Conflict Minerals and Supply Chain Due Diligence: An Exploratory Study of Multi-tier Supply Chains

Hofmann, Hannes; Schleper, Martin C.; Blome, Constantin

doi:10.1007/s10551-015-2963-z

Cited by 145 publications

(185 citation statements)

References 113 publications

(138 reference statements)

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“…Meinlschmidt et al (2018) provided evidence for three of these strategies and suggested that buyers use each one depending on the strengths of contextual factors (e.g., stakeholder salience), whereas Wilhelm et al (2016b) identified three factors—supply chain complexity, tier‐one suppliers' sustainability capability, and sustainability dimension—that determine when and how buyers use such strategies on their sub‐tier suppliers. Grimm et al (2014) identified 14 critical factors that influence the success of sub‐suppliers’ compliance with sustainability standards, whereas Hofmann et al (2018) revealed key enablers and barriers to implementing supply chain due diligence. Brockhaus et al (2013) noted the consequences of mandated implementation of sustainability requirements from powerful to weaker supply chain members.…”

Section: Literature Reviewmentioning

confidence: 99%

On the riskiness of lower‐tier suppliers: Managing sustainability in supply networks

Villena

Gioia

2018

J of Ops Management

187

213

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Although multinational companies (MNCs) have increasingly embraced a sustainability strategy for their own operations, fewer have tried to engage their (tier‐one) suppliers in their sustainability initiatives. It is even rarer that MNCs engage their suppliers' suppliers (lower‐tier suppliers), despite the latter having a higher incidence of violations with more acute environmental and social impacts that can jeopardize the MNCs’ operations and reputation. We conducted inductive research on three supply networks in the automotive, electronics, and consumer product/pharmaceutical industries. We collected data on three leading sustainable MNCs and a subset of 9 tier‐one suppliers and 22 lower‐tier suppliers and complemented that information with data on several NGOs and industry organizations. This study (1) reveals that many lower‐tier suppliers address their environmental and labor issues passively and constitute the riskiest suppliers in a supply network; (2) provides a grounded theoretical framework for managing a sustainable supply network that accounts for multiple network members as well as three sustainability dimensions (the 3Ps: profit, people, and planet); and (3) shows how processes MNCs use to manage their suppliers differ from processes these suppliers use with their own (lower‐tier) suppliers. The study reveals the practices that leading sustainable MNCs use to manage their supply networks and provides important future research directions.

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Section: Literature Reviewmentioning

confidence: 99%

On the riskiness of lower‐tier suppliers: Managing sustainability in supply networks

Villena

Gioia

2018

J of Ops Management

187

213

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“…As such, the depicted SC represents a dynamic and complex system (see also [22,50]) in which tensions arise and need to be managed. In particular, the price driven procurement of raw materials has led to the outsourcing of a large share of upstream activities to low cost countries, in which poor working conditions, forced and child labor as well as low environmental standards represent a major sustainability uncertainty and challenge [13,23,50,51]. This represents a major supply uncertainty for Fairphone, as its value proposition is enhanced sustainability in its SC.…”

Section: Case Studymentioning

confidence: 99%

“…Sustainability 2018, 10, x FOR PEER REVIEW 7 of 20 cost countries, in which poor working conditions, forced and child labor as well as low environmental standards represent a major sustainability uncertainty and challenge [13,23,50,51]. This represents a major supply uncertainty for Fairphone, as its value proposition is enhanced sustainability in its SC.…”

Section: Case Studymentioning

confidence: 99%

Sustainability Tensions in Supply Chains: A Case Study of Paradoxes and Their Management

et al. 2018

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Abstract:The comprehensive coverage of sustainability issues in a supply chain incurs goal conflicts-i.e., sustainability tensions-and is often limited by market characteristics, such as the availability of sustainable materials and services. While the mainstream business is prioritizing economic goals, a number of entrepreneurs are trying to move forward to more sustainable business practices for their own company and their supply chain. Fairphone represents such a case in the electronics industry, which is openly communicating its sustainability efforts and shortcomings. This communication is content-analyzed in this study by applying the theoretical lenses of paradox sustainability tensions and sustainable supply chain management. Findings of this analysis reveal the limitation of sustainability efforts by supply side characteristics, while Fairphone is innovatively using the demand side of its supply chain to drive sustainability. The resulting tensions among both sides are addressed via pro-active and direct supplier and stakeholder engagement by Fairphone at their suppliers' mines and factories. The systematic identification of tensions and practices by which they are addressed is adding to our understanding of sustainability practices and goal conflicts in supply chains.

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“…Moreover, firms that produce semi-conductors face high stakeholder pressure to responsibly source raw material to guarantee conflict free mineral supply chains (Hofmann et al, 2015).…”

Section: Samplingmentioning

confidence: 99%

Tackling the sustainability iceberg

Meinlschmidt

Schleper

Foerstl

2018

IJOPM

Self Cite

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Purpose -This article investigates how buying firms manage their lower tier sustainability management (LTSM) in their supply networks and what contextual factors influence the choice of approaches. As most of the environmental and social burden is caused in lower tiers we use the iceberg analogy.Design/methodology/approach -Findings from 12 case studies and 53 interviews, publicly available and internal firm data are presented. In an abductive research approach, Transaction Cost Economics (TCE) conceptually guides the analytical iteration processes between theory and data.Findings -This study provides eight LTSM approaches grouped into three categories: direct (holistic, product-, region-, and event-specific) indirect (multiplier-, alliance-, and compliance-based) and neglect (tier-1-based). Focal firms choose between these approaches depending on the strength of observed contextual factors (stakeholder salience, structural supply network complexity, product and industry salience, past supply network incidents, socio-economic and cultural distance and lower tier supplier dependency), leading to perceived sustainability risk (PSR).Research limitations/implications -By depicting TCE's theoretical boundaries in predicting LTSM governance modes, the theory is elevated to the supply network level of analysis. Future research should investigate LTSM at the purchasing category level of analysis to compare and contrast PSR profiles for different purchase tasks and to validate and extend the framework.Practical implications -This study serves as a blueprint for the development of firms' LTSM capabilities that suit their unique PSR profiles. It offers knowledge regarding what factors influence these profiles and presents a model that links the effectiveness of different LTSM approaches to resource intensity.Originality/value -This study extends the application of TCE and adds empirically to the literature on multi-tier and sustainable supply chain management.

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Conflict Minerals and Supply Chain Due Diligence: An Exploratory Study of Multi-tier Supply Chains

Cited by 145 publications

References 113 publications

On the riskiness of lower‐tier suppliers: Managing sustainability in supply networks

On the riskiness of lower‐tier suppliers: Managing sustainability in supply networks

Sustainability Tensions in Supply Chains: A Case Study of Paradoxes and Their Management

Tackling the sustainability iceberg

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