Mitigating reputational risks in supply chains

Henry L. Petersen · Fred Lemke

65 citations0/0 files storedSupply Chain Management An International Journal

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Supply Chain Resilience and Risk Management Sustainable Supply Chain Management Corporate Identity and Reputation

Abstract

Purpose – The purpose of this paper is to explore reputational risk that are borne in the supply chain and contribute to this contemporary but growing research stream. Design/methodology/approach – First, a theoretical framework is provided to help in the characterisation of reputational risks and how they impact supply chain members that may be multiple tiers away from the manufacturer. Then, semi-structured interviews were conducted with practitioners who were familiar with reputational risks and who were engaging in varying mitigating techniques. Cognitive modelling was utilised to report the findings. Findings – The practitioners in this paper were very familiar with the risks and were active in varying mitigating practices as budgets and resource constraints would allow. The brevity of the risks identified and the significance of specific risks with how they impact a reputation was revealed. Mitigation is an ongoing and haphazard process with very little information available as would be expected with a typical risk management approach. Research limitations/implications – This paper serves to provide practitioners insight into the varying methods used by firms with supply chain members that number in hundreds. Based on our findings, a recommendation was made that utilise corporate social responsibility as a foundation that is proposed to address a number of risks including those related to price, availability and quality. The limits of this work are that it is specific to a select group of practitioners specialised in this area. Although the information is rich, it is not generalisable. Originality/value – This paper makes a significant contribution to the literature by providing insight into the perceptions of practitioners who make decisions on mitigating reputational risks. The results suggest that this is a very new area of management that is striving to find a way to minimise their exposure.

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References

1984Case Study Research: Design and Methods 1985The Reflective Practitioner: How Professionals Think in Action 2007The Social Responsibility of Business Is to Increase Its Profits 1979A Three-Dimensional Conceptual Model of Corporate Performance 1991The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders 1989Asset Stock Accumulation and Sustainability of Competitive Advantage 2003Corporate Social and Financial Performance: A Meta-Analysis 1910How We Think

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