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Supply chain disclosure and ethical sourcing

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  • Chen, Jen-Yi
  • Slotnick, Susan A.

Abstract

This paper explores the question of whether ethical sourcing and disclosure of supply chain sources is linked to competitiveness. We model competition between two firms, both of which produce the same consumer good. One sources ethically and the second does not, and market share is affected by the nature of their sources and whether or not they disclose them. Costs include procurement and disclosure. We investigate the tradeoffs involved and the incentives for a firm to disclose the nature of its sourcing in response to its cost and market structure, as well as the characteristics of its competitors. We find that a firm׳s decision to disclose its sources should depend not only on its cost of disclosure, but also on the actions of its competitor and the effect that its actions will have on its own market share.

Suggested Citation

  • Chen, Jen-Yi & Slotnick, Susan A., 2015. "Supply chain disclosure and ethical sourcing," International Journal of Production Economics, Elsevier, vol. 161(C), pages 17-30.
    • Handle: RePEc:eee:proeco:v:161:y:2015:i:c:p:17-30
    DOI: 10.1016/j.ijpe.2014.11.001
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    References listed on IDEAS

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    Cited by:

    1. Panda, S. & Modak, N.M. & Basu, M. & Goyal, S.K., 2015. "Channel coordination and profit distribution in a social responsible three-layer supply chain," International Journal of Production Economics, Elsevier, vol. 168(C), pages 224-233.
    2. Shengnan Sun & Xinping Wang & Yan Zhang, 2017. "Sustainable Traceability in the Food Supply Chain: The Impact of Consumer Willingness to Pay," Sustainability, MDPI, vol. 9(6), pages 1-19, June.
    3. Albert Y. Ha & Weixin Shang & Yunjie Wang, 2023. "Supplier Audit Information Sharing and Responsible Sourcing," Management Science, INFORMS, vol. 69(1), pages 308-324, January.
    4. Shiyang Li & Mengli Li & Nan Zhou, 2020. "Pricing and coordination in a dual-channel supply chain with a socially responsible manufacturer," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-15, July.
    5. Bian, Junsong & Zhao, Xuan, 2020. "Competitive environmental sourcing strategies in supply chains," International Journal of Production Economics, Elsevier, vol. 230(C).
    6. Slotnick, Susan A. & Sobel, Matthew J., 2022. "Collaboration with a supplier to induce fair labor practices," European Journal of Operational Research, Elsevier, vol. 302(1), pages 244-258.
    7. Beltagui, Ahmad & Kunz, Nathan & Gold, Stefan, 2020. "The role of 3D printing and open design on adoption of socially sustainable supply chain innovation," International Journal of Production Economics, Elsevier, vol. 221(C).
    8. Orji, Ifeyinwa Juliet & Liu, Shaoxuan, 2020. "A dynamic perspective on the key drivers of innovation-led lean approaches to achieve sustainability in manufacturing supply chain," International Journal of Production Economics, Elsevier, vol. 219(C), pages 480-496.
    9. Islam, Muhammad Azizul & van Staden, Chris J., 2018. "Social movement NGOs and the comprehensiveness of conflict mineral disclosures: evidence from global companies," Accounting, Organizations and Society, Elsevier, vol. 65(C), pages 1-19.
    10. Mani, Venkatesh & Jabbour, Charbel Jose Chiappetta & Mani, Kavitha T.N., 2020. "Supply chain social sustainability in small and medium manufacturing enterprises and firms’ performance: Empirical evidence from an emerging Asian economy," International Journal of Production Economics, Elsevier, vol. 227(C).
    11. Shafiq, Asad & Ahmed, Muhammad Usman & Mahmoodi, Farzad, 2020. "Impact of supply chain analytics and customer pressure for ethical conduct on socially responsible practices and performance: An exploratory study," International Journal of Production Economics, Elsevier, vol. 225(C).
    12. Bruce Pinnington & Amy Benstead & Joanne Meehan, 2023. "Transparency in Supply Chains (TISC): Assessing and Improving the Quality of Modern Slavery Statements," Journal of Business Ethics, Springer, vol. 182(3), pages 619-636, January.
    13. Ruixue Guo & Hau L. Lee & Robert Swinney, 2016. "Responsible Sourcing in Supply Chains," Management Science, INFORMS, vol. 62(9), pages 2722-2744, September.
    14. Bian, Junsong & Liao, Yi & Wang, Yao-Yu & Tao, Feng, 2021. "Analysis of firm CSR strategies," European Journal of Operational Research, Elsevier, vol. 290(3), pages 914-926.
    15. Lyndie Bayne & Juliana Ng & Marvin Wee, 2022. "Supply chain disclosure: stakeholder preferences versus current practice in Australia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3875-3911, September.
    16. Neda Dabaghian & Reza Tavakkoli-Moghaddam & Ata Allah Taleizadeh & Mohammad Sadegh Moshtagh, 2022. "Channel coordination and profit distribution in a three-echelon supply chain considering social responsibility and product returns," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3165-3197, March.
    17. Weihua Liu & Wanying Wei & Xiaoyu Yan & Di Wang, 2019. "Supply Contract Design with Asymmetric Corporate Social Responsibility Cost Information in Service Supply Chain," Sustainability, MDPI, vol. 11(5), pages 1-24, March.
    18. Venkatesh, V.G. & Zhang, Abraham & Deakins, Eric & Mani, Venkatesh, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," International Journal of Production Economics, Elsevier, vol. 234(C).

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