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Suppliers as Stewards? Managing Social Standards in First- and Second-Tier Suppliers

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  • Michael S. Aßländer

    (Technical University Dresden)

  • Julia Roloff

    (ESC Rennes)

  • Dilek Zamantili Nayır

    (Marmara University)

Abstract

Buyer–supplier relationships are often framed as principal–agent relationships, based on contractual arrangements that temporarily align the goals of both parties. The underlying notion is that the relationship between buyers and suppliers is adversarial in nature and that the supplier, acting in the role of the agent, will take advantage of the principal if not sufficiently controlled. We propose that there is empirically also another type of partnership which reflects the propositions of stewardship theory. According to this theory, suppliers are motivated to work autonomously towards contractually agreed objectives. We analyse how the agency and stewardship theories differ regarding their descriptions of autonomy, motivation, identification, authority, stakeholder orientation and short- versus long-term collaboration. We analyse the case of a first-tier supplier and four second-tier suppliers situated in Turkey in the area of Istanbul which collaborate with the aim of improving their social and environmental performance. The results show that the relationship between the partners in this case has become more collaborative over time and can now be described in terms of stewardship theory rather than in terms of agency theory. We conclude that the distinction between agency and stewardship relationships is empirically meaningful in the context of supplier–buyer relationships and adds a new aspect to our understanding of how to achieve more sustainable supply chains.

Suggested Citation

  • Michael S. Aßländer & Julia Roloff & Dilek Zamantili Nayır, 2016. "Suppliers as Stewards? Managing Social Standards in First- and Second-Tier Suppliers," Journal of Business Ethics, Springer, vol. 139(4), pages 661-683, December.
    • Handle: RePEc:kap:jbuset:v:139:y:2016:i:4:d:10.1007_s10551-016-3148-0
    DOI: 10.1007/s10551-016-3148-0
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    References listed on IDEAS

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    3. Ran Tao & Jian Wu & Hong Zhao, 2023. "Do Corporate Customers Prefer Socially Responsible Suppliers? An Instrumental Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 185(3), pages 689-712, July.
    4. Davis-Sramek, Beth & Robinson, Jessica L. & Darby, Jessica L. & Thomas, Rodney W., 2020. "Exploring the differential roles of environmental and social sustainability in carrier selection decisions," International Journal of Production Economics, Elsevier, vol. 227(C).
    5. Christopher Chan & Subramaniam Ananthram, 2020. "A neo-institutional perspective on ethical decision-making," Post-Print hal-03107344, HAL.
    6. Jing Zhou & Shibin Sheng & Chuang Zhang, 2022. "Deterring Unethical Behaviors in Marketing Channels: The Role of Distributor Whistleblowing," Journal of Business Ethics, Springer, vol. 181(1), pages 97-115, November.
    7. Chen Qian & Xinran Gu & Lei Wang, 2022. "Costs of Employee Stewardship Behaviors for Employees in the Work-to-Family Penetration Context during the COVID-19 Pandemic," IJERPH, MDPI, vol. 19(10), pages 1-17, May.
    8. Sara Rodriguez-Gomez & Maria Lourdes Arco-Castro & Maria Victoria Lopez-Perez & Lazaro Rodríguez-Ariza, 2020. "Where Does CSR Come from and Where Does It Go? A Review of the State of the Art," Administrative Sciences, MDPI, vol. 10(3), pages 1-19, August.
    9. Fontana, Enrico & Öberg, Christina & Poblete, León, 2021. "Nominated procurement and the indirect control of nominated sub-suppliers: Evidence from the Sri Lankan apparel supply chain," Journal of Business Research, Elsevier, vol. 127(C), pages 179-192.
    10. Enrico Fontana & Niklas Egels-Zandén, 2019. "Non Sibi, Sed Omnibus: Influence of Supplier Collective Behaviour on Corporate Social Responsibility in the Bangladeshi Apparel Supply Chain," Journal of Business Ethics, Springer, vol. 159(4), pages 1047-1064, November.
    11. Fenna Blomsma & Thomas Bauwens & Ilka Weissbrod & Julian Kirchherr, 2023. "The ‘need for speed’: Towards circular disruption—What it is, how to make it happen and how to know it's happening," Business Strategy and the Environment, Wiley Blackwell, vol. 32(3), pages 1010-1031, March.

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