what are some of the dark sides to inter-organizational trust between buyer and supplier?

Abstract

Media increasingly accuse firms of exploiting suppliers, and these allegations oft result in lurid headlines that threaten the reputations and therefore business organization 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 every bit two divergent perspectives on supplier exploitation, we innovate a distinction of common business practice and unethical supplier exploitation. Since supplier exploitation is based on power, we elucidate several levels of ability equally antecedents and investigate the part of ethical climate every bit a moderator. This study extends Victor and Cullen's (1988) ethical climate matrix co-ordinate 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 sympathize of import antecedents of the phenomenon better.

Notes

1. Based on the idea that exploitation has semantically always the same particular meaning and that moral opinions matter in identifying unethical exploitation, some authors describe both practices as exploitation (Feinberg, 1988; Woods, 1995). Wood (1995) distinguishes innocent exploitation and non-innocent exploitation, and Mayer (2007) adds a wrongful element to distinguish unethical exploitation. Due to its often pejorative connotation, we favor "exploitation" in cases in which unethical exploitation occurs. Hence, we discuss common business do in ethically neutral cases, and refer to the opposite as unethical exploitation.

2. The terms justice and fairness are used interchangeably throughout this manuscript, following scholars such as Andre and Velasquez (1990).

3. Classic agency theory, which shares many assumptions with neoclassical economics, advocates the view that despite maximization of their own utilities (or happiness), actors are not inclined to apply additional morality, and fifty-fifty act immorally, if opportunism is perceived (Bøhren 1998; Fontrodona and Sison 2006).

4. Upstanding egoism is often perceived as a sub-category of consequentialism, promoting the best consequences for the moral agent.

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1. Institute for Supply Concatenation Management – Procurement and Logistics (ISCM), EBS University for Business and Police, Burgstraße five, 65375, Oestrich-Winkel, Federal republic of germany

   Martin C. Schleper & David A. Wuttke

2. Schoolhouse of Concern, Management and Economics, University of Sussex, Jubilee Building 302, Falmer, Brighton, BN1 9SL, U.k.

   Constantin Blome

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Correspondence to Constantin Blome.

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Schleper, M.C., Blome, C. & Wuttke, D.A. The Nighttime Side of Heir-apparent Power: Supplier Exploitation and the Function of Upstanding Climates. J Charabanc Ethics 140, 97–114 (2017). https://doi.org/ten.1007/s10551-015-2681-six

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• Received: 02 October 2013

• Accustomed: 01 May 2015

• Published: fourteen May 2015

• Consequence Date: Jan 2017

• DOI : https://doi.org/ten.1007/s10551-015-2681-6

Keywords

• Economic liberalism
• Ethical climate
• Fairness
• Only prices
• Power
• Supplier exploitation
• Supply concatenation management

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Source: https://link.springer.com/article/10.1007/s10551-015-2681-6

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