Supply chain screening without certification
Subtitle: the critical role of stakeholder pressure
By: Susan A. Kayser, John W. Maxwell, Michael W. Toffel
Contributors: Maxwell, John W., author; Toffel, Michael W., author; Harvard Business School
Series: Working paper / Harvard Business School -- 15-009; Working paper (Harvard Business School) -- 15-009.
Publisher: Harvard Business School
Published: 2014
Place of publication: Boston]
Language: eng
Number of pages: 31
Description: To assess and manage reputational risks associated with supply chains, buyers are increasingly seeking information about their suppliers' labor and environmental performance. Several voluntary programs have arisen to encourage suppliers to report this information in a standardized manner, but the information companies report might misrepresent their performance and can thus mislead rather than inform buyers. We hypothesize particular circumstances in which buyers can screen suppliers based on their participation in voluntary programs requiring public commitments and public reporting. In particular, we theorize that stakeholder scrutiny can effectively deter companies with misrepresentative disclosures from participating in such programs, and that this deterrence effect is stronger for smaller companies and in institutional contexts featuring stronger activist pressures and stronger norms of corporate transparency. Examining the decisions of 2,043 firms headquartered in 42 countries of whether to participate in the UN Global Compact, we find support for these hypotheses.
Notes: "August 2014" -- Publisher's website.

Includes bibliographical references (pages 21-25).