Skip to main content
Log in

Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility? Clarifications, Exceptions and Implications

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. As typical of other business concepts, it is on its way to globalization through practices and structures of the globalized capitalist world order, typified in Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this capitalist world order, as MNCs are often challenged by the global reach of their supply chains and the possible irresponsible practices inherent along these chains. The possibility of irresponsible practices puts global firms under pressure to protect their brands even if it means assuming responsibilities for the practices of their suppliers. Pressure groups understand this burden on firms and try to take advantage of the situation. This article seeks to challenge the often taken-for-granted-assumption that firms should be accountable for the practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of the concept of responsibility. Except where corporate control and or corporate grouping exist, it identifies the use of power as a critical factor to be considered in allocating responsibility in firm–supplier relationship; and suggests that the more powerful in this relationship has a responsibility to exert some moral influence on the weaker party. The article highlights the use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training and value reorientation as possible sources of wielding positive moral influence along supply chains.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Blackburn S. (1996). Oxford Dictionary of Philosophy. Oxford University Press, Oxford

    Google Scholar 

  • Bowie N. E., Dunfee T. W. (2002). Confronting Morality in Markets. Journal of Business Ethics 38(4):381–393

    Article  Google Scholar 

  • Brown, J. and M. Fraser: 2004, ‹Competing Discourses in Social and Environmental Accounting: An Overview of the Conceptual Landscape’, VUW Working Paper Series

  • Cahn S. M. (2002). Classics of Political and Moral Philosophy.(Oxford University Press, Oxford) pp. 196–202

    Google Scholar 

  • Clarkson M. B. E. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review 20: 92–117

    Article  Google Scholar 

  • Collins, H.: 1990, ‹Ascription of Legal Responsibility to Groups in Complex Patterns of Economic Integration’, 53 M.L.R. 731 at p. 739ff

  • Covey S. R. (1992) The 7 Habits of Highly Effective People: Restoring the Character Ethic. Simon & Schuster, London

    Google Scholar 

  • Craig, E.: 2000, ‹Prospective and Retrospective Responsibility’, The Concise Routledge Encyclopedia of Philosophy, Routledge, London, 2000, p. 768 (under ‹responsibility’) Quoted by Farnell, D. (2004). Responsibility without Answerability: Disentangling the Two Forms of Moral Responsibility. Http://www. derrickfarnell.org/articles/Responsibility_without_ Answerability.htm#2craig1s, visited May 24, 2004

  • Crane A., Livesey S. (2003) Are You Talking to Me? Stakeholder Communication and the Risks and Rewards of Dialogue. in J. Andriof, S. Waddock, S. Rahman, B. Husted (eds.), Unfolding Stakeholder Thinking Vol. II: Relationships, Communication, Reporting and Performance. Sheffield, Greenleaf, pp. 39–52

    Google Scholar 

  • Crane A., Matten D. (2004), Business Ethics: A European Perspective – Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press, Oxford

    Google Scholar 

  • Deloitte Touche Tohmatsu (now Deloitte): 2002, Sustainability Reporting and Assurance – Trends, Challenges and Perspectives (Deloitte & Touche: Denmark). Quoted in Brown and Fraser (2004)

  • Vagts D. F. (1980), Disclosure and the Multinational Enterprise: The Costs of Illumination. in Norbert H. (eds) Legal Problems of Codes of Conduct for Multinational Enterprises Vol. 1. Kluwer, Antwerp, p. 315

    Google Scholar 

  • Donaldson T., Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications. Academy of Management Review 20:65–91

    Article  Google Scholar 

  • Drumwright M. (1994). Socially Responsible Organizational Buying. Journal of Marketing 58:1–19

    Article  Google Scholar 

  • Emmelhainz , M. A. and R. J. Adams: 1999, ‹The Apparel Industry Response to “Sweatshop” Concerns: A Review and Analysis of Codes of Conduct’, Journal of Supply Chain Management, summer, 51–57

  • Eshleman, A.: 2002, Moral Responsibility. The Stanford Encyclopedia of Philosophy (summer edition), E. N. Zalta (ed.), <http://plato.standford.edu/archives/sum2002/entries/moral-responsibility/> visited May 23, 2004

  • Evan, W. and R. E. Freeman: 1998, ‹A Stakeholder Theory for the Modern Corporation: Kantian Capitalism’, in T. Beauchamp and N. Bowie (eds.), Ethical Theory and Business (Englewood cliffs, Prentice Hall). Quoted in Crane and Livesey (2003)

  • Freeman R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman, Boston

    Google Scholar 

  • Freeman R. E. (1994). The Politics of Stakeholder Theory: Some Future Directions. Business Ethics Quarterly 4(4): 409–421

    Article  Google Scholar 

  • Graafland J. J. (2002). Sourcing Ethics in the Textile Sector: The Case of C&A. Business Ethics A European Review 11(3):282–294

    Article  Google Scholar 

  • Gray R., Dey C., Owen D., Evans R., Zadek S. (1997). Struggling with the Praxis of Social Accounting. Accounting, Auditing and Accountability Journal 10(3):325–364

    Article  Google Scholar 

  • Gray R., Owen D. L., Maunders K. (1987). Corporate Social Reporting: Accounting and Accountability. Prentice-Hall International, Hemel Hempstead, Herts

    Google Scholar 

  • Hovekamp H. Enterprise and American Law 1836–1937 (Cambridge, Massachusetts: Harvard University Press, 1991)

    Google Scholar 

  • Hohfeld W. N. (1909). Nature of Stockholders’ Individual Liability for Corporate Debts. Columbia Law Review 9:285–320

    Article  Google Scholar 

  • Jones I. W., Pollitt M. G. (1998). Ethical and Unethical Competition: Establishing the Rules of Engagement. Long Range Planning 31(5):703–710

    Article  Google Scholar 

  • D. C. Korten: 2004, The Responsibility of Business to the Whole, http://www.flora.org/library/mai/responsibility.html, visited May 10, 2004

  • Lucas J. R.: 1993, Responsibility (Oxford University Press, Oxford), p. 5. Quoted by Farnell, D. (2004). Responsibility without Answerability: Disentangling the Two Forms of Moral Responsibility. Http://www.derrickfarnell.org/articles/Responsibility_without_Answerability.htm#2 craig1s, visited May 24, 2004

  • MacIntyre A.: 1984, After Virtue: A Study in Moral Theory (2nd ed.), University of Notre Dame Press, Notre Dame, IN. Quoted in Crane and Matten (2004)

  • Maignan I., Ferrell O. C., Hult G. T. M. (1999). Corporate Citizenship: Cultural Antecedents and Business Benefits. Journal of the Academy of Marketing Science 27(4):455–469

    Article  Google Scholar 

  • Mamic I. (2005). Managing Global Supply Chain: The Sports Footwear, Apparel and Retail Sectors. Journal of Business Ethics 59(1–2):81–100

    Article  Google Scholar 

  • McGee A., Williams C., Scanlan G. (2005). The Law of Business Organisations. Law Matters, Exeter

    Google Scholar 

  • McWilliams A., Siegel D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review 26(1):7–127

    Article  Google Scholar 

  • Meeran R. (2000) Liability of Multinational Corporations: A Critical Stage in the UK. in T. K. Menno and S. Zia-Zarifi (eds.), Liability of Multinational Corporations Under International Law. Boston, Kluwer Law International, The Hague London, p. 251

    Google Scholar 

  • Milman D. (1999) Regulation of Business Organisations into the Millennium. in M. David (ed.), Regulating Enterprise: Law and Business Organisations in the UK. Hart Publishing Oxford and Portland, Oregon, p. 1

    Google Scholar 

  • Mullins L. J. (2002). Management and Organisational Behaviour, 6th ed. Financial Times Prentice Hall, London

    Google Scholar 

  • Owen D. L., Swift T. A., Humphrey C., Bowerman M. C. (2000). The New Social Audits: Accountability, Managerial Capture or the Agenda of Social Champions? European Accounting Review 9(1):81–98

    Article  Google Scholar 

  • Petts J. (1998). Environmental Responsiveness, Individuals and Organizational Learning: SME Experience. Journal of Environmental Planning and Management 41(6):711–730

    Article  Google Scholar 

  • Powell W. W., DiMaggio P. J. (1991). The New Institutionalism in Organizational Analysis. University of Chicago Press, IL

    Google Scholar 

  • Reed D. (1999). Three Realms of Corporate Responsibility: Distinguishing Legitimacy, Morality and Ethics. Journal of Business Ethics 21(1):23–35

    Article  Google Scholar 

  • Roberts J., Scapens R. (1985). Accounting Systems and Systems of Accountability: Understanding Accounting Practices in their Organizational Contexts. Accounting, Organizations and Society 10(4):443–456

    Article  Google Scholar 

  • Sako M. (1992). Prices, Quality and Trust: How Japanese and British Companies Manage Buyer Supplier Relations. Cambridge University Press, Cambridge

    Google Scholar 

  • Sarbutts N. (2003). Can SMEs “do” CSR? A Practitioner’s View of the Ways Small- and Medium-Sized Enterprises are Able to Manage Reputation through Corporate Social Responsibility. Journal of Communication Management 7(4):340–347

    Article  Google Scholar 

  • Schein E. H. (1985). Organizational Culture and Leadership. Jossey-Bass, San Francisco

    Google Scholar 

  • Spence L. J. (1999). Does Size Matter? The State of the Art in Small Business Ethics. Business Ethics A European Review 8(3):163–174

    Article  Google Scholar 

  • Spender P. (2000) Scenes from a Wharf: Containing the Morality of Corporate Law. in M. Fiona (ed.), International Corporate Law Vol. 1. Oxford University Press, Oxford; Portland, Oregon, p. 37

    Google Scholar 

  • Swift T. (2001). Trust, Reputation and Corporate Accountability to Stakeholders. Business Ethics A European Review 10(1):16–26

    Google Scholar 

  • Vagts, D. F.: 1980, Disclosure and the Multinational Enterprise: The Costs of Illumination (Kluwer, Deventer, The Netherlands)

  • Williams P. F. (1987). The Legitimate Concern with Fairness. Accounting, Organizations and Society 12(2):169–189

    Article  Google Scholar 

  • Wood G. (1996). Ethical Issues in Purchasing. in A. Kitson and R. Campbell (eds.), The Ethical Organisation. Macmillan, Basingstoke

    Google Scholar 

  • Zyglidopoulos S. C. (2002). The Social and Environmental Responsibilities of Multinationals: Evidence from the Brent Spar Case. Journal of Business Ethics 36(1–2):141–151

    Article  Google Scholar 

Cases

  • Amoco Cadiz [1984] 2 Lloys Rep. 304

  • Atlas Maritime Co. v Avalon Maritime Ltd (No 1) [1991] 4 All ER 769 (Staughton LJ)

  • Bosal Holding BV [2003] STC 1483

  • Bowoto v Chevron No. C99–2506 CAL (ND Calif.)

  • Cape Industries v Adams [1990] Ch 433

  • Dartmouth College v Woodward (1819) 4 Wheaton (U.S.) 518, 4 L.Ed. 629 at p.636

  • DHN Food Distributors Ltd v London Borough of Tower Hamlets [1976] 1 WLR 852 (Lord Denning)

  • First National Bank v Belotti (1978) 435 U.S. 765

  • ICI v Colmer [1998] STC 874

  • Littlewoods Mail Order Stores v Inland Revenue Commissioners [1969] 1 W.L.R. 1241 at 1254; [1969] 3 All ER 855 at 860 (Lord Denning)

  • Maritime Union of Australia v Patrick Stevedores Operations No. 1 Pty Ltd [1998] 153 ALR 602 (North J.)

  • Patrick Stevedores Operations No 2 Pty Ltd v Maritime Union of Australia [1998] 153 ALR 643

  • Re Union Carbide Gas Plant Disaster at Bhopal India 634 F.Supp. 842 (SYDY 1986), 25 ILM 771 (1986); affirmed as modified 809 F.2nd 195 (2nd Cir. 1987), 26 ILM 1008 (1987); Cert.den. 108 S.Ct. 199 (1987)

  • Salomon v Salomon & Co. [1897] A.C. 22.

  • Santa Clara County v Southern P.R. Co.(1886) 188 U.S. 394

  • The Albazero [1977] A.C. 774

Websites

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Kenneth M. Amaeshi.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Amaeshi, K., Osuji, O. & Nnodim, P. Corporate Social Responsibility in Supply Chains of Global Brands: A Boundaryless Responsibility? Clarifications, Exceptions and Implications . J Bus Ethics 81, 223–234 (2008). https://doi.org/10.1007/s10551-007-9490-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-007-9490-5

Keywords

Navigation