Journal of Business Ethics

, Volume 140, Issue 1, pp 97–114

The Dark Side of Buyer Power: Supplier Exploitation and the Role of Ethical Climates

  • Martin C. Schleper
  • Constantin Blome
  • David A. Wuttke
Article

Abstract

Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen’s (1988) ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better.

Keywords

Economic liberalism Ethical climate Fairness Just prices Power Supplier exploitation Supply chain management 

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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  • Martin C. Schleper
    • 1
  • Constantin Blome
    • 2
  • David A. Wuttke
    • 1
  1. 1.Institute for Supply Chain Management – Procurement and Logistics (ISCM)EBS University for Business and LawOestrich-WinkelGermany
  2. 2.School of Business, Management and EconomicsUniversity of SussexFalmer, BrightonUK

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