Skip to main content
Log in

Researching the Drivers of Socially Responsible Purchasing: A Cross-National Study of Supplier Diversity Initiatives

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

What drives organisations to engage in socially responsible purchasing initiatives? To investigate this important question, this article uses a case-study approach to examine the context within which supplier diversity programmes have emerged in both the U.S. and U.K. The analysis identifies legislative and policy developments, economic imperatives, stakeholder pressures and ethical influences as forces shaping organisational responses. It reveals important contextual differences between U.K. and U.S. experience and offers an empirical and theoretical explanation of corporate behaviour.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Backhaus K. B., B. A. Stone, K. Heiner 2002, Exploring the Relationship Between Corporate Social Performance and Employer Attractiveness. Business and Society 41(3), 292–318

    Article  Google Scholar 

  • Bank of England: 1999, The Financing of Ethnic Minority Firms. Bank of England, London

    Google Scholar 

  • Bansal P., K. Roth 2000, Why Companies Go Green: A Model of Ecological Responsiveness. The Academy of Management Journal 43(4), 717–736

    Article  Google Scholar 

  • Barclays Bank: 2005, Black and Minority Ethnic Business Owners: A Market Research Perspective. SME Research Team, Barclays Bank, London

    Google Scholar 

  • Barney J. 1991, Firm Resources and Sustained Competitive Advantage. Journal of Management 17, 99–120

    Article  Google Scholar 

  • Baron D. 2001, Private Politics, Corporate Social Responsibility and Integrated Strategy. Journal of Economics and Management Strategy 10, 7–45

    Article  Google Scholar 

  • Bates T. 1997, Race, Self-Employment and Upward Mobility: an Illusive American Dream. The Woodrow Wilson Center Press, Washington

    Google Scholar 

  • Bayles M. D. 1983, Ethical Issues in Purchasing Management. Business Quarterly 48(1), 42–47

    Google Scholar 

  • Boston T. D. 1999, Affirmative Action and Black Entrepreneurship. Routledge, London

    Google Scholar 

  • Burke L., J. M. Logsdon 1996, How Corporate Social Responsibility Pays Off. Long Range Planning 29(4), 495–502

    Article  Google Scholar 

  • Carter C. R., M. M. Jennings2000, Purchasing’s Contribution to the Socially Responsible Management of the Supply Chain. Centre for Advanced Purchasing Studies, Arizona State University

    Google Scholar 

  • Carter C. R., R. J. Auskalnis, C. L. Ketchum 1999 Purchasing from Minority Business Enterprises: Key Success Factors. Journal of Supply Chain Management 35(1), 28–32

    Article  Google Scholar 

  • Cox, T.: 2003, Report on Supplier Diversity, prepared for The Procurement Task Force, New Detroit Inc. Available online from www.newdetroit.org

  • Diversity Inc.Com: 2002, The Business case for Diversity: the Proof, the Strategies and the Industries in the Front Line, 3rd Edition. Allegiant Media Inc, New Brunswick NJ

    Google Scholar 

  • Davis, K.: 1973, The Case for and Against Business Assumptions of Social Responsibilities, Academy of Management Journal 16, 312–322

    Article  Google Scholar 

  • Dollinger M. J., C. M. Daily 1991, Purchasing from small minority-owned firms: corporate problems. Center for Advanced Purchasing Studies/National Association of Purchasing Management, Tempe, Arizona

    Google Scholar 

  • Dollinger M. J., C. A. Enz, C. M. Daily 1991, Purchasing from Minority Small Business. International Journal of Purchasing and Materials Management 27(2), 9–14

    Google Scholar 

  • Drumwright M. E. 1994, Socially Responsible Organizational Buying: Environmental Concern as a Non-economic Buying Criterion. Journal of Marketing 58, 1–19

    Article  Google Scholar 

  • Friedman, M.: 1970, ‹The Social Responsibility of Business is to Increase its Profits’, New York Times Magazine, September 13, 33, 122–126

  • Giunipero L. C. 1980, Differences between Minority and Non-Minority Suppliers. Journal of Purchasing and Materials Management 16(1), 2–8

    Google Scholar 

  • Giunipero L. C. 1981, Developing Effective Minority Purchasing Programs. Sloan Management Review 22(2), 33–42

    Google Scholar 

  • Haringey Council: 2005, Haringey SME Procurement Pilot: Community Benefit Clauses in Tenders and Contracts. Available at www.haringey.gov.uk

  • Hart S. 1995, A natural resource-based view of the firm. Academy of Management Review 20, 986–1014

    Article  Google Scholar 

  • Hudson Institute: 1987, Workforce 2000. Hudson Institute, Washington D.C

    Google Scholar 

  • Husted B. W., J. De Jesus Salazar 2006, Taking Friedman Seriously: Maximizing Profits and Social Performance. Journal of Management Studies 43(1), 75–91

    Article  Google Scholar 

  • Jain H. C., A. Verma 1996, Managing Workforce Diversity for Competitiveness: The Canadian Experience. International Journal of Manpower 17(4/5), 14–29

    Article  Google Scholar 

  • Jones M. T. 1999, The Institutional Determinants of Social Responsibility. Journal of Business Ethics 20, 163–179

    Article  Google Scholar 

  • Kochan T. et␣al. 2003, The Effects of Diversity on Business Performance: Report of the Diversity Research Network. Human Resource Management 42(1), 3–21

    Article  Google Scholar 

  • Landeros R., R. E. Plank 1996, How Ethical are Purchasing Management Professionals?. Journal of Business Ethics 15(7), 789–803

    Article  Google Scholar 

  • Lantos G.P. 2001, The Boundaries of Strategic Corporate Social Responsibility. The Journal of Consumer Marketing 18(7), 595–649

    Article  Google Scholar 

  • MBDA: 2000, The Emerging Minority Marketplace: Minority Purchasing Power 2000 to 2045 (US Department of Commerce, Minority Business Development Agency, Washington DC). Available at www.mdba.gov/documents/purchasing_power.pdf

  • McWilliams A., D. Siegel 2000, Corporate Social Responsibility and Financial Performance: Correlation or Misspecification? Strategic Management Journal 21, 603–609

    Article  Google Scholar 

  • McWilliams A., D. S. Siegel, P. M. Wright 2006, Corporate Social Responsibility: Strategic Implications. Journal of Management Studies 43(1), 1–18

    Article  Google Scholar 

  • New S. 2004, The Ethical Supply Chain. In: S. New, R. Westbrook (eds) Understanding Supply Chains: Concepts, Critiques and Futures. OUP, Oxford, pp 253–280

    Google Scholar 

  • Noon, M.: 2004, ‚Managing Equality and Diversity’, in I.␣Beardwell, L. Holden and T. Claydon (eds.), Human␣Resource Management: A Contemporary Approach, 4th Edition. (FT/Prentice Hall, Harlow), pp. 230–257

  • Pearson J. N., S. E. Fawcett, A. Cooper 1993, Challenges and Approaches to Purchasing from Minority-Owned Firms. Entrepreneurship: Theory and Practice 18(2), 71–88

    Google Scholar 

  • Porter, M.E. and M. R. Kramer: 2002, ‚The Competitive Advantage of Corporate Philanthropy’, Harvard Business Review December, 57–68

  • Posnikoff J. 1997, Divestment from South Africa: They Did Well by Doing Good. Contemporary Economic Policy 15, 76–86

    Article  Google Scholar 

  • Ram M., D. Smallbone 2003, Supplier Diversity Initiatives and the Diversification of Ethnic Minority businesses in the UK. Policy Studies 24(4), 187–204

    Article  Google Scholar 

  • Ram M., N. Theodorakopolous, I. Worthington 2006, Implementing Supplier Diversity in the UK: SDEM as Mindful Policy Transfer, Occasional Paper 77. Leicester Business School, Leicester, UK

    Google Scholar 

  • Rice M. F. 1993, State and Local Government Set-Aside programs, disparity studies and minority business development in the post-Croson era. Journal of Urban Affairs 15(6), 529–553

    Google Scholar 

  • Roberts S. 2003, Supply Chain Specific: Understanding the Patchy Success of Ethical Sourcing Initiatives. Journal of Business Ethics 44, 159–170

    Article  Google Scholar 

  • Russo M., P. Fouts 1997, A Resource-Based Perspective on Corporate Environmental Performance and Profitability. Academy of Management Journal 40, 534–559

    Article  Google Scholar 

  • Shah M., M. Ram 2006, Supplier Diversity and Minority Business Enterprise Development: Case Study Experience of Three U.S. Multinationals. Supply Chain Management: An International Journal 11(1), 75–81

    Article  Google Scholar 

  • Spratlen, T. H.: 1978, ‚The Impact of Affirmative Action Purchasing’, Journal of Purchasing and Materials Management 14, 6–8 and 32

    Google Scholar 

  • Van Marrewijk M. 2003, Concepts and Definitions of CSR and Corporate Sustainability: Between Agency and Communion. Journal of Business Ethics 44, 95–105

    Article  Google Scholar 

  • Waddock S. A., S. B. Graves 1997, The Corporate Social Performance- Financial Performance Link. Strategic Management Journal 18(4), 303–319

    Article  Google Scholar 

  • Waddock S. A., C. Bodwell, S. B. Graves 2002, Responsibility: The New Business Imperative. The Academy of Management Executive 16(2), 132–148

    Google Scholar 

  • Wright P., S. Ferris 1997, Agency Conflict and Corporate Strategy: The Effect of Divestment on Corporate Value. Strategic Management Journal 18, 77–83

    Article  Google Scholar 

  • Yin R. K. 1989, Case Study Research: Design and Methods. Sage: London

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ian Worthington.

Additional information

Dr Ian Worthington is a Reader in Corporate Social Responsibility at the Leicester Business School, De Montfort University, Leicester, UK.

Professor Monder Ram is Professor of Small and Ethnic Businesses at the Leicester Business School, De Montfort University, Leicester, UK.

Harvinder Boyal is a Research Assistant in the Leicester Business School, De Montfort University, Leicester, UK.

Mayank Shah is a doctoral student in the Leicester Business School, De Montfort University, Leicester, UK.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Worthington, I., Ram, M., Boyal, H. et al. Researching the Drivers of Socially Responsible Purchasing: A Cross-National Study of Supplier Diversity Initiatives. J Bus Ethics 79, 319–331 (2008). https://doi.org/10.1007/s10551-007-9400-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-007-9400-x

Keywords

Navigation