingbehaviour(Grozaetal.,2011).Consumerswerealsofoundtobemoreloyal(PelozaandShang,2011),andwillingtopaypremiumpricesforproductsfromsociallyresponsiblefirms(Duetal.,2007).Evenemployeeattitudesandtheirperformanceoutcomeswerepositivelyaffectedbyorganisationsthathaddefinedanddevelopedtheirsocialresponsibilities(Hansenetal.,2011).Inthatsamevein,CSRaffectsrecruitmentandincreasestheorganisationalattractivenessoffirmstocandidatesseekingemployment(KimandPark,2011).
Overall,howthecorporationisgoverned,thespecificactivitiesofthefirm,andhowtheyperformthem,matterthemostandwillhavethegreatestimpactonallstakeholders(Bravoetal.,2012;McShaneandCunningham,2012)includingshareholders.
(2)Ethics
Giventhattherearemultipleinterpretationsofwhatsocialresponsibilitymeans(MattenandMoon,2008)CSRhascometorepresentwhatabusinessiswillingtoberesponsible415
Corporatesocialresponsibility
Inatraditionalstakeholder’sview,business’soleresponsibilityshouldbewealthgeneration,resultinginaprofitablereturn-on-investment.Toincluderesponsibilitiesthatextendbeyondwealthcreationareconsideredpilferingofshareholdermoney(Friedman,1970).However,unethicalandirresponsiblecorporatebehaviourgaverisetothedevelopmentofcorporatesocialresponsibility(CSR),whichwasmeanttoguideorganisationsonwhattheirresponsibilitiesshouldbe(Davis,1973).Viewedinthisway,responsibilitiesofbusinessshouldinvolvemorethanjustcreatingwealth.
Today,CSRisaconceptthatenjoysmuchpopularityintheliteratureaswellasamongpractitioners,largelyexplainedbyitsdirectcorrelationwithfinancialperformance(seeInoueandLee,2011;JoandHarjoto,2012;Orlitzkyetal.,2003;PetersenandVredenburg,2009a,b).Givenitshistoricalbackgroundandthecontemporaryinterest,itissurprisingthattheconceptremainsill-defined(FreemanandHasnaoui,2011).Thepredicamentcanbeexplainedbythevarietyofviewsonwhatbusinessesareresponsiblefor(FranzandPetersen,2012)andmayverywellbeimpactedbythediscrepancyof“whatfirmsthink”aboutCSR(cognitive),“whatfirmssay”(linguistic),and“howfirmstendtobehave”(conative),accordingtoBasuandPalazzo(2008).
AnumberofeducationaltextbooksutilizeArchieCarroll’s(1979)seminalworkondefiningCSRinwhichheidentifiesfourareasofresponsibility:economic(profitability),legal(obeythelaw),ethical(obligationtodowhatisright),and
TableIReputationalriskfactorsfromamarketperspectiveCommunication(Promotion,publicrelations)Action(behaviour,viewsexpressed)ExamplesHigh-poweredandhigh-consumptionluxurycarsOpenlydenyingpubliclyavailableclaims,reports,facts,opinionsthatarerelevantforconsumersoftheproductsandusersoftheserviceReputationaldimensionOffering(products,services)CorporateimageOfferingproductsandservicesthatareassociatedwithillegalactivities,damagingtheenvironment,lowquality,andsymbolisingsocialclassdifferencesFredLemkeandHenryL.Petersen
Teachingreputationalriskmanagementinthesupplychain
Product/serviceclassimageOfferingaproductrangethatcannotberecycledorreusedOfferingserviceswithsingle-useproductsand/ormaterialsCollaboratinginanydiscriminatingorillegalactivitiesinthirdworldcountriesNotrectifyingorignoringdamagingenvironmental,social,andqualityissuesandcontinuingwiththesameprocessandproceduresOpenlyemphasisingunsocial,racial,discriminatingopinionsDumpingtoxicmaterialsintheenvironmentEngaginginillegalactivitiesDisplayingtheproductswhileactingirresponsiblyagainsttheenvironmentandsocietyTobaccoadvertisementsonFormulaOnecarsImageofcountryoforiginFashionware(jeans,T-shirts,etc.)fromagrocerydiscounter,sourcedfromspecificsuppliersbasedinIndia416
Emphasisingexclusivelytheproductandservicebenefitsandignoring(and/ornotunderstanding)thecustomerbenefitswhenusingtheproductsandservicesPointingoutthehighworkingstandardsandpro-socialbehaviourwithintheworkforceandactuallynotfulfillingthoseclaimsMakingbrandedgiftstopublicfiguresthatarenegativelyperceivedbythepublicEmphasisingfalseclaimsofproductsandservices(includingenvironmentalorsocialaspects,“greenwash”)leadingtomistrustBrandusersimageHighlightingcustomer’sbenefitsthataredisproportionatelylowtotheburdenoffactoryworkersandtotheharmofthesocietyatlargeformanufacturingthegoodsanddeliveringtheservicePromotingproducts,services,partnerships,suppliers,associationsfromcountriesthatdonotcomplywithhumanrights,etcHighlightingtheprofitsgeneratedbysourcinginlow-costcountriesPlacingusersoftheproductsandservicesinanunsociallightinadvertisements,marketingmaterial,etc.MisrepresentingtheviewsofconsumersonpubliceventsUsingtheproductsofaparticularbrandwhenengaginginillegalactivitiesSupportingbusinessandlabourpracticesinothercountriesthatarenotuptostandardinthehomecountry(includingchildlabouranddiscriminationofwomenintheworkforce)RealfurcoatsinEuropeCorporateculture/personalityOutsourcingmanufacturingprocessestoothercountriesinordertobypasslegalobligationsinthehomecountryBrandimageSourcingmaterialsand/orproductpartsfromcountriesthatdonotcomplywithhumanrightsand/orfightagainstreligiousbeliefsand/ordefeatpoliticalviewsand/orsuppressfreedomofopinionOfferingproductsandservicesthatusedtobefashionable(totraditionalmarketsegments),butarenowassociatedwithunsocial,unsustainable,etc.,aspectsManufacturingparts,finalgoods,anddeliveringservicesbytreatingemployeesunfairlyHavingaproduct-orientedculturethatdoesnotunderstandtheneedsandinterestsofconsumers(norhavingtheappreciationwhythismayberelevant)OfferingarangeofproductsthathavetoxicingredientsOfferingservicesthathamtheenvironmentSupportingacelebritywithbrandedgoodsthatengagedinillegalactivities,thatlaterhasbeenputtotrial,andconvictedVolume18·Number4·2013·413–428
SupplyChainManagement:AnInternationalJournal
ExperienceOfferingproductsandservicesthatdonotworkordonotfulfiltheexpectationsorpromisesPubliclyannouncingsupportinthenameofthebrandforgovernments,co-operations,associations,andinterestgroupsthatfollowphilosophiesandideologiesthatareanti-social,environmentallyharmful,etc.BeingarrogantandpubliclyinsultingcustomersEngaginginactivitiesthatcustomersdisagreewithStatinginapressreleasethatcustomerswouldunquestionablybuyeverythingthecompanyproduces,nomatterhowuselessofsenselessthenewproductsandservicesmaybeTeachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
for(Perrini,2006).Althoughethicscouldrunthroughoutorwithincorporategovernance,itshouldremainasaseparatesphereofresponsibility(Carroll,1979,1991).Organisationsmaybegovernedinmanydifferentwaysbutwhethertheyareethicalornotisametricthatstandsonitsown.Ethicsorrathertheethicalexpectationsofstakeholders,definesthebehaviourthatisexpectedfrombusiness,itsemployees,anditspartners.Itisculturallyembedded,notreliantonstructuresorresourcesandisactionoriented.Itentailscheating,lying,forging,embezzlingorpurposefullycausingharmasopposedtogoingoverandabovethebareminimum.Itmaybeaboutbeingtransparent,honest,forthrightandtrue.Asstatedalready,ethicsisculturallydefinedanditsnaturewillultimatelydependonthecontext.Thus,whatisconsideredethicalbehaviourinonecountry,culturalregion,industrysector,etc.maynotbethesameinanothercountry-culture-industrysetting.
(3)Environment
TheBrundtlandCommission’sreport(Brundtland,1987)appealstobusinesstoassumeenvironmentalresponsibilityandtoprotect,preserve,andrestorethenaturalenvironment.Processesandprocedureshavetobeinharmonywiththeenvironment,sothatresourcesarepreservedforfuturegenerations.Theultimategoalisforbusinesstostrivetowardssustainability.Practicesentailnaturalresourcemagnification,anaturalsystemsapproach,biomimicry,engaginginaserviceandfloweconomy,cradletocradlemanufacturing,reuse,recycleandreduce.Bycontrast,damagingornegativelyimpactingthenaturalenvironmentisunacceptableandbusinessmustinternalizethesecostsaspartoftheirresponsibility.
(4)Social
Fromasocietalperspective,businessdevelopmentandwealthcreationhaveservedadynamicpurposeinthewesternworld.However,socialillscontinuetoplagueallnations,includingdevelopednations.Whetherwearedealingwithpovertyorhumanrightsatrocities,businessshouldcontributetoandparticipateintheeffortstoincreasethequalityoflifeofthecommunitiesthatitserves.Althoughonecouldmakeareasonableargumentthatbusiness’economiccontributionissufficientinandofitself,itiswidelyacceptedthatbusinessmustplayalargerroleinalleviatingsocietalproblems.Communityinvolvementisrequiredtosolvesocialissuessuchaspoverty,hungerorslavetrading.Inmanycases,philanthropyhasbeentheprimaryavenueforbusinesswithdonationsgoingtosocietalinstitutionstomeetsocietalneeds.Today,however,moreorganisationsarestartingtocontributetheirexpertiseandgivetheiremployeesopportunitiestoservethesocietyatlargewithtimeandenergy.
Inconclusion,businesshasaresponsibilitytoalloftheirrespectivestakeholders.Thisincludesinculcatingexceptionalcorporategovernance,sothatstakeholdersaremanagedwellandallresourcesareprotected,nourishedanddeveloped,andnotwasted.Theyshouldmeetandexceedethicalexpectations,protecttheenvironmentandassistsocietyinalleviatingproblemsascommunitypartners.Bydefiningthespheresorresponsibilitiesofbusiness,wecanthenidentify
417
howimplementationandriskmitigationmayoccurinthesupplychain.
Significancetopractitioners
Weconductedresearchinthespiritofthe“reflectivepractitioner”(Scho¨n,1995)anddiscussedCSR,reputation,andriskmanagementwithDirectorsandManagersresponsibleforthesemanagementareasindedicatedworkshops.Theworkshopsaimedatdiscoveringthecommonbeliefsinpracticethatexplainworkingprocessesandmanagementthought(Dewey,1910).Theparticipantswerehighlyinterestedinunderstandingthetheoreticalunderpinningsoftheirmanagementresponsibilitiesthatleaveanimpactbeyondtheboundariesoftheirindividualorganisations.Practitionerscamefromtheelectronics,energy,lifesciences,telecommunicationsanddefenceindustries,werenotdirectcompetitors,andtheorganisationswerelocatedatdifferentstagesofthesupplychain.
Workingwithpractitionersrepresentedacriticalsteptolearn“howmanagersthink”(Dewey,1910).Inordertovalidatetheimportanceandmakeupofthedimensions,wecomplementedtheeventswithsixinterviews;keyinformants(Campbell,1955)werepurposefullyselected.BydiscussingwhatCSRandriskmanagementmeansfortheirindividualorganisationsandhowbothaspectsarerelevantfortheentiresupplychain,wewereabletoadd“criticaldepth”aswellas“criticalbreadth”totheteachingmodulepresentedhere(ThompsonandThompson,2008).
Interviewstookapproximately20minutesonaverage(180min.intotal)andfollowedasemi-structuredguideline,centredonCSRandriskmanagement.Giventheexploratorynatureofthestudy,coupledwiththescarcenumberofempiricalworkinthesupplychaincontext,Carsonetal.(2001)recommendasamplesizeofsixto12forconductinginterviews.Takingourinitialworkwithpractitionersastheconceptualfoundationthatallowsusmethodologicaltriangulation(Yin,2009),wevalidatethesewiththeinterviews.Theresultsofourexploratoryworkarepresentedinthefollowingasquotations.Thesearepurposefullyinsertedtoprovidethesubstanceofthecurrentandrelevantsubject.
Reputationandsocialresponsibilityinthesupplychain
Withinthesupplychaincontext,reputationisaninterestingconcept.Ontheonehand,itismulti-facettedandcorporationsdevelopandexhibituniquereputations,asdiscussedearlier(refertoFigure1).“Its[reputation]ourbiggestrisk...ournameiseverything”(Manager,electronicscompany).Ontheotherhand,certainaspectsofreputationcanbeborrowedbyenteringintomembershipsorjoiningassociations.Inasupplychaincontext,thismeansthatcertainreputationalaspectsbecometransferablefromonepartytoanother(Fioletal.,2001;Kothaetal.,2001)–thesearereputationalspill-overeffectsamongsupplychainmembers.Itisimportanttounderstandwhatreputationaldimensionsaretransferrableacrosscorporationsandtowhatextent.Bythesametoken,knowingwhatdimensionsremainwiththe
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
partythatessentiallyearneditinthepublicview(i.e.thereputationalowner)iskeyforunderstandingreputationholistically.
Whenanalysingthisconceptonabroaderscaleandassessingthechainfromamarket-pointofview,onehastorealisethatnotallsupplychainmembersearnthesamekindandthesamelevelofreputation.“Therearethingsthathappeninthetechsector,butitisnotadirectimpacttous.Weareapartofthesupplychain,soitisnotahugecorrelation.Butweareinvolved”(Director,electronicwholesaledistributor).Withregardstocorporateimage,forinstance,supplychainmembersclosertothemarketareabletoleaveanimpressionontheend-consumerandreceiveareputationinthisregard.However,theentiresupplychaingainspositiveaswellasnegativereputationaleffectsasitisanaccumulationofreputationaladditivesbyitsmembersonvariousdimensions.Figure2illustratestheprinciple.
Notethatthefigureshowsacascadingandlinearsource-make-deliverprocessofthesupplychain,indicatingthatthepoolofsuppliersmaybegreatestatthebeginningofthechain,i.e.rawmaterialstage,butbecomesreducedthecloserFigure2Supplychainreputation:themarket,generators,andborrowers
thesupplierislocatedtothemanufacturer.A“systemsupplier”islistedintier-1,butitcouldalsobea“componentsupplier”withinaparticularchain.Thefigureonlydisplaystwosuppliertiers.Inreality,themanufacturermayworkwithagreaternumber.Thefigurealsoconsidersthedistributorstage.Thestructuremayvaryindifferentindustrysectorsandthemanufacturerwillassumetheresponsibilitiesofthedistributionchannel,ifthedeliverytotheend-consumerisdirect.
Thesupplychainearnsreputationalcapital,basedonthemarketoffering,thecommunicationthatoccurs,andtheactionsofsupplychainmembers.End-consumerswillattributedifferentreputationaldimensionstoindividualsupplychainmembers.“Ifoursupplierscomeuponsomebody’slistasbeinginvolvedinconflictminerals,slavetradeorarmedconflictgoingoninCongo,wheretheminesareinvolved,thenthatlooksbadonus”(Manager,electronicscompany).Thefiguredifferentiatesbetweenreputationalowners(ROs)andreputationalborrowers(RBs)–borrowingtakesplace.Itisinterestingtonotethatmanufacturersareabletoearnreputationonalldimensionsdirectly.
418
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
Recently,therewasastrikeandshutdownoftheFoxconnplantinChinathatwascoveredinthemedia...theseconnectionsbetweenthecontractmanufacturerandthebrandnamemanufacturerleavethebrandnamemanufacturermoreexposedthanbefore.Itiskindofexpectedfromthebrandmanufacturertohaveaprogramtoresponsiblyworkwiththeirsupplychain(Director,consumerelectronicsmanufacturer).
Distributorsmayacquireareputationwithregardstoproduct/serviceclassimage,corporateculture/personality,andtheexperience.Suppliersinisolationmayhardlyearnanyreputationbyend-consumers,becausethesesupplychainmembersdonotinfluencehowtheproductisoffered,delivered,orpackaged.Therefore,supplierstypicallyborrowreputationonalmostalldimensionsfrommanufacturersbasedonaffiliation–the“imageofcountryoforigin”generatedbyrawmaterialsuppliersbeinganexception.Inshort,reputationcrossesorganisationalboundariesandmanufacturers/distributors(orretailers)mayownthemostofit.“Peoplehaveprotestedinfrontofourcompanyhereforsomethingthatwasthreeorfourlayersdownthesupplychainthatweknewnothingabout.Andthathurtourreputationmuchmorethanithurttheirs”(Director,energycompany).Inthesupplychainsetting,thenegativesideofsocialresponsibilityposesarisk,asitcanresultinanegativereputationforallsupplychainmembers.Itisduetoitstransceivingnaturethatreputationalriskscanpresentthemselvesfromallsides.Manufacturersanddistributorscanhavethegreatestexposure.
Botharetypicallyreputationalownersandconsumerswillassociatebothdirectlywithpro-socialbehaviourorwrongdoings.Forinstance,violationsofhumanrightsortheabuseofethnicminoritiescanhavenegativeconsequencesforallmembersofthechainbutbemagnifiedforthedistributor.HomeDepot,theUSretailerforbuildingmaterialandhomeimprovementproducts,forinstance,requirealloftheirmaterialssourcingpoliciestobecertifiedbyenvironmentalinterestgroups(RondinelliandLondon,2003).Inmostinstances,theactivitiesareaffiliatedtoavalueladenissue,whichinturncanhaveconsequencesoncorporatelegitimacy,thelegitimacytooperate,tosurviveandcontinuetoservesociety.
Sincesocialresponsibilityandreputationinteractionsaffectstakeholderperceptions(LiiandLee,2012),CSRisaviablemechanismformanagingthesupplychain’sreputationandmitigatingtherisksassociatedwithit.TableIIillustratestheconnectionbetweenbothconceptsfromamarketperspective.TableIIoutlinesthesociallyresponsiblelandscapeinwhichtheglobalsupplychainoperatestodayandhighlightstheactivitiesthatend-consumersmaynotice.“Overtimehours,thatisabigissueforus.Nothavingpeoplework80hoursaweekonthefactoryfloor.ThatisjustbadPR”(Director,electronicscompany).Alloftheseactivitiesarewoventogetherwiththeirdirectreputationaleffectspersupplychainmembertoproducethefabricofreputation.
Tostartwith,reputationalriskputsthesupplychainunderspotlightingradationsbecausenotallmembersareequallyresponsibleinthepublicview.Thesupplychainparticipantslocatedclosertothemarketcarrythegreatestrisk.Thisexplainswhymanufacturersasreputationalownershavetojustifyunsustainableorantisocialbehaviourofasupplychainpartnerwhoislocatedfurtherup-streaminthechain.Thesamegoesfordistributorsasreputationalowners,ifthischannelisused.Everychainhasenablersandbarrierswhenitcomestoimplementingandfollowinguniversalguidelines(seeWalkerandJones,2012).Inordertocontrolthepotentialrisk,manufacturersmayinstiltheirsetofsocialvaluesintoorontothesupplychain.
419
Thisisaformal(andoftencontractual)process,ratherthanpurelybasedonasocialpartnership,whichcanbeloose(seeWilsonetal.,2010).However,similartosocialpartnerships,theimpressionofthemarketisshapedbytheentirechainasacollectiveratherthanbysinglefirmsthatoperateinisolation.Microsoft,forinstance,requiresfromallsuppliersadiverseworkforce(Taylor,2007).Thesearethedirectivesunderwhichthesupplychainoperatesandsupplierswhoarenotcompliantwillbemanagedatarm’slengthandwilleventuallybereplaced;suppliersthatadoptandsharethesamevalue-setmaybecomeverticallyintegratedsothataclosepartnershipcantranspireovertime.
Whenyougointoanegotiationforabid,youreviewtheRFPs[RequestsforProposals].Everythingisweightedandasthecontractingofficer,youropinionofthepastperformanceofdifferentcompaniesisaweightedvalue.So,eventhoughtheymaynotbethemostefficient,costefficient,companywhenawardingcontracts,theirreputationdefinitelygoesintothesubjectivesideofawardingacontract(ProcurementOfficer,government).
CSRprinciples,andassociatedpractices,inconjunctionwithproducts,services,communication,andactions,aresuitableformitigatinglong-termreputationalrisksinthesupplychainandthisapproachgoesbeyondthosefoundinconventionalriskmanagementpractices.Riskmitigationcanoccurthroughethicalsourcing,forinstance,whichistheprocessofidentifyingandpartneringwithorganisationsthatengageinspecificethicalpractices.StarbucksCorporation,theinternationalcoffeemanufacturer,isagoodexampleofanorganisationthatutilizesthisapproach–asuccessfulstrategywhensuitablealternativesuppliersareathand(Anonymous,2012a).Anotherapproachwouldbetoinvokeacodeofconductforallsupplychainmembers.NikeandAppleadoptthisprincipleanddescribetheacceptableandunacceptablebehaviourofsuppliers.Theythreatentoreplacesuppliersiftheyarenotincompliance(Anonymous,2012b).
Athirdapproach,onewhichwerecommend,wouldbetodevelopcorporatesocialresponsibility(CSR)throughoutthesupplychain(AndersenandSkjoett-Larsen,2009;VaalandandOwusu,2012).
Onthesurface,CSRactivitieshopefullycontributetobuildingastrongpositivereputationinsomeway.Butifyoudigalittlebitdeeper,ourCRreportisanannualaccountingofdata.Andthatdatacanbecomparedfromyeartoyear.Folkscanlookatperformanceonsafetyorongreenhousegasemissionsandwhateverandtheycouldreachtheirownconclusions...itisprettytransparentandso,Ithinkthatit’sawayofcommunicatingrisks.Andbecausewearecommunicatingthoserisks,itforcesusinternallytomaybemitigatethemwithalittlemorefocus(Director,energycompany).
Buildingonthenotionofgreeningasupplychain(e.g.Bjo¨rklundetal.,2012;XieandBreen,2012),impartingCSRintothesupplychainservestoguidememberswithincentivesandtools.Thisisstructurallymoresoundthaninvokingrulesandhavingtomonitormemberperformance.This,ascanbeseenwithAppleInc.’scodeofconduct,doesnotmitigatetheriskentirely.Figure3outlinestherelevantmanagementsteps.
Supplychainsocialresponsibility(SCSR)entailsacoordinatedefforttoassessallsupplychainmembers’
TableIISocialresponsibilityandreputationinthesupplychain(marketperspective)Systemsupplier(1sttier)G:LegallycompliantSupplychainpartnerManufacturerDistributorG:LegallycompliantEn:Reuse,recycle,removeS:Promotinghumanrights;promotingandsupportingthealleviationofrelevantsocietalproblemsReputationaldimensionRawmaterialssupplier(2ndtier)CorporateimageG:LegallycompliantFredLemkeandHenryL.Petersen
Product/serviceclassimageTeachingreputationalriskmanagementinthesupplychain
ImageofcountryoforiginG:Responsibleresourcemanagement;legallycompliant;transparentprocessesandproceduresEn:Reuse,recycle,removeBrandusersimageCorporateculture/personalityS:Promotinghumanrights420
Et:WorkingpracticesS:PromotinghumanrightsBrandimageOffer:ServiceVolume18·Number4·2013·413–428
ExperienceEt:fairtradingpractices;workingpracticesG:LegallycompliantEn:Reuse,recycle,removeS:Promotinghumanrights;promotingandsupportingthealleviationofrelevantsocietalproblemsEn:Reuse,recycle,removeOffer:ProductOffer:ServiceCom:PromotionG:Responsibleresourcemanagement;legallycompliant;transparentprocessesandproceduresEn:Reuse,recycle,removeS:PromotinghumanrightsEt:WorkingpracticesS:PromotinghumanrightsEt:FairtradingpracticesEn:Reuse,recycle,remove;naturalsystemsapproach,cradletocradleS:Promotinghumanrights;promotingandsupportingthealleviationofrelevantsocietalproblemsOffer:ProductOffer:ServiceCom:PublicrelationsS:Promotinghumanrights;promotingandsupportingthealleviationofrelevantsocietalproblemsOffer:ProductOffer:ServiceCom:PromotionandpublicrelationsEt:JudeoChristianperspectiveEn:Reuse,recycle,removeS:PromotingandsupportingthealleviationofrelevantsocietalproblemsOffer:ServiceCom:PromotionandpublicserviceSupplyChainManagement:AnInternationalJournal
Notes:Et¼Ethics(socialresponsibilitydimension);G¼Governance(socialresponsibilitydimension);En¼Environment(socialresponsibilitydimension);S¼Society(socialresponsibilitydimension);Com.¼Communication,consistingofpormotionandpublicrelations;Offer¼Offering,consistingofproductsandservices!Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
commitment,actions,andsurroundingpolicies.Figure3showsthesix-stepmanagementprocess–itisasfollows:1Memberorientation.Theprocessbeginswiththegathering
ofinformationfromsupplychainmembers.Thisentailstheirresponsibility/sustainabilitystatement,ananalysisoftheirpoliciesandprocedures,correspondingperformance,thequalityoftheirmetrics,andtheirconnectionstootherbusinessparties.Thisprocedurewouldmakethesupplychaintransparent(Doorey,2011)andcreatesaplatformwhereknowledge-sharing,learning,developingasenseofsharedmeaningand
´ndez-Espallardovalues,etc.isencouraged(seeHerna
etal.,2010).Otherefforts,suchasconductingalifecycleanalysisontheirproducts,wouldassistinidentifyingopportunitiestomitigatingenvironmentalissues,humanrightsproblemsordisruptionstosupplies,forexample.Scanningtheenvironmentforissues(i.e.regulatorymatters,publicpolicyissues,andsocietaltrends)associatedtothespecificactivitiesanorganisationengagesinwillassistinidentifyingandnavigatingthroughpotentialrisks.Thisalsoincludesregulatorynon-complianceorawards[1]Ensuringthatinterestedandaffectedpartiesaretakenintoconsideration,identifyingrisksearlyonwillassistinmitigatingstakeholderissuesatalaterdate.
2Riskanalysis.Assessmentbeginswiththecharacterisation
oftherisks.Probability,impacts,socialburdenandcosttotheorganisationareconductedhere.Prioritisationshouldoccurtodeterminewhichrisksshouldreceiveimmediateattention.Nevertheless,capturinganddetailingtherisks,basedonaccurateandrelevantinformation,willleadtobetterdecision-making.Forinstance,thelifecycleanalysiswillidentifywhetheranysupplychainmemberusesconflictmaterialsintheproductionprocessorperhapsFigure3SCSRandtheassessmentandmanagementofreputationalrisk
3
4
5
6
detailthecarbonfootprintoftheirproductorservice.Itwillalsoindicatetherisktypeperceivedbyeachstakeholdergroup.
Riskmanagementoptions.Risksshouldbeprioritisedandthencategoricallyassessedforhowtheorganisationshouldmanagethem.Theresultwillpointtomanagementoptionsdeterminedbywhethertheactivityleadingtotheriskcouldbeeliminated,andtherebyeliminatingtherisk;reducingtheimpactoftheriskifitisrealized,andselectingthebestmanagementpracticewhilemanagingthecost.
Decision.Selectionofthebestoptionshouldleadtoreducingoreliminatingtherisk.Management’sapproachmustbecollaborative.Reducingoreliminatingtheriskisinthebestinterestsofallsupplychainmembers,butmoresowiththosethathavemoretolose.Bydevelopingthemanagerialcompetenciesofallpartiesintheanalysis,recognitionanddecision-making,thechainbecomesstrongerandleadstoacompetitiveadvantage.Selectionoftheoptionsarecontingentonensuringthatthereisacollaborativeapproachthatconsiderstheneedsofthedecision,theintensityoftheeffortrequiredandthepartiesthatareaffected.
Implementationandevaluation.Implementationinvolvesthedevelopmentoftheappropriatepolicy,establishinggoalsandmetrics,identifyingrolesandresponsibilities,acquiringtheneededresourcesandstartingtheimplementationprogramme.Collectingthedataandassessingtheperformanceforeffectivenessensuresthatmanagementpracticesaremeasuredandthatwillallowforcontinuousimprovement.Thisistheevaluativepartofthisstep.
Feedback.Afterthedataiscollectedandperformanceisevaluated,theloopmustbeclosed.Performance
421
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
evaluationdataisfedbackinatthefrontoftheloopandtheriskanalysisprocessbeginsonceagain.
IfallmembersofthesupplychaincommittothesameCSRpolicies,theprobabilityofreputationalriskswouldbereduced.Hence,thisisanaddedincentiveforsupplychainmemberstoworktogetherwhereasthosemembersthatareinactiveorobtusewouldbereplacedovertime.
ThewholeideaaroundsupplychainCSRisrelativelynewontheindirectside.So,wehavethedirectside,whichsayswearegoingtobuyplasticmaterialfromyou.Andwearegoingtoputitintoournextproductsandforthatwehaveaspecificprogram,whichhasbeenestablishedsincethatincidenthappenedoverinEurope...allofourdirectsuppliersmustcomplywithit.Notif–theyhaveto!Ontheindirectside,itistouchandgo.Wearegettingbetterwithit.Wearetryingtofocusonourtopsuppliers...weputextrascrutinyonthetopfive(Manager,multinationalelectronicscompany).
Ultimately,onlythesociallyresponsiblesupplychaintrulyfulfilstherequirementsofthemodernconsumerandwillearnpositivereputationonalldimensions.Thisprincipleleavesvitallessonstobelearnedandthus,isrelevantforeducatorsofexistingaswellasfuturemanagers.
Teachinglessonsforeducators
Socialresponsibilityiscriticalinmitigatingreputationalriskinasupplychaincontext.Inthispaper,wefirstoutlinedbothaspectsunderacorporatelensindividually,beforediscussingtheinterplayinasupplychainsetting.WithregardstoteachingthevitallessonstoMasterstudents,werecommendfollowingthesamestructure.Thistopicisideallysuitedinabusiness-to-business(B2B)marketingcoreclassaswellasinasupplychainmanagement(SCM)elective.Giventheappealofthesubjecttostudentsspecialisinginmarketing,management,andstrategy,thistopiccanbeconsideredinvariousMastercurricula.However,basicknowledgeofSCM(Vallet-Bellmuntetal.,2011),suppliermanagementandpartnerships(Wagner,2011),supplierselection(Wathneetal.,2001),aswellas,elementaryprinciplesofconsumerbehaviour,includingconsumerdecision-makingprocess(Solomon,2011)isessential.Contingentonthispre-knowledge,thesuggestedteachingplancoversthreeunits(seeTableIII).
TableIIIliststhemaintopicperunit,alongwiththeteachingactivities,recommendedtimeallocation,andresourcesrequired.Thethreetopicsareasfollows:
1TeachingUnitOne:whatiscorporatereputation(CR)
andwhatrisksareassociatedwithit?
2TeachingUnitTwo:whatiscorporatesocialresponsibility
(CSR)?
3TeachingUnitThree:adoptingsupplychainsocial
responsibility(SCSR)formitigatingsupplychainreputationalrisk(SCRR).TeachingUnitOneisdedicatedtocorporatereputation(CR)andtheinstructorcouldstartwithatheoreticalassessmentoftheconcept,alongwithriskbehaviourandriskmanagement(45min.max.).Crucialaspectstohighlightarethevarietyofrisksthatcompaniesfaceandthestrategiesthattheyemployformitigatingthose.Forsettingupthesubsequentpractical-orientedpart,wewouldsuggesttwooptions–involvingariskmanagerasguestspeaker(OptionA)orsolvingamulti-layeredcasestudy(OptionB).Thedecisionwillbebasedon
422
companyaccess,teachingstyle,andclasstimeallocatedtothistopic.
OptionAmakesuseofaguestspeakerintheriskmanagementareawhichisafruitfulapproachtointroducetheclasstothelatestindustryknowledge(Hoeketal.,2011).GiventhatCRisoneofthekeybusinesschallengestoday,aguestspeakercouldcoverthetopicfromaB2CangleorfromapureB2Bpoint-of-view.ThefocusshouldbeplacedonCRandreputationalrisk,butcouldcoverotherriskaspectsaswell,subjecttotheriskmanagementscopeofthecompany(75min.overall,includingdiscussion).Dependingontheareascoveredbytheguestspeaker,theinstructorcouldconcludethisunitbylinkingthetheoreticalunderpinningsofCRtothepresentedbusinesspracticeand/ortoadditionalup-to-datebusinessexamples,basedontheirownconsultancyprojectsorprintedinthebusinesspress.Ifrequired,thetimecanalsobeusedtorefreshtherelevantinformationonSCMandconsumerbehaviour(CB)–wewouldreserveabout45minutesoverallfortheconcludingpartofthisunit.
OptionBisbasedonsolvingabusinesscaseandexternalsourcesofferexcellentandup-to-datematerialinthisregard(e.g.theEuropeanCaseClearingHouse,HarvardBusinessPublishing,orIveyPublishing).Thecriticalaspectisthatstudentswillhavetoreadandpreparethecasepriortothisteachingunit(Erskineetal.,2003)andthesyndicatesession,i.e.groupwork,willrequireabout90minutestosolvetheproblemathand.Thegoalforthegroupsistopresenttheirsolutionina15minutespresentationinaplenum,whichwillenhancestudents’learningfrom“individualpreparation”,“smallgroupdiscussion”,to“largegroupdiscussion”(Mauffette-Leendersetal.,2001).Again,theinstructorwillneedtoengagetheentireclassinthefinaldiscussion(uptoanadditional30min.)andwillneedtolinkthecasesolutiontothetheoreticalunderpinningscoveredinthefirstpartofthisunit.
TeachingUnitTwoshouldstartwithahistoricaldevelopmentoftheCSRconcept.ForMasterstudents,somepre-readingisrequiredandwewouldrecommendDavis(1973)andCarroll(1979,1991)forthispurpose.TheinstructorhighlightstheclassicalCSRrootsaswellasthebusinessrequirementsandestablishedprocessesatthetime,explainingwhythisconceptbecamerelevantformanagerstodiscussintheearly1900s.Keyissuestohighlightarethesolefocusoncreatingwealth,publicunrestcausedbypotentialabusesbycompanies,andanincreasedinterestinethicalbehaviour.Theinitialteachingpartshouldnotbelongerthanabout30minutes,outliningtheclassicaldimensionssupportedwithexamples,indicatingthatanincreasingnumberofCSRaspectshavebeenaddedovertheyears.CSRisanareathatisallaroundusandstudentswillhavestrongviewsaboutcorporatecommunication,actions,etc.InlinewithMcKeachie’s(2002)approachto“activelearning”,syndicate-basedpeerlearningisidealforfollowinguponthehistoricalpathofCSR,takingtheconceptintothepresent.Thegroupmayexploretheleadingquestion:“Whataretheresponsibilitiesofbusinesstoday?”TwooptionsaresuitableforexploringthetopicandthechoicewilldependontheskillsetofstudentsandhowthistopicisembeddedinthestructureoftheMasterProgrammeoverall.
Teachingreputationalriskmanagementinthesupplychain
SupplyChainManagement:AnInternationalJournal
LemkeandHenryL.Petersen
-erp(selcitraotdna)BnoitpO)(BesnaoictspsOe(nsis)usmbsoaloocrtresetstaefccaicdsadnenycgasrnuiggodnniiisvdkeoaoRrPeorB)snimni(0e50m495841i))Tab)c¼gensidacu(lcBn)inB,otiptnepoicOtn;poec)cikOta,RcnnCaerroapbitlspehtattnulgepnnfesiomrheseerctgkpacaaeeneptpapssu:onamtsrilgaakehcsiu)dcirgt(knyeaardlnAe(poanrpebmuhsoteitguseppnneilehytOdht:uptfktlsrcninoiarnipintlkwoss,isenaisieiecssrivritretyulifclcavevfaasiinitOdrocPnaDi))tA)abcatuperdnac?iypRtioCltsiibintsianaopMhWserlaictoiSnuIIgIniehlbcaenTaTeOpifls,etons,la)ynskrscuaitlojcs(rses,itnsfeyaplad)nnsaalargirofneitsdalaemairr-peteruaporm(gsdeselcsutitmcnirraoofpoorggteninistsadid)iecvvcticcdoroeranpps,yrgs,),)engABpidn)ainsnpivkotsooitroiropatwPBOhpecOn0601-2000-05390121)))ab)cd¼sto)osr(smlanucnonieroitloisapttssiennihsesgeenntroiiapsrcsoilupdpcxnuyosriESGD))ab))cd?RSCsitahWoTw423
Volume18·Number4·2013·413–428
gnidaer(selcitradna)gnidaer-erp(esacssensismuoborotetssaecicdcan)sygssnailgdcniivrkoetorfoPaB0402-9050-46051642))ab))cd¼munelpninoissucsissidnslostyalitpanaenfitcnadenensosaecarcnpye/noitknotiaenstdosnuteestrssaergpetpntaihcpdgiuaudoenrLTaySG)))ab)cdRRCSdnaRSCSeerhTFredTeachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
OptionA.Incasestudentscompletedaresearchmethodsclass,theinstructormaylikestudentstorunindividualfocusgroups.Eachgroupwillneedamainmoderatoraswellasafacilitator(i.e.co-moderator)whoobservestheprocess,takesnotes,andkeepsaneyeontimemanagement.Sixtotenparticipantsexplorethequestioninanexploratoryfashion,guidedbythemoderator.Ifmoderatorsgainedsomeexperiencewithfocusgroupworkinthepast,theycouldletparticipantswritetheirinitialthoughtsandideasonpaperandcouldworktowardsprioritising–orweighting–theidentifiedCSRdimensionsintermsof“importancetosociety”or“importancetoconsumers”.Thelatteraspectswouldturnthefocusgroupintoanominalgroup(Churchilletal.,2010;Lloyd,2011)andmoderatorswillassumemorecontrolintheprocess.
OptionB.Studentswillworkinagroupfromfourtoeightpeersandwillexploretheleadingquestioninnewspapers,generalbusinessmagazines,andspecialisedpractitionerjournals.Studentswillneedtohighlightaspectsinbusinessnews,commentaries,companyportraits,etc.thattheyfindrelevantinaCSRcontext.Ideally,eachgrouphasaprojectmanagerwhosummarisesandorganisestheimpressionsofgroupmembers.
Thegoalofthesyndicatesessionistopresentashort10minutepresentationonthekeyCSRdimensions(labelsanddefinitions)inclass,supportedbyexamples.Thesyndicatesession–OptionAorB–isabout90minutesanddependingonthesizeoftheclass,oneortwogroupswillpresenttheirfindingsintheplenum.WetypicallyselectpresentationgroupsbyrandomandtheinstructorwillneedtoengagetheentireclassforaddingCSRaspectstotheoutcomeofthepresentation(s).Thispartishighlyinteractiveandtheinstructorshouldeventuallycontrasttheclassoutcomeagainstthecurrentliteratureinthefield.
TeachingUnitThreetakesbothconcepts,CR(includingriskmanagement)andCSRintothesupplychaincontext.Thisunitcouldkickoffwithsomestudentpresentationsontoday’schallengingissuesofSCMaswellasofCB.Werecommendstudentstoreadandanalyse3*or4*journalsinthisarea(accordingtotheABSRankingSystem;,e.g.SupplyChainManagement:AnInternationalJournal,IndustrialMarketingManagement,JournalofOperationsManagement)inordertoanswerthefollowingquestionsintheirtenminutespresentations:Whatisthefocusandthemainargumentofthearticle?Whatistheconceptualapproachorresearchdesignofthestudy?Whatistheconceptualmodelorkeyfindingsoftheinvestigation?Whatarethelessonslearned–anysurprises?Whatarethefuturetrendsinthisarea?AQuestion-and-Answersessionshouldfolloweachpresentationandtheinstructorisflexiblewithregardstotimeallocation.Wewouldrecommendabout45minutesmaximumfortheinitialpart,beforetheinstructortakesover.Itisnowcrucialtobuildonthepresentations,tosummarisethekeyschemes,andtoblendthosewiththeaspectsthattheinstructorwouldliketoemphasise.Schemesofthetaughtpartcouldbemanaging,accessing,andselectingsuppliers(Prajogoetal.,2012),organisationalrelationshipsandpartnerships(Kimetal.,2010),networkanalysis(notcoveredinthepresentpaper,Fordetal.(2006)),purchasebehaviourofconsumers(Wesleyetal.,2006),consumerperceptionandcustomerexperience
424
(Lemkeetal.,2011),branding(Fournier,1998),marketingstrategy(Slateretal.,2010),etc.TheseareasofferanaturalfitwithSCSRandSCRRand60minutesshouldbereservedforpositioningoneormoreessentialtopicsinthefocusofthisunit.Theinstructorisflexibleinsettingthefocus,butissuestohighlightare:.
SCRRisariskthatconcernsallsupplychainmembers..
SCRRhasatransceivingnatureandcrossesorganisationalboundariesinapositiveaswellasnegativeform(i.e.fromthereputationalownertoreputationalborrowers)..
Organisationsleaveanimpressioninthemarketplaceviatheoffering,communication,andactionandSCRRisdirectlyassociatedwiththeperceptionofconsumers..
SCSRcanbeusedasamitigatingstrategytocontrolSCRR.However,supplychainmembershavetocarryunequalsharesintermsofreputationaswellassocialresponsibility.
Atthispoint,wewouldrecommendanalysingabusinesscaseinthesupplychaincontext,whichstudentswillhavetoreadbeforehand.Again,excitingandrelevantcasematerialisavailablefromexternalsources.Studentgroupsshouldexplorequestions,suchas:WhatarethefundamentalSCRRdimensionsthatsupplychainmembersgotwrongintheparticularcase(thinkabouttheoffering,communication,action,andotheraspectsthatyoufeelgobeyondit)?WhatSCRSmeasuresshouldhavebeen(orshouldbe)employedandbywhominordertomitigatethereputationalriskofsupplychainmembers?Dependingonthecomplexityoftheactualcase,thesyndicatesessionmayrequire60-90minutestosolveandtopreparea15minutespresentation.TablesIandIIcanbeadoptedasevaluationandanalysisinstrumentsinblankform.Theinstructorhastoinvolveallstudentsintothefinaldebate(about30min.)inordertopopulatethetableswithasmuchinformationaspossibleandtohighlighttheappropriatecourseofactionforthefocalcompanyofthecase.StudentscouldreadthepapersbySvenssonandWagner(2012)andLeeandKim(2009)afterclassasabasistoself-reflectonthesocialresponsibilityandreputationalaspectsinordertoconsolidatethelearningoutcomesofthisteachingunit.
Discussionandconclusion
Ourintentionistomakethesubjectmatteraccessibletomodernmanagersinthesupplychaincontextandwethusspecificallyelaboratedontheimplicationforeducators.Theconcludingpartoutlinestheimplicationsfortheorydevelopersaswellaspractitioners.
Implicationsfortheorydevelopers
Thispaperanalysedreputation,therisksassociatedwithit,andsocialresponsibilityasamitigatingriskstrategyonconceptualgrounds.Blendingbothinasupplychaincontextilluminatesanexcitingresearchareathatmayleadtoinstitutionalisingtheassessmentofsupplychainsocialresponsibilityinaninternationalarena.Againstthisbackground,vitalresearchquestionstoexplorearelinkedtosupplychainmembersandthemarketplace.Forinstance,whatistheimpactofeachdimensionofsupplychainsocialresponsibilityonsupplychainreputationfromthecustomer’s
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
point-of-view?Qualitativeresearch,e.g.intheformofin-depthinterviews,couldbeemployedtoexploreadditionalsocialresponsibilityaspectsandtodeterminetheperceivedinfluenceofeachsupplychainmember.
Ourstudyoriginatedfromworkingwithmanagers,followingthe“Reflectivepractitioner”approach,andwecompletedourinvestigationwithalimitednumberofinterviewswithexpertsinthefield.Thishighlightedthesignificanceofthetopictopracticeandthus,tomanagementeducation.However,ourworkisexploratoryandthesamplesizedoesnotpermitustogeneraliseourfindingsbeyondoursampleofindustryexperts.Althoughinthepresentpaper,wewerelookingforexploratoryinsights,deeplyrootedinpractice,wewouldencouragefutureresearcherstopursuethispathinaquantitativeresearchmode.Alongtheselines,socialresponsibilityaswellasreputationareperceptionalconstructsandthus,largelycontextspecific.Futureresearchcoulddeterminethecontributionofeachsupplychainmemberonsocialresponsibilityindifferentindustrysectorsandindifferentcountries.Workingwithourconceptualisationindifferentsettingswouldelevatethediscussiononagloballevel–whataretheculturaldifferenceswhenassessingsocialresponsibility?Thisisakeyquestion,giventhatsupplychainstypicallyoperateonaglobalscaleandarethuscrossingculturalboundaries.Inthislight,whatarethebarriersforrawmaterialsupplierslocatedindevelopingeconomiesorinformersovietcountriestoenterglobalsupplychainsandwhatistheirperceptionofsocialresponsibility?Whatandhowcantheycontributetosocialresponsibilityanddotheyseeanyvalueindoingso?Qualitativeandexploratoryresearchmayclarifytheopenissuesinherentinaninternationalarena.Manufacturersaretypicallydominatingthesupplychain.Wearguedfromareputationalownerperspectiveandseethatmanufacturersinstiltheirvalue-setintothesupplychain.Tothisend,doesthesupplierselectionprocessreflectsocialresponsibilityindifferentindustrysectorstoday?Furtherresearchhastoinvestigatewherethebalanceliesbetweeninvestinginandimprovingonsocialresponsibilityandthereturn-on-investmentforthesupplychain.
Implicationsforpractitioners
Theconceptualdiscussionhighlightsimplicationsforallsupplychainmembers.First,theymustidentifyandunderstandtheirexposuretoalloftherisksinasupplychainandtheseextendbeyondthoseassociatedtodisruptions.Reputationalrisk,emphasisedhere,isbutonetypeofriskthatmanagersshouldmitigate.Removalormitigationoftheriskcanbeaccomplishedthroughtheimplementationofsupplychainsocialresponsibility(SCSR).Inlinewithaholisticcommitmenttofulfilthemodernresponsibilities,individualmemberswouldneedtoanalysehowtheirsocialresponsibilityprinciplestieintothoseofothersinthesupplychain.Differingparametershavethepotentialtoincreasetheexposureofmemberstoreputationalriskwiththemanufactureranddistributorbearingthegreatestdegreeinthesupplychain.
SCSRimplementationwouldinvolvethedevelopmentofaseriesofprinciplesthatanyorganisationandtheirpartnerscommitto.Identifyingcurrentpractices,goalsandobjectives,managerialtacticsandtheappropriatemetricswillallowfor
425
memberstoidentifyandmitigatetherisks.Thiswouldimpactbothsupplierperformanceandthesupplierselectionprocessinthesupplychain.
AnalysingthecompetitivelandscapewithasocialresponsibilityfocuswouldprovidemanagerswithanappreciativevantagepointtopositiontheirofferingmorefavourablyintheB2Bmarket.Collaboratingwithsuitablepartnerscanonlybedonewhenthesetofsupplierselectionfactorsbecomesupdatedwithsocialresponsibilitymeasures.Thesamecanbesaidwithregardstoselectingthebestmarketchannelanddistributors.Manufacturersneedpartnersthathavetheabilitytocontrolthereputationalrisksincetheyarepositionedatthe“supplychainmarketinterface”.DistributorsneedtounderstandthattheywillhavetoemphasisetheSCSRaspectsthatthecustomerneedstoknowandwillalsohavetoassesstheirindividualreputationalriskandtheirownmitigatingpractices.ThiswillinformthediscussionwithmanufacturersthatarelookingforsuitablepartnersdeliveringtheSCSRperformancecreatedbyallmembers.
Finalremarks
Intheliterature,corporatesocialresponsibilityhasoftenbeendiscussedforits“dogood”qualities.Somewhatmisalignedwiththepopularview,andattheriskofsimplification,weadoptaverynarrowfocusinusingitsolelyforitsriskmitigatingproperties.Inthislight,socialresponsibilityisacuttingoftheGordianknotofthereputationalriskproblem.Thus,ourconceptualisationmayshiftpractitionersintoamorecreativeandframe-brakingmodeofthinkingthantheymightotherwisebeabletoachievewhenmanagingreputationalrisk.SCSRissuchapinpointinglineandwhennotmanagedwell,gettingoffiseasyinthesupplychain.Thislessoncannotbeignored.
Note
1Source44,asmallstart-upenterpriseintheUSAhavedevelopedaplatformtoassistorganizationsintheirmanagementand/ormonitoringofsupplychainmembers.Similartowhatisconductedbyidentitytheftprotection,oneofSource44’sservicesaretoscantheinternetforcomplianceissuesandtheycanalertcustomerstoasupplychainmember’snon-compliance.
References
Andersen,M.andSkjoett-Larsen,T.(2009),“Corporatesocialresponsibilityinglobalsupplychains”,SupplyChainManagement:AnInternationalJournal,Vol.14No.2,pp.75-86.
Ang,S.H.andWight,A.-M.(2009),“Buildingintangibleresources:thestickinessofreputation”,CorporateReputationReview,Vol.12No.1,pp.21-32.
Anonymous(2012a),“Ethicalsourcing”,StarbucksCorporation,availableat:www.starbucks.com/responsibility/learn-more/goals-and-progress/ethical-sourcing(accessed20June2012).
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
Anonymous(2012b),“Whenthejobsinspectorcalls:docampaignsfor‘ethicalsupplychains’helpworkers?”,TheEconomist,31March,p.402.
Barboza,D.(2011),“ApplecitedasaddingtopollutioninChina”,TheNewYorkTimes,2September,p.B6.
Basu,K.andPalazzo,G.(2008),“Corporatesocialresponsibility:aprocessmodelofsensemaking”,AcademyofManagementReview,Vol.33No.1,pp.122-136.
Becker-Olsen,K.L.,Cudmore,B.A.andHill,R.P.(2006),“Theimpactofperceivedcorporatesocialresponsibilityonconsumerbehavior”,JournalofBusinessResearch,Vol.59No.1,pp.46-53.Bjo¨rklund,M.,Martinsen,U.andAbrahamsson,M.(2012),“Performancemeasurementsinthegreeningofsupplychains”,SupplyChainManagement:AnInternationalJournal,Vol.17No.1,pp.29-39.
Bodie,Z.andMerton,R.C.(1998),Finance,PrenticeHall,UpperSaddleRiver,NJ.
Bravo,R.,Matute,J.andPina,J.M.(2012),“Corporatesocialresponsibilityasavehicletorevealthecorporateidentity:astudyfocusedonthewebsitesofSpanishfinancialentities”,JournalofBusinessEthics,Vol.107No.2,pp.129-146.
Brundtland,G.H.(1987),OurCommonFuture,fromOneEarthtoOneWorld,WorldCommissionontheEnvironmentandDevelopment(WCED),Oxford.
Campbell,D.T.(1955),“Theinformantinquantitativeresearch”,TheAmericanJournalofSociology,Vol.60No.4,pp.339-342.
Carroll,A.B.(1979),“Athree-dimensionalconceptualmodelofcorporateperformance”,AcademyofManagementReview,Vol.4No.4,pp.497-505.
Carroll,A.B.(1991),“Thepyramidofcorporatesocialresponsibility:towardthemoralmanagementoforganizationalstakeholders”,BusinessHorizons,Vol.34No.4,pp.39-48.
Carson,D.J.,Gilmore,A.,Perry,C.andGronhaug,K.(2001),QualitativeMarketingResearch,Sage,London.
´az,A.B.,Mas-Ruiz,F.J.andSellers-Rubio,R.Casado-Dı
(2009),“Stockmarketreactionstothird-partycomplaints”,InternationalJournalofBankMarketing,Vol.27No.2,pp.167-183.
Chazan,G.andCrooks,E.(2012),“BPseeks$15bnspillsettlement”,FinancialTimes,8June.
Churchill,G.A.,Brown,T.J.andSuter,T.A.(2010),BasicMarketingResearch,South-Western,Mason,OH.
Clarkson,M.B.E.(1995),“Astakeholderframeworkforanalyzingandevaluatingcorporatesocialperformance”,AcademyofManagementReview,Vol.20No.1,pp.92-117.
Cox,P.andWicks,P.(2011),“Institutionalinterestincorporateresponsibility:portfolioevidenceandethicalexplanation”,JournalofBusinessEthics,Vol.103No.1,pp.143-165.
Dahlsrud,A.(2008),“Howcorporatesocialresponsibilityisdefined:ananalysisof37definitions”,CorporateSocialResponsibilityandEnvironmentalManagement,Vol.15No.1,pp.1-13.
Daily,C.M.,Dalton,D.R.andCannella,A.A.J.(2003),“Corporategovernance:decadesofdialogueanddata”,TheAcademyofManagementReview,Vol.28No.3,pp.371-382.
426
Davis,K.(1973),“Thecaseforandagainstbusinessassumptionofsocialresponsibilities”,AcademyofManagementJournal,Vol.16No.2,pp.312-322.
Dewey,J.(1910),HowWeThink,D.C.Heath&Co.,Boston,MA.
Dierickx,I.andCool,K.(1989),“Assetstockaccumulationandsustainabilityofcompetitiveadvantage”,ManagementScience,Vol.35No.12,pp.1504-1511.
Doorey,D.J.(2011),“Thetransparentsupplychain:fromresistancetoimplementationatNikeandLevi-Strauss”,JournalofBusinessEthics,Vol.103No.4,pp.587-603.Dowling,G.R.(2001),CreatingCorporateReputations:Identity,Image,andPerformance,OxfordUniversityPress,Oxford.
Dowling,G.R.(2004),“Corporatereputations:shouldyoucompeteonyours?”,CaliforniaManagementReview,Vol.46No.3,pp.19-36.
Du,S.,Bhattacharya,C.B.andSen,S.(2007),“Reapingrelationalrewardsfromcorporatesocialresponsibility:theroleofcompetitivepositioning”,InternationalJournalofResearchinMarketing,Vol.24No.3,pp.224-241.
Duhigg,C.andBarboza,D.(2012),“InChina,humancostsarebuiltintoanIpad”,TheNewYorkTimes,25January,p.A1.
Duhigg,C.andGreenhouse,S.(2012),“ElectronicgiantvowingreformsinChinaplants”,TheNewYorkTimes,29March,p.A1.
Epstein,M.J.andRoy,M.-J.(1998),“Managingcorporateenvironmentalperformance:amultinationalperspective”,EuropeanManagementJournal,Vol.16No.3,pp.284-296.Epstein,M.J.andRoy,M.-J.(2001),“Sustainabilityinaction:identifyingandmeasuringthekeyperformancedrivers”,LongRangePlanning,Vol.34No.5,pp.585-604.
Erskine,J.A.,Leenders,M.R.andMauffette-Leenders,L.A.(2003),TeachingwithCases,IveyPublishing,London.
Fairbrass,J.andZueva-Owens,A.(2012),“Conceptualisingcorporatesocialresponsibility:‘relationalgovernance’assessed,augmented,andadapted”,JournalofBusinessEthics,Vol.105No.3,pp.321-335.
Fiol,C.M.,O’connor,E.J.andAguinis,H.(2001),“Allforoneandoneforall?Thedevelopmentandtransferofpoweracrossorganizationallevels”,TheAcademyofManagementReview,Vol.26No.2,pp.224-242.
Flatt,S.J.andKowalczyk,S.J.(2011),“Corporatereputationpersistenceanditsdiminishingreturns”,InternationalJournalofBusinessandSocialScience,Vol.2No.19,pp.1-10.
Fombrun,C.J.(1996),Reputation:RealizingValuefromtheCorporateImage,HarvardBusinessSchoolPress,Boston,MA.
˚kansson,H.andSnehota,I.Ford,D.,Gadde,L.-E.,Ha
(2006),TheBusinessMarketingCourse:ManaginginComplexNetworks,JohnWiley,Chichester.
Fournier,S.(1998),“Consumersandtheirbrands:developingrelationshiptheoryinconsumerresearch”,JournalofConsumerResearch,Vol.24No.4,pp.343-373.Franz,R.S.andPetersen,H.L.(2012),“Roleofbusiness:aportfoliomodelofcorporatesocialresponsibility”,JournalofGlobalResponsibility,Vol.3No.1,pp.83-110.
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
Freeman,I.andHasnaoui,A.(2011),“Themeaningofcorporatesocialresponsibility:thevisionoffournations”,JournalofBusinessEthics,Vol.100No.3,pp.419-443.Friedman,M.(1970),“Thesocialresponsibilityofbusinessistoincreaseitsprofits”,NewYorkTimesMagazine,13September.
Groza,M.,Pronschinske,M.andWalker,M.(2011),“PerceivedorganizationalmotivesandconsumerresponsestoproactiveandreactiveCSR”,JournalofBusinessEthics,Vol.102No.4,pp.639-652.
Hamilton,J.T.(1995),“Pollutionasnews:mediaandstockmarketreactionstothetoxicsreleaseinventorydata”,JournalofEnvironmentalEconomicsandManagement,Vol.28No.1,pp.98-113.
Hansen,S.D.,Dunford,B.B.,Boss,A.D.,Boss,R.W.andAngermeier,I.(2011),“Corporatesocialresponsibilityandthebenefitsofemployeetrust:across-disciplinaryperspective”,JournalofBusinessEthics,Vol.102No.1,pp.29-45.
´ndez-Espallardo,M.,Rodrı´guez-Orejuela,A.andHerna
´nchez-Pe´rez,M.(2010),“Inter-organizationalSa
governance,learningandperformanceinsupplychains”,SupplyChainManagement:AnInternationalJournal,Vol.15No.2,pp.101-114.
Hillenbrand,C.,Money,K.andPavelin,S.(2012),“Stakeholder-definedcorporateresponsibilityforapre-credit-crunchfinancialservicecompany:lessonsforhowgoodreputationsarewonandlost”,JournalofBusinessEthics,Vol.105No.3,pp.337-356.
Hoek,R.V.,Godsell,J.andHarrison,A.(2011),“Embedding‘insightsfromindustry’insupplychainprogrammes:theroleofguestlecturers”,SupplyChainManagement:AnInternationalJournal,Vol.16No.2,pp.142-147.
Inoue,Y.andLee,S.(2011),“Effectsofdifferentdimensionsofcorporatesocialresponsibilityoncorporatefinancialperformanceintourism-relatedindustries”,TourismManagement,Vol.32No.4,pp.790-804.
Iwu-Egwuonwu,R.C.(2011),“Corporatereputation&firmperformance:empiricalliteratureevidence”,InternationalJournalofBusinessandManagement,Vol.6No.4,pp.197-206.
Jamali,D.(2008),“Astakeholderapproachtocorporatesocialresponsibility:afreshperspectiveintotheoryandpractice”,JournalofBusinessEthics,Vol.82No.1,pp.213-231.
Jo,H.andHarjoto,M.(2012),“Thecausaleffectofcorporategovernanceoncorporatesocialresponsibility”,JournalofBusinessEthics,Vol.106No.1,pp.53-72.
Joyner,B.E.andPayne,D.(2002),“Evolutionandimplementation:astudyofvalues,businessethicsandcorporatesocialresponsibility”,JournalofBusinessEthics,Vol.41No.4,pp.297-311.
Juhasz,A.(2012),“BPOwes$192BillionforGulfoildisaster,not$15billionsettlementit’sseeking”,TheHuffingtonPost,11June.
Kim,K.K.,Park,S.-H.,Ryoo,S.Y.andPark,S.K.(2010),“Inter-organizationalcooperationinbuyer-supplierrelationships:bothperspectives”,JournalofBusinessResearch,Vol.63No.8,pp.863-869.
427
Kim,S.-Y.andPark,H.(2011),“Corporatesocialresponsibilityasanorganizationalattractivenessforprospectivepublicrelationspractitioners”,JournalofBusinessEthics,Vol.103No.4,pp.639-653.
Kiron,D.(2012),“Getready:mandatedintegratedreportingisthefutureofcorporatereporting”,MITSloanManagementReview,Vol.53No.3,pp.1-5.
Kotha,S.,Rajgopal,S.andRindova,V.(2001),“Reputationbuildingandperformance:anempiricalanalysisofthetop-50pureinternetfirms”,EuropeanManagementJournal,Vol.19No.6,pp.571-586.
Lee,K.-H.andKim,J.-W.(2009),“CurrentstatusofCSRintherealmofsupplymanagement:thecaseoftheKoreanelectronicsindustry”,SupplyChainManagement:AnInternationalJournal,Vol.14No.2,pp.138-148.
Lemke,F.,Clark,M.andWilson,H.(2011),“Customerexperiencequality:anexplorationinbusinessandconsumercontextsusingrepertorygridtechnique”,JournaloftheAcademyofMarketingScience,Vol.39No.6,pp.846-869.
Lii,Y.-S.andLee,M.(2012),“Doingrightleadstodoingwell:whenthetypeofcsrandreputationinteracttoaffectconsumerevaluationsofthefirm”,JournalofBusinessEthics,Vol.105No.1,pp.69-81.
Lloyd,S.(2011),“Applyingthenominalgrouptechniquetospecifythedomainofaconstruct”,QualitativeMarketResearch:AnInternationalJournal,Vol.14No.1,pp.105-121.
Mckeachie,W.J.(2002),Mckeachie’sTeachingTips:Strategies,Research,andTheoryforCollegeandUniversityTeachers,HoughtonMifflinCompany,NewYork,NY.
McShane,L.andCunningham,P.(2012),“Tothineownselfbetrue?Employees’judgmentsoftheauthenticityoftheirorganization’scorporatesocialresponsibilityprogram”,JournalofBusinessEthics,Vol.108No.1,pp.81-100.
Matten,D.andMoon,J.(2008),“‘Implicit’and‘explicit’CSR:aconceptualframeworkforacomparativeunderstandingofcorporatesocialresponsibility”,AcademyofManagementReview,Vol.33No.2,pp.404-424.
Mauffette-Leenders,L.A.,Erskine,J.A.andLeenders,M.R.(2001),LearningwithCases,IveyPublishing,London.
Orlitzky,M.,Schmidt,F.L.andRynes,S.L.(2003),“Corporatesocialandfinancialperformance:ameta-analysis”,OrganizationStudies,Vol.24No.3,pp.403-441.Peloza,J.andShang,J.(2011),“Howcancorporatesocialresponsibilityactivitiescreatevalueforstakeholders?Asystematicreview”,JournaloftheAcademyofMarketingScience,Vol.39No.1,pp.117-135.
Perrini,F.(2006),“SMEsandCSRtheory:evidenceandimplicationsfromanItalianperspective”,JournalofBusinessEthics,Vol.67No.3,pp.305-316.
Petersen,H.L.andVredenburg,H.(2009a),“Corporategovernance,socialresponsibilityandcapitalmarkets:exploringtheinstitutionalinvestormentalmodel”,CorporateGovernance,Vol.9No.5,pp.610-622.
Petersen,H.L.andVredenburg,H.(2009b),“Moralsoreconomics?Institutionalinvestorpreferencesforcorporatesocialresponsibility”,JournalofBusinessEthics,Vol.90No.1,pp.1-14.
Teachingreputationalriskmanagementinthesupplychain
FredLemkeandHenryL.Petersen
SupplyChainManagement:AnInternationalJournal
Volume18·Number4·2013·413–428
Prajogo,D.,Chowdhury,M.,Yeung,A.C.L.andCheng,T.C.E.(2012),“Therelationshipbetweensuppliermanagementandfirm’soperationalperformance:amulti-dimensionalperspective”,InternationalJournalofProductionEconomics,Vol.136No.1,pp.123-130.
Reese,C.L.andKossovsky,N.(2011),“Intangiblesandthenewreality:risk,reputation,andvaluecreation”,CorporateFinanceReview,Vol.16No.1,pp.20-32.
Rondinelli,D.A.andLondon,T.(2003),“Howcorporationsandenvironmentalgroupscooperate:assessingcross-sectoralliancesandcollaborations”,TheAcademyofManagementExecutive,Vol.17No.1,pp.61-76.Scho¨n,D.A.(1995),TheReflectivePractitioner:HowProfessionalsThinkinAction,AshgatePublishingLimited,Farnham,Surrey.
Schwering,R.E.(2011),“Cognition&riskperceptioninbusinessenvironmentalsustainabilityeducation”,AcademyofEducationalLeadershipJournal,Vol.15No.3,pp.11-35.Slater,S.F.,Hult,G.T.M.andOlson,E.M.(2010),“Factorsinfluencingtherelativeimportanceofmarketingstrategycreativityandmarketingstrategyimplementationeffectiveness”,IndustrialMarketingManagement,Vol.39No.4,pp.551-559.
Solomon,M.R.(2011),ConsumerBehavior:Buying,Having,andBeing,PrenticeHall,UpperSaddleRiver,NJ.
Soppe,A.,Schauten,M.,Soppe,J.andKaymak,U.(2011),“Corporatesocialresponsibilityreputation(CSRR):docompaniescomplywiththeirraisedCSRexpectations?”,CorporateReputationReview,Vol.14No.4,pp.300-323.Svensson,G.andWagner,B.(2012),“Implementationofasustainablebusinesscycle:thecaseofaSwedishdairyproducer”,SupplyChainManagement:AnInternationalJournal,Vol.17No.1,pp.93-97.
Taneja,S.,Taneja,P.andGupta,R.(2011),“Researchesincorporatesocialresponsibility:areviewofshiftingfocus,paradigms,andmethodologies”,JournalofBusinessEthics,Vol.101No.3,pp.343-364.
Taylor,A.(2007),“Microsoftdropssupplieroverdiversitypolicy:monitoringequality”,FinancialTimes,24May,p.5.Thompson,S.andThompson,N.(2008),TheCriticallyReflectivePractitioner,PalgraveMacmillan,Basingstoke.Turnbull,S.(1997),“Corporategovernance:itsscope,concernsandtheories”,CorporateGovernance:AnInternationalReview,Vol.5No.4,pp.180-205.
Vaaland,T.I.andOwusu,R.A.(2012),“Whatisaresponsiblesupplychain?”,InternationalJournalofBusinessandManagement,Vol.7No.4,pp.154-171.
´nez-Ferna´ndez,M.T.andCapo´-Vallet-Bellmunt,T.,Martı
Vicedo,J.(2011),“Supplychainmanagement:amultidisciplinarycontentanalysisofverticalrelationsbetweencompanies,1997-2006”,IndustrialMarketingManagement,Vol.40No.8,pp.1347-1367.
Vanhamme,J.andGrobben,B.(2009),“Toogoodtobetrue!TheeffectivenessofCSRhistoryincounteringnegativepublicity”,JournalofBusinessEthics,Vol.85No.2,pp.273-283.
Wagner,S.M.(2011),“Supplierdevelopmentandtherelationshiplife-cycle”,InternationalJournalofProductionEconomics,Vol.129No.2,pp.277-283.
Walker,H.andJones,N.(2012),“SustainablesupplychainmanagementacrosstheUKprivatesector”,SupplyChainManagement:AnInternationalJournal,Vol.17No.1,pp.15-28.
Wathne,K.H.,Biong,H.andHeide,J.B.(2001),“Choiceofsupplierinembeddedmarkets:relationshipandmarketingprogrameffects”,JournalofMarketing,Vol.65No.2,pp.54-66.
Wesley,S.,Lehew,M.andWoodside,A.G.(2006),“Consumerdecision-makingstylesandmallshoppingbehavior:buildingtheoryusingexploratorydataanalysisandthecomparativemethod”,JournalofBusinessResearch,Vol.59No.5,pp.535-548.
Wilson,E.J.,Bunn,M.D.andSavage,G.T.(2010),“Anatomyofasocialpartnership:astakeholderperspective”,IndustrialMarketingManagement,Vol.39No.1,pp.76-90.
Worcester,R.(2009),“Reflectionsoncorporatereputations”,ManagementDecision,Vol.47No.4,pp.573-589.
Xie,Y.andBreen,L.(2012),“GreeningcommunitypharmaceuticalsupplychaininUK:acrossboundaryapproach”,SupplyChainManagement:AnInternationalJournal,Vol.17No.1,pp.40-53.
Yin,R.K.(2009),CaseStudyResearch:DesignandMethods,Sage,London.
Correspondingauthor
FredLemkecanbecontactedat:fred.lemke@strath.ac.uk
Topurchasereprintsofthisarticlepleasee-mail:reprints@emeraldinsight.comOrvisitourwebsiteforfurtherdetails:www.emeraldinsight.com/reprints
428
因篇幅问题不能全部显示，请点此查看更多更全内容