Corporate social responsibility and inventory policy
In this article, we study the impact of implementing corporate social responsible (CSR) practices on firms’ inventory policy. We propose that there is an inverted U-shaped relationship between firms’ CSR and their inventory levels. Two elements explain such a proposal. First, stakeholders have different interests regarding the outcome of the inventory system. Specifically, we hypothesize that customers put pressure on firms to increase inventories; employees have conflicting views regarding inventories, and for this reason they do not put pressure on firms in a particular direction; and environmental activists force firms to reduce inventories. The second element to explain the previous relationship is that there is a different level of stakeholder proactiveness contingent on the intensity in the implementation of social responsible policies. While employee demands are a priority for every firm, we posit that there is variation in the relative importance attached to customers and the natural environment: for low levels of CSR, customers are more relevant; and for higher levels of CSR, the natural environment gains importance.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sergey Rumyantsev & Serguei Netessine, 2007. "What Can Be Learned from Classical Inventory Models? A Cross-Industry Exploratory Investigation," Manufacturing & Service Operations Management, INFORMS, vol. 9(4), pages 409-429, April.
- Gérard P. Cachon & Marcelo Olivares, 2010. "Drivers of Finished-Goods Inventory in the U.S. Automobile Industry," Management Science, INFORMS, vol. 56(1), pages 202-216, January.
- de Vries, Jan, 2009. "Assessing inventory projects from a stakeholder perspective: Results of an empirical study," International Journal of Production Economics, Elsevier, vol. 118(1), pages 136-145, March.
- Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
- Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
- Petra Christmann & Glen Taylor, 2006. "Firm self-regulation through international certifiable standards: determinants of symbolic versus substantive implementation," Journal of International Business Studies, Palgrave Macmillan, vol. 37(6), pages 863-878, November.
- Manuel Branco & LÃºcia Rodrigues, 2006. "Corporate Social Responsibility and Resource-Based Perspectives," Journal of Business Ethics, Springer, vol. 69(2), pages 111-132, December.
- Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2005.
"Corporate Social Responsibility: Strategic Implications,"
Rensselaer Working Papers in Economics
0506, Rensselaer Polytechnic Institute, Department of Economics.
- Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2006. "Corporate Social Responsibility: Strategic Implications," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 1-18, 01.
- Marco Pagano & Paolo Volpin, 2001.
"Managers, Workers, and Corporate Control,"
CSEF Working Papers
75, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 09 Jan 2004.
- Manuel Arellano & Stephen Bond, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Oxford University Press, vol. 58(2), pages 277-297.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Robert E. Carpenter & Steven M. Fazzari & Bruce C. Petersen, 1994. "Inventory (Dis)Investment, Internal Finance Fluctuations, and the Business Cycle," Macroeconomics 9401001, EconWPA.
- de Vries, Jan, 2005. "The complex relationship between inventory control and organisational setting: Theory and practice," International Journal of Production Economics, Elsevier, vol. 93(1), pages 273-284, January.
- Vishal Gaur & Marshall L. Fisher & Ananth Raman, 2005. "An Econometric Analysis of Inventory Turnover Performance in Retail Services," Management Science, INFORMS, vol. 51(2), pages 181-194, February.
- Robert E. Carpenter & Steven M. Fazzari & Bruce C. Petersen, 1994. "Inventory Investment, Internal-Finance Fluctuation, and the Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(2), pages 75-138.
- Haltiwanger, John C & Maccini, Louis J, 1988.
"A Model of Inventory and Layoff Behaviour under Uncertainty,"
Royal Economic Society, vol. 98(392), pages 731-45, September.
- John Haltiwanger & Louis Maccini, 1984. "A Model of Inventory and Layoff Behavior Under Uncertainty," UCLA Economics Working Papers 321, UCLA Department of Economics.
- Tribo, Josep A., 2001. "Inventories, financial structure and market structure," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 79-89, May.
- Charles J. Corbett & Robert D. Klassen, 2006. "Extending the Horizons: Environmental Excellence as Key to Improving Operations," Manufacturing & Service Operations Management, INFORMS, vol. 8(1), pages 5-22, March.
- Andrew King & Michael Lenox, 2002. "Exploring the Locus of Profitable Pollution Reduction," Management Science, INFORMS, vol. 48(2), pages 289-299, February.
- Gary D. Eppen, 1979. "Note--Effects of Centralization on Expected Costs in a Multi-Location Newsboy Problem," Management Science, INFORMS, vol. 25(5), pages 498-501, May.
- Anil K Kashyap & Owen A. Lamont & Jeremy C. Stein, 1994. "Credit Conditions and the Cyclical Behavior of Inventories," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 565-592.
- Alan S. Blinder & Louis J. Maccini, 1991. "Taking Stock: A Critical Assessment of Recent Research on Inventories," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 73-96, Winter.
When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:143:y:2013:i:2:p:580-588. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.