Supplier Evasion of a Buyer’s Audit: Implications for Motivating Supplier Social and Environmental Responsibility

Prominent buyers’ brands have been damaged because their suppliers caused major harm to workers or the environment, e.g., through a deadly factory fire or release of toxic chemicals. How can buyers motivate suppliers to exert greater care to prevent such harm? This paper characterizes a “backfiring condition” under which actions taken by prominent buyers (increasing auditing, publicizing negative audit reports, providing loans to suppliers)...