Responsibility in the Supply Chain

Abstract

Abstract This article provides a comprehensive overview of one of the main areas where corporate social responsibility issues have impacted upon firms across the globe, namely the supply chain. Although the legal obligations for social and environmental issues are increasingly devolved to suppliers, the role of lead firms in the development of ethical supply chain management (ESCM) has been the subject of considerable debate. This article focuses on two questions which are central to the development of ESCM. First, it looks at stakeholder pressure for ESCM and its implications for the involvement of lead firms in ESCM. Second, it considers the conditions under which lead firms will be able to influence suppliers and implement ESCM. It then reviews the impact of ESCM on social and environmental performance. Finally, it outlines the implications for the development of effective ESCM.

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