Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

Ethical sourcing and socially responsible purchasing is increasingly on the business agenda, but developing and implementing policy and practice across a global network of suppliers is challenging. The purpose of this paper is to expand theory on the nature of linkages between firms in a social network, specifically postulating how ties between organizations can be configured to facilitate development, diffusion, and adoption of sustainability initiatives. The theory development provides a lens with which to view the influence of a firm’s structural (...) embeddedness in its organizational social network on developing, diffusing and adopting sustainability initiatives. The focus is on brokers who in various structural alignments help bridge the focal firm’s sustainability initiatives with distant or disconnected stakeholders the focal firm is trying to reach. The brokers help the focal firm engage these stakeholders by sharing knowledge and information regarding sustainability initiatives and by incorporating localized needs into the development of the initiatives to facilitate better diffusion and adoption. The theoretical contribution of this manuscript is a novel perspective on sustainability in organizational networks. This perspective allows for greater explanatory power regarding how organizations can achieve sustainable outcomes that meet a broad base of stakeholder needs and better facilitate sustainability initiatives across a diverse and expansive network. (shrink)

Effective implementation and committed practice of sustainable procurement remain a significant challenge for many organisations across the globe. This paper sought to understand the extent to which employees’ perceptions influence the practice of sustainable procurement in the context of a developing country where sustainability awareness is low. Drawing on the Diffusion of Innovation theory, procurement officers’ perceptions of sustainable procurement were examined relative to the attributes of complexity, compatibility and relative advantage. Empirical data from 322 Ghanaian organisations were analysed using (...) descriptive statistics and structural equation modelling to determine the nature of procurement officers’ perceptions of sustainable procurement and the effects of the perceptions on relevant organisational practices. The findings indicate that whereas perceptions of relative advantage did not significantly influence the practice of sustainable procurement, perceptions of compatibility had a significant positive effect, and perceptions of complexity had a significant negative effect on sustainable procurement. This study offers insights into the link between employees’ perceptions and organisational sustainable procurement practice, thereby providing a conceptual basis for effective management of the pertinent relationships with implications for enhanced ethical practices in procurement and supply chain management. (shrink)

The objective of this research is to assess the impact of ethics on research productivity within laboratories of public universities. To achieve this objective, neural networks’ method is used to highlight impacting and impacted variable modalities. Findings show ethical variables having the greatest impact on research productivity are ethics supporting document and transparency, while the variables most impacted by ethics are publications and scientific projects. Finally, the originality of this work lies in the reconciliation of two dimensions that appear to (...) be irreconcilable a priori, namely, ethics which has a social connotation and productivity which has an economic connotation. It also resides in employing neural networks’ method, with is rarely used in social sciences. (shrink)

With the advent of responsible business, ensuring social responsibility in sourcing is of interest to both academics and practitioners. In this study, we examine one way of achieving this goal: ethical sourcing initiatives (ESIs). ESIs refer to a firm’s formal and informal actions to manage sourcing processes in an ethical and socially responsible manner. While ESIs have been established as an important part of corporate social responsibility, it is unclear whether, how, and when this corporate effort is economically beneficial. We (...) conduct an event study estimating the shareholder value effect of 159 publicly traded firms’ ESIs and find that the stock market reacts positively to ESIs in general. We also compare market reactions under different conditions including reactive versus proactive ESIs, and their interactions with initiative timing, firm size, and financial risk. Additionally, we find that ESIs are associated with long-term stock price and operating performance. Overall, our findings clarify the potential economic benefits of corporate ESIs and encourage buying firms to take these initiatives selectively according to business contexts. (shrink)