Foxconn Technology Group

Eccles, Robert G.; Serafeim, George; Cheng, Beiting

doi:10.4135/9781483381503.n487

Cited by 1 publication

(1 citation statement)

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“…Nevertheless, from time to time, social and environmental issues in supply chains come up in the form of severe corporate scandals (Tachizawa and Wong, 2015), with the potential to drag the reputations of companies operating in B2C interfaces (Czinkota et al , 2014). In addition to the cases involving palm oil production discussed earlier, companies like Apple, Sony, Toshiba, Huawei, Cisco, Nintendo and Nokia have all been linked to their supplier Foxconn’s extremely poor working conditions in China (Schaeffer, 2018).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

End-to-end sustainability: trade-offs, consumers’ perceptions and decisions beyond B2C interfaces

Park

Nunes

Ishizaka

2021

SCM

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Purpose This study aims to examine the extended effects of corporate (ir)responsibilities in supply chains. More specifically, the authors compare the impact of social and environmental initiatives and failures in the reputational capital of supply chain partners. The authors investigate how (and if) companies’ decisions to prioritize different sustainability dimensions in their supplier selection processes (i.e. sustainability trade-offs) affect consumers’ perception of corporate image, corporate credibility-expertise, attitude towards the firm and word-of-mouth. Design/methodology/approach The authors conducted three behavioural vignette-based experiments with 562 participants from the USA, relying on analysis of variance and t-tests analyses. Findings Results show that consumers perceive social irresponsibility cases as more severe than environmental ones in suppliers’ operations, penalizing buyers’ corporate image, corporate credibility-expertise and word-of-mouth. Corporate image, attitude towards the firm and word-of-mouth also have significant differences between social and environmental trade-offs. Statistically significant differences were also found between scenarios that portrayed the discovery of an irresponsible action and ones that reinforced the previous irresponsible practice in companies’ suppliers. Practical implications When types of irresponsibility practices are presented, the discovery of child labour and modern slavery conditions in suppliers damage how consumers perceive the company on corporate image and their attitude towards the organization and how they will spread word-of-mouth, reinforcing the importance of considering sustainability issues when making supplier selection decisions. Originality/value The study contributes to the understanding of how companies are perceived by their consumers regarding irresponsible practices and their impact on firms’ supplier selection decisions. Furthermore, data suggests that consumers might hierarchize sustainability dimensions, perceiving social irresponsibility cases as more severe than environmental irresponsibility ones.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%