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MB1 - SO2: Auditing for sustainability
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Presentations | ||
Examining the Impact of Leniency Bias on Supplier Audits 1North Carolina State University, United States of America; 2Virginia Commonwealth University, United States of America We study the impact of monitor leniency on supplier CSR risk. Using audit data from a global apparel brand, we find that leniency helps to reduce CSR risk. Testing interaction effects with our moderators, we find that greater leniency helps to reduce CSR risk when a facility’s compliance ability is low; when a facility has been audited a small number of times; and when a facility is located in a developing country. Our work provides insight into the relational factors that can influence supplier audits. Multi-tier sustainability incentives: audits and supplier development in a two-stage principal agent problem Technical University of Munich, Germany Manufacturers are increasingly being held responsible for sustainability violations across their whole supply chain. We examine a three-tier supply chain where a manufacturer and its direct supplier incentivize sub-supplier sustainability through auditing and supplier development. We show that the mechanisms are substitutive for the supplier but can be complementary for the manufacturer. Moreover, the manufacturer delegates the effort in case of very low or very high external pressure. Stop auditing and start to care: paradigm shift in assessing and improving supplier sustainability 1INSEAD, France; 2Eindhoven University of Technology, The Netherlands; 3Erasmus University Rotterdam, The Netherlands; 4Schiphol Airport, The Netherlands We propose a conceptual framework for supplier sustainability improvement that we refer to as CARE, based on self-assessments and consisting of Collect, Assess, React, and Enhance phases. CARE is highly scalable, making use of machine learning techniques to understand the link between the general supplier characteristics and their verified sustainability profile, predict the future sustainability levels of even unassessed suppliers, and determine the best plan for improvement. |