No abstract

No abstract

PurposeContracts and trust are mechanisms to coordinate processes in supply chains. However, contracts are incomplete and trust takes time to develop. The aim of this paper is to show how Social Accountability 8000 (SA8000) can help to manage supply chains (in particular small and medium‐sized companies as its partners) by solving the problem of incomplete contracts as well as replacing trust in new partnerships, especially with respect to intangible performance indicators.Design/methodology/approachSupply chain management (with an emphasis on coordination) and corporate social responsibility (with an emphasis on codes, especially SA8000) are briefly described, based on a literature review. These descriptions led to three research propositions. In the second part, four cases describe the practice of SA8000. The richness of the cases provides both literal and theoretical replication. Finally, the theoretical and empirical results are compared, with specific regard to the research propositions.FindingsCodes facilitate coordination between immediate partners in a supply chain, especially when the most powerful one enforces the code. However, indirect coordination with second‐ or third‐tier partners is hardly influenced. Chain directors can impose SA8000 certification in the supply chain and the latter can benefit from reduced information asymmetry. Transaction costs are reduced without a loss in flexibility.Research limitations/implicationsThe three propositions introduced are supported. Further research could further strengthen the validity of the propositions or show the need for refinements in them. The results show managers that certification can facilitate coordination of intangible aspects of performance to reduce information asymmetry with at least no negative results.Practical implicationsFirms that use SA8000 should take more advantage of it because it reduces information asymmetry and transaction costs, not only between direct partners but also further up‐ and downstream in the chain. Chain directors can use codes to complement incomplete contracts. Third‐party monitoring should be strengthened, especially with respect to second‐ and third‐tier partners.Originality/valueThe originality of the paper is in the analysis of the position of the second‐ and third‐tier participants in the chain, questioning whether codes like SA8000 are a sufficient instrument to make them real partners in the chain. SA8000 increases traceability of proper processes by customers and partners in the chain, which facilitates the coordination and the management of the chain.

No abstract

The aim of this paper is to investigate the pressure exerted by supply chain partners, especially large-scale business customers and public authorities, on small-and medium-sized enterprises (SMEs) to adopt corporate social responsibility (CSR) practices. More specifically, we analyze how SME suppliers perceive and respond to supply chain pressure and then we investigate if such pressure is effective. The analysis is carried out through four case studies within SMEs in the UK. These cases are deliberately chosen to illustrate to students and CSR practitioners the potential range of different viewpoints in relation to CSR and supply chain management. The article suggests that, in order to enhance the perception of supply chain pressure as a CSR driver by SMEs, derived benefits should be more clearly identified (including moral, rational, as well as economic). There is also the risk that, when CSR requirements are imposed by large-scale business customers and public authorities, SMEs have difficulties in implementing CSR and consequently are tempted to behave opportunistically. An opportunistic behaviour can be associated to the large-scale business customers and the public authorities as well, when their commitment in CSR is perceived as only superficial. Thus there seems to be the need for a higher level of trust in such actors in order to share the potential benefits and costs related to CSR among all supply chain partners. In some cases, supply chain pressure can be detrimental to the existing initiatives voluntarily carried out by SMEs, which can consequently decrease their intrinsic motivation to engage.