Skip to main content
SpringerLink
Log in

Agency Theory and Sustainability in Global Supply Chain

  • Chapter
  • First Online:
Agency Theory and Sustainability in the Global Supply Chain

Part of the book series: SpringerBriefs in Business ((BRIEFSBUSINESS))

Abstract

The third chapter discusses the contribution of corporate responsibility collaborations among competitors. The study explains the origin of agency problems in global supply chain and the negative impact of opportunistic behaviours on sustainable development. After that, it addresses the effects of collaboration among competitors on the degree of suppliers’ compliance and analyses how this collaboration shapes the code of conduct’s monitoring system and relationship management.

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

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 44.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 59.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    See Chap. 1 for additional details.

  2. 2.

    From the website of the Sustainable Apparel Coalition (https://apparelcoalition.org/collaboration-impact/).

  3. 3.

    From this, it follows that the contractual control is especially usable in buyer–supplier relationships that are not necessarily long-term, where power rests mainly with one side of the relationship, desired output is clear and measurable and incentives can directly be connected to the output (Tomkins 2001).

References

  • Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38(4), 932–968.

    Article  Google Scholar 

  • Amaeshi, K. M., Osuji, O. K., & Nnodim, P. (2008). Corporate social responsibility in supply chains of global brands: A boundaryless responsibility? Clarifications, exceptions and implications. Journal of Business Ethics, 81(1), 223–234.

    Article  Google Scholar 

  • Andersen, M., & Skjøtt-Larsen, T. (2009). Corporate social responsibility in global supply chains. Supply Chain Management: An International Journal, 14(2), 75–86.

    Article  Google Scholar 

  • Appolloni, A., Risso, M., & Zhang, T. (2013). Collaborative approach for sustainable auditing of global supply chains. Symphonya, 2, 19–31.

    Google Scholar 

  • Arrow, K. (1985). The economics of agency. In J. Pratt & R. Zeckhauser (Eds.), Principals and agents: The structure of business (pp. 37–51). Boston, MA: Harvard University Press.

    Google Scholar 

  • Arya, B., & Salk, J. (2006). Cross-sector alliance learning and effectiveness of voluntary codes of corporate social responsibility. Business Ethics Quarterly, 16(2), 211–234.

    Article  Google Scholar 

  • Barrientos, S. (2002). Mapping codes through the value chain. In R. Jenkins, R. Pearson, & G. Seyfang (Eds.), Corporate Social responsibility and labour rights—Codes of conduct in the global economy (pp. 61–76). London: Earthscan Publications Ltd.

    Google Scholar 

  • Bensaou, M., & Anderson, E. (1999). Buyer supplier relations in industrial markets: When do buyers risk making idiosyncratic investments? Organization Science, 10(4), 460–481.

    Article  Google Scholar 

  • Bergen, M., Dutta, S., & Walker, O. C., Jr. (1992). Agency relationships in marketing: A review of the implications and applications of agency and related theories. The Journal of Marketing, 56(3), 1–24.

    Article  Google Scholar 

  • Buvik, A., & Reve, T. (2002). Inter-firm governance and structural power in industrial relationships: The moderating effect of bargaining power on the contractual safeguarding of specific assets. Scandinavian Journal of Management, 18(3), 261–284.

    Article  Google Scholar 

  • Ciliberti, F., de Haan, J., de Groot, G., & Pontrandolfo, P. (2009). Codes to coordinate supply chains: SMEs’ experiences with SA8000. Supply Chain Management: An International Journal, 14(2), 117–127.

    Article  Google Scholar 

  • Das, T. K., & Rahman, N. (2002). Opportunism dynamics in strategic alliances. In F. J. Contractor & P. Lorange (Eds.), Cooperative strategies and alliances (pp. 89–118). Kidlington Oxford: Elsevier Science Ltd.

    Google Scholar 

  • Delbufalo, E., & Bastl, M. (2018). Multi-principal collaboration and supplier’s compliance with codes-of-conduct. International Journal of Logistics Management (forthcoming).

    Google Scholar 

  • Eisenhrdt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.

    Google Scholar 

  • Emmelhainz, M., & Adams, R. (1999). The apparel industry response to ‘sweatshop’ concerns—A review and analysis of codes of conduct. Journal of Supply Chain Management, 35(3), 51–57.

    Article  Google Scholar 

  • Eriksen N. S., & Jessen Z. K. (2009). Enhancing code of conduct compliance. Exploring SME possibilities of control among Chinese suppliers (Masters Thesis). Department of Management, Copenhagen Business School, 12 May.

    Google Scholar 

  • Gereffi, G. (2001). Beyond the producer-driven/buyer driven dichotomy. The evolution of global value chains in the internet era. IDS Bulletin, 32(3), 30–40.

    Article  Google Scholar 

  • Grayson, D. (2014, August 4). Why collaborating with the competition can make business sense. The Guardian. https://www.theguardian.com/sustainable-business/collaborating-competition-business-sense-sustainability.

  • Greve, C. (2000). Exploring contracts as reinvented institutions in the Danish Public Sector. Public Administration, 78(1), 153–164.

    Article  Google Scholar 

  • Hill, R. P., & Rapp, J. M. (2014). Codes of ethical conduct: A bottom-up approach. Journal of Business Ethics, 123, 621–630.

    Article  Google Scholar 

  • Jenkins, R. (2001). Corporate codes of conduct. Self-regulation in a global economy. Geneva: United Nations Research Institute for Social Development.

    Google Scholar 

  • Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305–360.

    Article  Google Scholar 

  • Jiang, B. (2009). The effects of interorganizational governance on supplier’s compliance with SCC: An empirical examination of compliant and non-compliant suppliers. Journal of Operations Management, 27, 267–280.

    Article  Google Scholar 

  • Joint Audit Cooperation (JAC). (2017). Audit process overview. Information for suppliers. Version 01-20140116. Available at http://jac-initiative.

  • Kapstein, E. B. (2001). The corporate ethics crusade. Foreign Affairs, 80(5), 105–119.

    Article  Google Scholar 

  • Koch, C. A. (1995). Economic transactions, opportunistic behavior and protective mechanisms. Odense, Denmark: University of Southern Denmark, Department of Management.

    Google Scholar 

  • Kolk, A. (2000). Economics of environmental management. Edinburgh Gate, Harlow, England: Pearson Education Limited.

    Google Scholar 

  • Lassar, W. M., & Kerr, J. L. (1996). Strategy and control in supplier-distributor relationships: An agency perspective. Strategic Management Journal, 17(8), 613–632.

    Article  Google Scholar 

  • Lee, K.-H., & Kim, J. W. (2009). Current status of CSR in the realm of supply management: The case of the Korean electronics industry. Supply Chain Management: An International Journal, 14(2), 138–148.

    Article  Google Scholar 

  • Maloni, M. J., & Brown, M. E. (2006). Corporate social responsibility in the supply chain: An application in the food industry. Journal of Business Ethics, 68(1), 35–52.

    Article  Google Scholar 

  • Mele, V., & Schepers, D. H. (2013). E pluribus unum? Legitimacy issues and multi-stakeholder codes of conduct. Journal of Business Ethics, 118, 561–576.

    Article  Google Scholar 

  • Milgrom, P., & Roberts, J. (1992). Economics, organization and management. New Jersey: Prentice Hall Inc.

    Google Scholar 

  • Mishra, D. P., Heide, J. B., & Cort, S. G. (1998). Information asymmetry and levels of agency relationships. Journal of Marketing Research, 35(3), 277–295.

    Article  Google Scholar 

  • Mitnick, B. M. (1973). Fiduciary rationality and public policy: The theory of agency and some consequences. 1973 Annual Meeting of the American Political Science Association. New Orleans, LA: Proceedings of the American Political Science Association.

    Google Scholar 

  • Network for Business Sustainability (NBS). (2017). Competitor collaboration is more than a trend (September 8). https://nbs.net/p/competitor-collaboration-is-more-than-a-trend-21579740-5a40-43d2-80f1-c3475ace1738.

  • O’Donnell, S. W. (2000). Managing foreign subsidiaries: Agents of headquarters, or an independent network? Strategic Management Journal, 21(5), 525–548.

    Article  Google Scholar 

  • Pedersen, E. R., & Andersen, M. (2006). Safeguarding corporate social responsibility (CSR) in global supply chains: How codes of conduct are managed in buyer-supplier relationships. Journal of Public Affairs, 6(3/4), 228–240.

    Article  Google Scholar 

  • Peloza, J., & Falkenberg, L. (2009). The role of collaboration in achieving corporate social responsibility objectives. California Management Review, 51(3), 95–113.

    Article  Google Scholar 

  • Perrow, C. (1986). Complex organizations: A critical essay (3rd ed.). New York: Random House.

    Google Scholar 

  • Petersen, T. (1993). The economics of organization: The principal-agent relationship. Acta Sociologica, 36(3), 277–293.

    Article  Google Scholar 

  • Prosman, E. J., Scholten, K., & Power, D. (2016). Dealing with defaulting suppliers using behavioral based governance methods: an agency theory perspective. Supply Chain Management: An International Journal, 21(4), 499–511.

    Article  Google Scholar 

  • Risso, M. (2012). A horizontal approach to implementing corporate social responsibility in international supply chains. International Journal of Technology Management, 58(1/3), 64–82.

    Article  Google Scholar 

  • Saam, N. J. (2007). Asymmetry in information versus asymmetry in power: Implicit assumptions of agency theory? The Journal of Socio-Economics, 36, 825–840.

    Article  Google Scholar 

  • Sethi, S. P. (2002). Standards for corporate conduct in the international arena: Challenges and opportunities for multinational corporations. Business and Society Review, 107(1), 20–40.

    Article  Google Scholar 

  • Sobczak, A. (2006). Are codes of conduct in global supply chains really voluntary? From soft law regulations of labour relations to consumer law. Business Ethics Quarterly, 16(2), 167–184.

    Article  Google Scholar 

  • Tomkins, C. (2001). Interdependencies, trust and information in relationships, alliances, and networks. Accounting, Organizations and Society, 26, 161–191.

    Article  Google Scholar 

  • Utting, P. (2000). Business responsibility for sustainable development. United Nations Research Institute for Sustainable Development (UNRISD), Geneva.

    Google Scholar 

  • Whipple, J. M., & Roh, J. (2010). Agency theory and quality fade in buyer-supplier relationships. The International Journal of Logistics Management, 21(3), 338–352.

    Article  Google Scholar 

  • Williamson, O. E. (1993). Calculativeness, trust and economic organization. Journal of Law and Economics, 36, 453–486.

    Article  Google Scholar 

  • World Bank. (2003). Strengthening implementation of corporate social responsibility in global supply chains. The World Bank.

    Google Scholar 

Bibliography

  • Bitch Olsen, P., & Pedersen, K. (1999). Problemorienteret pro-jektarbejde: En værktøjsbog (2nd ed.). Copenhagen: Roskilde Universitetsfor-lag.

    Google Scholar 

  • Castka, P., & Balzarova, M. A. (2008). ISO 26000 and supply chains—On the diffusion of the social responsibility standard. International Journal of Production Economics, 11, 274–286.

    Article  Google Scholar 

  • Dees, J. G. (1992). Principals, agents and ethics. In N. E. Bowie & R. E. Freeman (Eds.), Ethics and agency theory (pp. 25–59). New York/ Oxford: Oxford Uni-versity Press.

    Google Scholar 

  • Eltantawy, R. A., Giunipero, L., & Fox, G. L. (2009). A strategic skill based model of supplier integration and its effect on supply management performance. Industrial Marketing Management, 38(8), 925–936.

    Article  Google Scholar 

  • Fama, E. F., & Jensen, M. C. (1986). Separation of ownership and control. Journal of Law and Economics, 26, 327–349.

    Article  Google Scholar 

  • Gereffi, G. (1994). The organisation of buyer-driven global com-modity chains: how US retailers shape overseas production net-works. In G. Gereffi & M. Korzeniewicz (Eds.), Commodity chains and global capitalism (pp. 95–122). CT: Greenwood Press, Westport.

    Google Scholar 

  • Jenkins, R., Pearson, R., & Seyfang, G. (2002). Introduction. In R. Jenkins, R. Pearson, & G. Seyfang (Eds.), Corporate respon-sibility and labour rights. Codes of conduct in the global economy (pp. 1–10). London: Earthscan Publications.

    Google Scholar 

  • Kortelainen, K. (2008). Global supply chains and social re-quirements: Case studies of labour condition auditing in the Peo-ple’s Republic of China. Business Strategy and the Environment, 17(7), 431–443.

    Article  Google Scholar 

  • Miles, M., & Huberman, A. M. (1994). Qualitative data analysis. Thousand Oaks, CA: Sage Publications.

    Google Scholar 

  • Müller, M., Gomes dos Santos, V., & Seuring, S. (2009). The contribution of environmental and social standards towards ensuring legitimacy in supply chain governance. Journal of Business Ethics, 89(4), 509–523.

    Article  Google Scholar 

  • Neergaard, P., & Pedersen, E. R. (2003). Corporate social behav-iour. Between the rules of the game and the law of the jungle. Journal of Corporate Citizenship, 12, 43–57.

    Article  Google Scholar 

  • Patton, M. Q. (2002). Qualitative research & evaluation methods (3rd ed.). London, UK: Sage Publications.

    Google Scholar 

  • Saunders, M., Lewis, P., & Thornhill, A. (2003). Research meth-ods for business students (3rd ed.). Essex, England: FT Prentice Hall.

    Google Scholar 

  • Simatupang, T. M., & Sridharan, R. (2005). The collaboration in-dex: A measure for supply chain collaboration. International Journal of Physical Distribution & Logistics Management, 35(1), 44–62.

    Article  Google Scholar 

  • Tirole, J. (2006). The theory of corporate finance. Princeton University Press.

    Google Scholar 

  • Voss, C., Tsikriktsis, N., & Frohlich, M. (2002). Case research in operations management. International Journal of Operations & Production Management, 22(2), 195–219.

    Article  Google Scholar 

  • Welford, R., & Frost, S. (2006). Corporate social responsibility in Asian supply chains. Corporate Social Responsibility and Envi-ronmental Management, 13, 166–176.

    Article  Google Scholar 

  • Wong, C. Y., & Boon-itt, S. (2008). The influence of institutional norms and environmental uncertainty on supply chain integration in the Thai automotive industry. International Journal of Production Economics, 115(2), 400–410.

    Article  Google Scholar 

  • Yin, R. K., (2008). Case study research: Design and methods (4th ed.). Sage Publications Inc.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Human Science, European University of Rome, Rome, Italy

    Emanuela Delbufalo

Authors
  1. Emanuela Delbufalo
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Emanuela Delbufalo .

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Delbufalo, E. (2018). Agency Theory and Sustainability in Global Supply Chain. In: Agency Theory and Sustainability in the Global Supply Chain. SpringerBriefs in Business. Springer, Cham. https://doi.org/10.1007/978-3-319-72793-6_3

Download citation

Publish with us

Policies and ethics

Search

Navigation