Voluntary governance mechanisms in global supply chains: Beyond CSR to a stakeholder utility perspective

Vivek Soundararajan, Jill Brown (Contributor)

    Research output: Contribution to journalArticlepeer-review

    53 Citations (Scopus)
    506 Downloads (Pure)

    Abstract

    Poor working conditions remain a serious problem in supplier facilities in developing countries. While previous research has explored this from the developed buyers’ side, we examine this phenomenon from the perspective of developing countries’ suppliers and subcontractors. Utilizing qualitative data from a major knitwear exporting cluster in India and a stakeholder management lens, we develop a framework that shows how the assumptions of conventional, buyer-driven voluntary governance break down in the dilution of buyer power and in the web of factors rooted in suppliers’ traditions, beliefs, local demands and resource dependency. We reveal out how success in governing collaborative global supply chains often falls short within the subcontracting stage, where a stakeholder management mindset is elusive to most participants. We suggest that success in governing collaborative global supply chains is dependent on concepts of stakeholder utility and the presence of shared value that is often at odds with the realities of power, information asymmetry and compliance/reward systems inherent in the non-market coordination of global supply chains. Our findings offer important insights for delineating the concepts of value creation from CSR concepts and practices, and for modifying the basic assumptions of conventional supply chain governance.
    Original languageEnglish
    Pages (from-to)83-102
    JournalJournal of Business Ethics
    Volume134
    Issue number1
    Early online date11 Oct 2014
    DOIs
    Publication statusPublished - Mar 2016

    Keywords

    • Stakeholders
    • Cooperative governance
    • Voluntary governance mechanisms
    • Global supply chain
    • Developing countries

    ASJC Scopus subject areas

    • Business and International Management
    • Strategy and Management
    • Industrial relations

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