How can suppliers increase their buyers’ CSR engagement: the role of internal and relational factors

Abstract

PurposeBuyer engagement proves important supports for suppliers' corporate social responsibility (CSR); however, little is known about whether and how buyer CSR engagement can be actively searched for by a supplier and what activities and policies of suppliers could enhance buyer CSR engagement. From the perspective of resource dependence theory, this study aims to explore how suppliers seek to achieve buyers' CSR engagement.Design/methodology/approachThe proposed model and hypotheses were tested by structural equation modeling methodology using survey data collected from 243 manufacturing and service firms in China.FindingsThe results show that instrumental CSR motives and internalization of CSR policies jointly improve buyers' dependence, which in turn increases buyers' CSR engagement. In addition, this study investigates the influence of suppliers' trust on the effect of buyers' dependence on buyers' CSR engagement and finds a negative moderating effect on the dependence–engagement relation.Practical implicationsThe findings show that suppliers can actively engage in CSR to strengthen their position and improve the buyer CSR engagement. In fact, proactive CSR policies and implementation do pay off in the long run for them.Originality/valueThis study offers a fresh perspective on the role of suppliers in improving CSR. In contrast to much of the literature that has considered buyer-initiated practices and policies, this is the first theoretical and empirical investigation into how suppliers can increase the buyer CSR engagement.

Determinants of Supply Chain Engagement in Carbon Management

“…Our results support this because although we found industrylevel GHG intensity to be a significant determinant of supply chain engagement (supporting H3), business strategies (H1) and political activity (H2) were considerably stronger determinants. We found that GHG intensity also increased customer engagement, thereby supporting a recent Peng et al (2022) study that indicated instrumental motives affect customer engagement. Consequently, both supplier and customer engagement in the disclosure procedure help reduce emissions' total impact in supply chains--not just supplier engagement, as Jira and Toffel (2013) and Luo et al (2012) also reported.…”

“…Thus, investing in environmental practices is not beneficial for suppliers if their customers are not doing the same, and gains can be achieved only if these customers value their suppliers' efforts. It also has been found that suppliers can engage their customers and increase customers' dependency in business through instrumental motives and international environmental policies (Peng et al, 2022). Thus, from a supplier perspective, engaging with customers in carbon management is essential and can improve business.…”

“…However, companies that operate in GHG-intensive industries are searching for compensating actions, e.g., carbon management in the supply chain, to avoid poor publicity or other negative consequences, interpreted here as an instrumental motive (Jira & Toffel, 2013). Recent studies have found that instrumental motives also affect customer engagement (Peng et al, 2022). Companies also have relational motives to implement carbon management because they might aim to comply with stakeholder norms, e.g., their customers' expectations, or environmental activists' demands (Paulraj et al, 2017).…”

“…Underlying firms' emission reduction strategies are their ethical considerations and motives for conducting carbon management and engaging supply chain members to pursue sustainability (Paulraj et al, 2017). The tendency to engage the supply chain to disclose emissions can be a value-driven action to foster collaboration based on a firm's relational or moral motives, or coercive pressure with instrumental motives to control and monitor suppliers or customers to benefit only a focal firm (Paulraj et al, 2017;Peng et al, 2022;Sharfman et al, 2009;Villena & Dhanorkar, 2020). The moral motive, in which a firm has a deontological duty (Montiel, 2008) and a moral obligation to "do the right thing," is the strongest driver of sustainability in supply chain management (Paulraj et al, 2017), and with collaboration, it can lead to far better results in the fight against climate change than unidirectional monitoring of emissions with a firm's self-serving interests (Dahlmann & Roehrich, 2019;Dhanda & Hartman, 2011;Paulraj et al, 2017).…”

“…Extant research into downstream supply chain engagement has focused mainly on consumer behavioral perspectives and customers' willingness to engage in sustainability initiatives (O'Brien et al, 2020). Peng et al (2022) demonstrated that customers' engagement deepens when they have joint instrumental motives and sustainability policies with their suppliers. However, extant studies that have examined both suppliers and customers' engagement in connection with a focal firm's motives for conducting sustainability initiatives, e.g., carbon management, are rare (Paulraj et al, 2017;Vachon & Klassen, 2006).…”