Global Supply Chain Sustainability: the ...
Type de document :
Autre communication scientifique (congrès sans actes - poster - séminaire...)
Titre :
Global Supply Chain Sustainability: the Role of Non-governmental Enforcement Mechanisms
Auteur(s) :
Limardi, Michela [Auteur]
Recherche Interdisciplinaire en Management et Économie Lab - ULR 7396 [RIME-Lab]
Centre d'économie de la Sorbonne [CES]
Battista, Francesca [Auteur]
Recherche Interdisciplinaire en Management et Économie Lab - ULR 7396 [RIME-Lab]
Centre d'économie de la Sorbonne [CES]
Battista, Francesca [Auteur]
Éditeur :
Centre d'Économie de la Sorbonne (CES - UMR8174)
Date de publication :
2022-06-17
Discipline(s) HAL :
Sciences de l'Homme et Société/Economies et finances
Résumé en anglais : [en]
Non-governmental organizations (NGOs) exert pressure on multinational enterprises (MNE) to force the application of social and environmental standards for subcontractors in developing countries. Non-governmental regulation ...
Lire la suite >Non-governmental organizations (NGOs) exert pressure on multinational enterprises (MNE) to force the application of social and environmental standards for subcontractors in developing countries. Non-governmental regulation relies on voluntary standards defined by the NGOs,or by the MNE themselves. This leads to an uncertainty and social regulation. In this respect, external pressure from NGOs constitutes a reputational risk for the company. MNEs, in turn, try to manage those risks by increasingly monitoring the environmental and social impact of their global suppliers. Two forms of non-governmental enforcement currently prevail: warning (i.e.disclosing information of a violation to the company) versus immediate punishment (i.e. penalizing a company without disclosing information). A theoretical model is developed to determine whether disclosing (or not) information to the MNE about reputational risk is more effective. The results demonstrate that MNEs with a low reputation (or a high degree of out-sourcing) will have a higher incentive to conduct inspections of its global suppliers in a warning regime. Conversely, when MNE visibility is high, disclosing information in advance does not provide additional incentives.Lire moins >
Lire la suite >Non-governmental organizations (NGOs) exert pressure on multinational enterprises (MNE) to force the application of social and environmental standards for subcontractors in developing countries. Non-governmental regulation relies on voluntary standards defined by the NGOs,or by the MNE themselves. This leads to an uncertainty and social regulation. In this respect, external pressure from NGOs constitutes a reputational risk for the company. MNEs, in turn, try to manage those risks by increasingly monitoring the environmental and social impact of their global suppliers. Two forms of non-governmental enforcement currently prevail: warning (i.e.disclosing information of a violation to the company) versus immediate punishment (i.e. penalizing a company without disclosing information). A theoretical model is developed to determine whether disclosing (or not) information to the MNE about reputational risk is more effective. The results demonstrate that MNEs with a low reputation (or a high degree of out-sourcing) will have a higher incentive to conduct inspections of its global suppliers in a warning regime. Conversely, when MNE visibility is high, disclosing information in advance does not provide additional incentives.Lire moins >
Langue :
Anglais
Vulgarisation :
Non
Commentaire :
URL des Documents de travail : https://centredeconomiesorbonne.cnrs.fr/publications/
Source :
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