Sourcing Under Supplier Responsibility Risk: The Effects of Certification, Audit, and Contingency Payment
Abstract
Companies that source from emerging economies often face supplier responsibility risks, namely, financial and reputational burdens that the companies have to bear when their suppliers’ engagement in noncomplying labor and environmental practices becomes public. To mitigate such risks, companies can invest in screening mechanisms and design incentive schemes in sourcing contracts. Common mitigation instruments include supplier certification,...
Paper Details
Title
Sourcing Under Supplier Responsibility Risk: The Effects of Certification, Audit, and Contingency Payment
Published Date
Sep 1, 2017
Journal
Volume
63
Issue
9
Pages
2795 - 2812
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Notes
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