Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier (...) exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen’s ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better. (shrink)

This paper offers a new answer to an old question. Others have argued that exploitation is wrong because it is coercive, or degrading, or fails to protect the vulnerable. But these answers only work for certain cases; counterexamples are easily found. In this paper I identify a different answer to the question by placing exploitation within the larger family of wrongs to which it belongs. Exploitation is one species of wrongful gain, and exploiters always gain at the expense of others (...) by inflicting relative losses on disadvantaged parties. They do harm to their victims, even when their interactions are mutually advantageous, by failing to benefit the disadvantaged party as fairness requires. This failure is the essential wrong in every case of wrongful exploitation. At the end of the paper I assess how wrong this failure is as a way to gain at another's expense. (shrink)