The impact of multinational corporations’ socially responsible supplier development practices on their corporate reputation and financial performance

Information Transparency, Location, and Stakeholder Pressure on the Socially Responsible Partner Selection

ABSTRACT Objective: the purpose of this paper is to explore the effect of information transparency on the selection of a socially responsible partner, taking into account the role played by signal send by the location of the partner and stakeholder pressure. Theoretical approach: this study is based on the premise that information transparency is a central element in the buyer-supply relationship and can play a key role in the selection of a socially responsible partner. The location of a partner can also affect the feeling of transparency if the country where the partner is located is not recognized for its reputation. The stakeholder pressure for socially responsible practices can also affect the decision to choose a business partner. Methods: we employed a 2 x 2 full-factorial between-subjects, scenario-based role-playing experiment. In Study 1, we simulated a situation in which the buyer is asked about their likelihood of selecting a socially responsible supplier, while in Study 2 we simulated a situation in which the socially responsible supplier is asked about the likelihood of selling products to a buyer. Results: the results indicate that information transparency affects the decision to select socially responsible partners. Stakeholder pressure partially moderates this relationship, while location does not moderate this relationship in either study. Conclusion: we conclude that information transparency throughout the supply chain is a relevant factor in negotiations within a socially responsible context. Information transparency is a key aspect for both the buyer and the supplier when selecting a socially responsible partner.

Environmental Practices That Have Positive Impacts on Social Performance: An Empirical Study of Malaysian Firms

Despite many environmental studies, the literature lacks studies emphasizing the significant nature of the human–environment connection. This study focuses on the impact of manufacturing environmental practices on social performance, which is crucial for employees’ wellbeing, human development, and quality of life that lacks empirical evidence. This study searches for a mechanism to enhance social performance through sustainable practices and test the mediating effects of environmental collaboration. This study examines the proposed hypotheses on the data sample of 120 Malaysian manufacturing firms, with partial least squares structural equation modeling. Explicitly, the results reveal sustainable practices comprised of purchasing social responsibility (PSR), long term orientation (LTO), supplier assessment (SA), and environmental collaboration (EC) contribute almost 50% of social performance. Still, LTO and SA are the best practices. PSR, LTO, and SA significantly contribute 45% of EC, but LTO and PSR remain the best sustainable practices. Firms investing in these sustainable practices of improving social performance, driven by sustainability, show these are worthy strategies. Concentrating on certain sustainable practices could improve employees’ wellbeing, human development, and quality of life. The novel contribution of the study is the formulation of social performance and its empirical work testing the mediating effects of EC between sustainable practices and social performance.

Does a retailer's performance depend on CSR practices? A stakeholder theory perspective from developing economy

Purpose

The study aims to examine the relationship between retailer's performance and corporate social responsibility (CSR) practices in Indian context. The article introduces a new conceptual model considering the parameters as per the stakeholder theory perspective.

Design/methodology/approach

The authors conducted empirical research with CSR practices (CSRP) and other parameters to evaluate the retailers' performance using stakeholder theory. The authors present the results from 292 valid responses from the Indian retailers. The study used structured equation modeling (SEM) to present the analysis and the results.

Findings

Findings indicate that CSRP along with additional constructs loyalty (L), reputation (R), customer satisfaction (CS) and competitive advantage (CA) have positive and significant impact on organizational performance (OP).

Practical implications

The framework will serve as a guiding tool to the management of the retail outlets to examine carefully the link among CSRP with other variables presented in the study and subsequently to the retail outlet performance. The retailers must be more focused on the expectations and demands of the customers concerning products and services for better growth of the firms.

Originality/value

The uniqueness of the study lies in “CSR practices enabled integrated model” to examine the performance of the organizations. The proposed theoretical model would add value to the existing literature to help the retailers in process of their performance improvement.

Communicating supply chain sustainability: transparency and framing effects

Purpose

Firms employ various forms of disclosure to demonstrate commitment to and involvement in sustainable supply chain management (SSCM) practices. This research provides guidance to firms employing framing strategies when communicating their SSCM with external stakeholders like consumers as part of their supply chain transparency efforts.

Design/methodology/approach

The authors employed a middle-range theorizing approach to understand the context of SSCM practices and mechanisms of variously framed communication methods to disclose sustainability information to consumers. The authors conducted two experiments in an e-waste recycling context, studying how sustainable information disclosed to consumers using attribute framing and goal framing can affect consumers' attitudes. The authors also examined the moderating role of consumers' environmental involvement.

Findings

Results suggest that when attribute framing is used, firms should avoid framing the attribute from a negative valence. When goal framing is used, messages with consequences stated as “avoid loss” yield the most substantial effect. Additionally, framing effects are more significant for consumers with higher-than-average environmental involvement.

Originality/value

The authors’ results contribute to the ongoing theorization of SSCM by providing contextual understanding of how to communicate sustainability information. Corroborating evidence from marketing, framing effects are found to be context specific, thereby elucidating the framing literature more fully to the SSCM context. The authors extend this literature by studying attribute framing and comparing the effectiveness of all possible goal framing combinations of valence and gain/loss perspective in the SSCM communication context.

Green supplier integration and environmental performance: do environmental innovation and ambidextrous governance matter?

Purpose

Since firms are often puzzled with the adoption of proper governing mechanism to achieve their environmental benefits, this research examines how green supplier integration (GSI) affects environmental performance via environmental innovation and the moderating role of ambidextrous governance.

Design/methodology/approach

The authors tested the hypotheses by adopting two-waved survey data from 206 Chinese manufacturers and the hierarchical regression analysis.

Findings

The results revealed that GSI is positively linked with both incremental and radical environmental innovation, which further enhance environmental performance. Moreover, balanced ambidexterity enhanced the link between GSI and incremental environmental innovation, while combined ambidexterity alleviated the link between GSI and radical environmental innovation.

Practical implications

Firms should integrate suppliers into their activities of dealing with environmental issues to realize environmental benefits through facilitating environmental innovation. Moreover, the choice of different dimensions of ambidextrous governance can affect the environmental benefits of GSI.

Originality/value

This research enriches the authors’ understanding of how to achieve environmental benefits by engaging in GSI, and it provides a novel and insightful approach for better managing GSI from the perspective of ambidextrous governance.