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Logist. Res. (2013) 6:187–216 DOI 10.1007/s12159-013-0109-1 OR IGINAL PAPER Toward a standardized supplier code of ethics: development of a design concept based on diffusion of innovation theory Martin C. Schleper Christian Busse Received: 31 December 2012 / Accepted: 25 September 2013 / Published online: 11 October 2013 Springer-Verlag Berlin Heidelberg 2013 Abstract Supplier codes of ethics have become important informative about the content of a standardized supplier instruments for ethical supplier management. They capac- code of ethics, and we propose multiple effectiveness- and itate firms to govern numerous supplier relationships diffusion-facilitating mechanisms as additional components simultaneously toward ethical business conduct. Since in the overall design concept. With stakeholders’ further many actors nowadays pursue the goal of ethical supplier support, the envisioned standard is expected to foster management, a cascade of codes has emerged. However, businesses’ corporate social performances around the globe. this plurality poses multiple problems on its own account, such as lacking effectiveness of some of these codes, Keywords Code of ethics Corporate social restrictions on the development of universally accepted responsibility Diffusion of innovation theory ethical standards, and greenwashing. It also creates opera- Multi-method research Content analysis Design tional difficulties and unnecessary procedural costs for firms science and is thus inefficient. The aggregated amount of issues suggests the development of a standardized supplier code of Abbreviations ethics as a remedy. Based on diffusion of innovation theory CEO Chief executive officer as theoretical lense and as conceptual support, we employ a CMM Capability maturity model multi-method research design to develop a design concept CPO Chief procurement officer for such a standard. We begin with a content analysis of CSP Corporate social performance relevant scientific literature on content, adoption, and CSR Corporate social responsibility effectiveness of codes of ethics, in which we also study DOI Diffusion of innovation theory numerous extant codes and initiatives. It leads to six prop- NGO Non-governmental organization ositions on key success factors of a standardized supplier SCGC Supply chain governance code code of ethics. We then amend a design science approach to SCoE Supplier code of ethics develop a design concept for such a standard that complies with these requirements, with the support of corporate experts from Germany, China, and India. Our results are 1 Introduction M. C. Schleper International or global regimes and regulations that are Institute for Supply Chain Management—Procurement and capable of resolving major environmental and social Logistics (ISCM), EBS University for Business and Law, problems do not yet exist [26, 108]. Hence, stakeholders Konrad-Adenauer-Ring 15, 65187 Wiesbaden, Germany have begun to expect firms to fill the resulting gaps [63]. In C. Busse (&) consequence, the concept of corporate social responsibility Chair of Logistics Management, Swiss Federal Institute of (CSR) has gained much attention worldwide and evolved Technology Zurich, Weinbergstrasse 56/58, 8092 Zurich, into a pivotal source of legitimacy for business activities Switzerland [14]. CSR has been defined as ‘‘a concept whereby e-mail: cbusse@ethz.ch 123 188 Logist. Res. (2013) 6:187–216 companies integrate social and environmental concerns in subsumes the previously discussed horizontal, vertical, and their business operations and in their interaction with their spatial complexity dimensions [20], simultaneously causes stakeholders on a voluntary basis’’ [35, p. 6]. As such, it a need for ethical supplier management and a difficulty to deals with all ethical responsibilities of firms toward actually succeed in it. Because it is impossible to manage society that transcend legal obligations [84], for example all supplier relationships individually, firms are increas- social, environmental, and human rights issues, as well as ingly prescribing codes of ethics to all of their suppliers. problems such as corruption, bribery, or product safety. These SCoE are instruments to effectively govern multiple To comply with these ethical responsibilities, almost all or even vast numbers of dyadic supplier relationships major globally operating firms nowadays use codes of simultaneously in order to prevent perpetrations [21]. ethics [60, 71]. A code of ethics is defined as a document Since numerous firms and institutional actors, such as consisting of a set of principles dedicated to guide behavior non-governmental organizations (NGOs), pursue the goal of particular actors on certain issues [cp. 62, 69, 107]. of ethical supplier management in parallel, a cascade of Firms use these codes to guide their employees’ behavior different SCoE with different purposes and initiators has toward each other and toward external stakeholders. With emerged to date [97]. Given that not all firms have par- respect to the latter purpose, codes of ethics can thus be ticular expertise on CSR in general or on the most pressing understood as contracts between an organization and ethical problems of the countries from which they source in society [94] aiming at the above-stated ethical responsi- particular, it is evident that the effectiveness of extant bilities. By using codes of ethics, firms strive to manage and SCoE varies, with some being less advanced than others. improve their corporate social performance (CSP), under- Absence of unanimously accepted SCoE contents hinders stood as ‘‘a business organization’s configuration of principles the development of universally accepted CSR standards. of social responsibility, processes of social responsiveness and Further, intransparency related to SCoE effectiveness and policies, programs, and observable outcomes as they relate to misfits between multiple SCoE open up opportunities for the firm’s societal relationships’’ [131,p.693]. greenwashing and free riding. Furthermore, the plurality of Increasingly, however, stakeholders also expect firms to codes that suppliers might have to apply in parallel poses accept responsibility for wrongdoings at suppliers’ sites major handling difficulties and consequential procedural [5], since firms have the potential to directly influence the costs [59, 94, 113]. The aggregated amount of problems CSP of their suppliers, for example through supplier stemming from the plurality of SCoE suggests the devel- selection and product design decisions [65, 85]. Deficits in opment of a standardized SCoE as a remedy. We hence- suppliers’ CSP have the potential to cause negative pub- forth refer to this envisioned standard as Supply Chain licity, reputational damage, or even litigation for buying Governance Code (SCGC). firms and must therefore be characterized as risks [15, 50]. According to Gilbert and Rasche [37], a standardized With modern communication technology, knowledge about CSR initiative, such as a SCGC, potentially offers many suppliers’ unethical behavior also spreads more easily than advantages to society, firms, and shareholders. We con- it used to [40] so that the management of suppliers with jecture that the SCGC could influence firms’ behavior respect to ethical issues becomes ever more important. toward more ethical behavior through multiple mediating However, globalization and division of labor pose major mechanisms: If a SCGC is observable (in a sense that its challenges for buying firms in this respect. The efficient processes and results are objectively traceable and trans- transfer of goods, money, and information through supply parent), if it is thoroughly audited and effectively enforced, chains often requires many interorganizational relation- it is expected to eliminate greenwashing. In addition, if ships [70]. Due to high levels of external value added in firms can refer to the SCGC as a brand-like label that many industries [16], many firms tend to have very large distinguishes them from their competitors with regard to numbers of direct and indirect suppliers. For example, one their CSP, CSR-related competition might emerge which of the firms that participated in this research has approxi- would raise the overall CSP level among firms. Further, if mately 80,000 direct suppliers. The resulting complexity it actually became a widespread standard, a SCGC could makes the fulfillment of all stakeholder requests extraor- increase awareness for CSR and other CSR-related initia- dinarily difficult and virtually impossible at the individual tives. Next, since shareholders increasingly show interest in supplier relationship level. Moreover, CSR standards investing their money with regard to CSR criteria [53], a diverge to a great extent among regions and countries [32]. global label such as the SCGC could complement extant With global sourcing and global supply chains being firmly ratings in increasing observability to shareholders and thus established in corporate practice [88], buying firms may ease financing for SCGC adopters. therefore have to manage major ethical problems which they are not familiar with from their domestic country. We use this label to refer to a standardzed supplier code of ethics Overall, structural supply chain complexity, which which is yet to be created. 123 Logist. Res. (2013) 6:187–216 189 Given the amount of problems stemming from the plu- part, we review the results of the literature review from the rality of extant SCoE, as well as the potential benefits of a perspective of DOI. This leads to six propositions of SCGC, the aspired contribution of this paper is to present a requirements that an effective SCGC has to fulfill. Beyond first design concept of a SCGC. We specifically regard the the immediate purpose of our research, our analysis also following three research questions as essential: (1) Which demonstrates the usefulness of applying DOI to research on contents can reasonably be covered by a SCGC? (2) Which codes of ethics. mechanisms could ease the adoption of a SCGC by firms The following section depicts empirical insights on the and its roll-out into business practice? (3) How can a su- key success factors of the SCGC design. These insights are praorganizational SCoE become an effective standard, and derived from interviewing corporate experts and from which barriers have to be overcome to achieve this? conducting workshops with them, with the aim of modi- We chose diffusion of innovation theory (DOI) as the fying or validating the findings gained from the scientific theoretical lense through which we regard our research literature. The section ensures that the derived SCGC problem as we conceive the development of a SCGC as a concept is not only theoretically informed, but also prac- supply chain innovation [6]. Arlbjørn et al. [6, p. 8] define a tically feasible. supply chain innovation as ‘‘a change (incremental or radi- The penultimate section of the paper depicts our pro- cal) within the supply chain network, supply chain technol- posed SCGC design concept. It complies with all previ- ogy, or supply chain processes (or combinations of these) ously identified requirements. The concluding section that can take place in a company function, within a company, includes a brief summary, reflects on limitations, and in an industry, or in a supply chain in order to enhance new depicts avenues for future development of the SCGC. value creation for the stakeholder.’’ DOI is highly informa- tive to the development of our innovative SCGC design and therefore offers a suitable conceptual background to our 2 Diffusion of innovation theory research. DOI is presented in the following section, in which we consider antecedents of innovation adoption by firms and Diffusion of innovation theory was established and coined also regard the temporal diffusion process of an innovation, by Everett M. Rogers in 1962 and has been continuously to inform our research design. refined until today. An innovation, according to Rogers Since the SCGC does not yet exist, but is envisioned [100, p. 12], is ‘‘an idea, practice, or object that is per- here as a new artificial tool for corporate practice, we ceived as new by an individual or other unit of adoption.’’ cannot derive an answer to our research questions solely Accordingly, adoption is the process whereby individuals from empirical investigations of current business practice. or firms evolve from getting to know an innovation through being interested in it, deciding to use it and finally imple- We require a research methodology that is actually capable of creating a novel concept. However, to develop a new menting it in full in their firm [100]. Diffusion refers to concept in a rigorous manner, we also have to rely on ‘‘the process in which an innovation is communicated extant theory and literature. That is why we chose a multi- through certain channels over time among the members of method research design, including a content analysis of a social system’’ [100, p. 5] While adoption relates to the extant scientific literature, as well as a design science process which an individual adopter passes through and approach. This multi-method research design is explained thus uses the adopter as the unit of analysis, diffusion thus in depth in the section that follows the presentation of DOI, considers the innovation as the unit of analysis and refers to together with the content analysis and the design science the process of its spread through the population of all methodology. potential adopters. A subsequent literature review serves as the point of Diffusion of innovation theory serves both as a theo- departure to tackle the overall problems related to content, retical lense through which we view our research problem adoption, and effectiveness of the SCGC, as expressed in and as a design aid for the development and institutional- our research questions, and to anchor our research in the ization of a standardized SCoE. It is worth highlighting relevant discourse. The first part deals with the content side that, although DOI relates most directly to our second of the SCGC. Therein, we depict the results of our content research question on SCGC adoption, it will later on also analyses of previous scientific research and of existing be possible to found our content- and effectiveness-related supraorganizational codes. The review of supraorganiza- research questions on DOI. tional codes serves to anticipate and back up potential content inventory for a SCGC. The second part on adoption 2.1 Antecedents of adoption reflects factors which foster the adoption of the SCGC in firms and its overall diffusion. The last part refers to factors One main stream of research in DOI is concerned with the that foster the effectiveness of codes of ethics. In a fourth question, why some innovations diffuse faster than others 123 190 Logist. Res. (2013) 6:187–216 and what reasons cause deviation in the rate of adoption, could be ensured by integrating existing established stan- defined as ‘‘the relative speed with which an innovation is dards and codes, which underpins the need to review these, adopted by potential units within a social system’’ [101, carefully. Furthermore, the contents and processes provided p. 28]. Rogers [100] identified five innovation-related by the SCGC have to be state of the art in the field of CSR. qualities that determine the rate of adoption: relative The aspired nature of the SCGC as a standardized SCoE advantage, compatibility, trialability, observability, and moreover ensures cross-organizational compatibility. complexity. These qualities are innovation-focused, Trialability refers to the field work phase, in which an meaning that the diffusion process is not scrutinized with adopter is able to test the innovation and to apply it in a regard to potential adopters’ characteristics (which are controlled and limited manner, for example in a pilot reflected by firms’ innovativeness). Rather, the character- implementation, thereby learning the particular advantages istics refer to perceptions of the innovation itself [86]. and building trust into new techniques and processes. Thus, depending on the degree to which potential adopters Furthermore, trialability assures that new users of the perceive the innovation to exhibit the above qualities (or innovation can get to know it by practical experience. The not, with regard to the factor complexity), the rate of more complex the innovation is, the more newness it car- adoption is likely to increase. Rogers [100] found that ries and the more important is its trialability. Given that, between 49 and 87 % of the variance in different rates of typically, any firm only has one SCoE in place for its entire adoption can be explained by these five factors, with rel- supplier base, initial pilot implementations are unlikely, in ative advantage as the strongest predictor. Other studies our context, so that trialability matters relatively little. identified complexity and compatibility as the second and However, the design concept should make sure that it does third most important factors [e.g., 8, 22, 24]. not create any unnecessary entry or exit barriers for Hence, together these five factors provide insights into potential SCGC adopters. designing innovations in order to accelerate their diffusion. Observability denotes how transparent and accessible As Rogers [100, p. 105] states, ‘‘the diffusion approach the effects of an innovation are to others. New adopters that promises a means (…) [to those who] seek to get the sci- use an innovation might attract additional adopters that entific findings utilized and/or (…) desire to use the could observe the benefits of the innovation. Thus, the research results (…) to solve a particular social problem or higher the perceived observability of an innovation is, the to fulfill a need.’’ Therefore, by shaping an innovation that faster the innovation is supposed to diffuse among potential is supposed to diffuse according to these five aspects, its adopters. The SCGC concept could facilitate observability spread can be facilitated and accelerated. We shall discuss by having the entire initiative, its efforts, and CSP-related each factor in turn. results made public. Moreover, new SCGC adopters would presumably be willing to declare their participation in the Relative advantage means first of all that an innovation benefits from higher acceptance if its potential adopters initiative in public. perceive it to be superior to its alternatives and especially High perceived complexity of an innovation means that to the status quo which it is supposed to displace. However, potential adopters find it rather difficult to understand and this relative advantage does not necessarily have to be of use the innovation so that the rate of adoption of an economical nature. Although innovations are usually more innovation decreases, contrarily to the previous effects. By efficient than their predecessors, with regard to technolo- providing simple and straightforward mechanisms and gies and new processes, and although advantages are often rules, the proposed SCGC concept could be designed in related to higher productivity, there might be other non- such a manner that is easy to comprehend for adopters. economic benefits an innovation brings about, such as These initial five factors were mostly confirmed and convenience or satisfaction. Referred to our purposes, this further elaborated by different studies [e.g., 58, 118]. In means that the SCGC design concept must be perceived as their purpose to create valid and reliable scales for mea- an innovation that is relatively advantageous to (a) absence suring Rogers’ [100] five characteristics, Moore and Ben- of a SCoE and (b) a self-developed SCoE. In the proposed basat [86] identified another quality useful for our concept, the SCGC will achieve this factor by providing purposes, namely ‘‘image.’’ Defined as ‘‘the degree to visible advantages for its adopters, such as,, low procedural which use of an innovation is perceived to enhance one’s costs. image or status in one’s social system’’ [86, p. 195], there The perceived compatibility of an innovation describes have been vivid discussions about the independence of this how well it fits into the existing context of values, coexis- quality from relative advantage [e.g., 51]. We incorporate ting technologies, past experiences, and demands of image as an additional sixth factor, as many consecutive adopters. The higher the perceived compatibility of the studies conceived image as an independent factor [e.g., 86, innovation, the more likely is its spread among potential 118, 125], and as Rogers [100, p. 230] himself acknowl- adopting units. In the SCGC design concept, compatibility edges that ‘‘one motivation for many individuals to adopt 123 Logist. Res. (2013) 6:187–216 191 an innovation is the desire to gain social status.’’ Stake- at this stadium a critical mass is achieved. The critical mass holders increasingly demand firms to be socially respon- describes the point in time, when enough adopters are sible and grant legitimacy to those firms that behave present and diffusion becomes self-sustaining [100]. according to their expectations [116]. In our context, A SCGC as we conceive it is of little utility for a single stakeholders can thus be expected to attach importance to firm. Due to its interactiveness, all its advantages become the adoption of the SCGC so that image is clearly a rele- relevant only after enough other firms have also adopted it. vant factor beside the relative advantage to the adopting Hence, a critical mass must be achieved that uses such a firm, itself. The expected image effect of adopting a SCGC standard, because otherwise, single adopters do not benefit will therefore determine the rate of adoption and thus the enough from the innovation. However, if the critical mass success of the SCGC. The importance of the image factor of adopters is achieved, each previous and all later adopters means that (a) as a presumably positively evaluated ini- of the SCGC will profit by its further diffusion. Further- tiative, the SCGC stands a good chance of obtaining more, from the discussion above it is reasonable to con- positive image effects and that (b) the proposed SCGC jecture that firms with higher innovativeness are inclined to design concept should incorporate a feature or mechanism adopt an innovation such as the SCGC to higher degrees to further foster the initiative. than those firms that are usually skeptical, such as the late Against this background and with regard to our research majority or laggards. While some firms that are early questions, DOI perfectly suits our purpose to develop a adopters and pioneers in the field of CSR will certainly be SCGC design concept that is able to yield an effective more active and elaborated in their means of adoption, standard in a sense that its adoption and roll-out into others will be less proactive. Thus, a SCGC design concept business practice is ensured. Thus, we will continuously has to consider the variance in innovativeness of firms and refer to the established diffusion antecedents in the in their actual CSP, by incorporating a dynamic perspective remainder of our study in order to increase the likelihood of for developing firms according to these aspects. adoption and diffusion of our SCGC design concept. 2.2 A temporal perspective on diffusion 3 Methodology Different firms adopt innovations at different points of time, 3.1 The rationale for combining multiple for two reasons. First, each of the previously discussed methodologies in the research design innovation-related adoption antecedents (relative advan- tage, compatibility, trialability, observability, complexity, The purpose of this research—the creation of a SCGC design concept—transcends the aptitude of empirical research and image) may vary from firm to firm. For instance, firms which are located downstream the supply chain and which methodologies since it necessitates the creation of an artifi- are closer to end consumers, are relatively more in the focus cial concept which does not yet exist and thus cannot be of public interest and their stakeholders than upstream firms observed. Therefore, having identified DOI as an adequate [50]. Hence, the relative importance of the image effect will theoretical lense for our research, we required an innovative presumably be larger to these firms than to others, leading methodology which can actually create such an artifact. them to adopt the SGCG earlier. Second, according to However, an artifact-creating process should not be carried Rogers [100], adopters differ systematically with regard to out without taking into account the accumulated scientific their own innovativeness. Defined as ‘‘the degree to which knowledge that already exists about (extant) codes of ethics (…) a unit of adoption is relatively earlier in adopting new and SCoE. In fact, only a rigorous scientific proceeding ideas than other members of a system’’ [100, p. 267], stands a chance to generate a SCGC design concept that is innovativeness describes the adoption affinity of firms. acceptable to the numerous parties with interests in SCoE. Accordingly adopters can be categorized into innovators, Consequentially, two distinct methodologies were employed early adopters, early majority firms, late majority firms, and and integrated with each other: a content analysis [cp. 72]of laggards, based on their innovativeness. extant research, which serves to integrate the extant accu- While ‘‘innovators’’ launch an innovation, ‘‘early mulated scientific knowledge related to our research aim, adopters’’ are often highly respected firms and opinion and a design science approach [cp. 49, 122] which created the leaders. By adopting the innovation they yield a lighthouse SCGC concept itself, based on the results of the content effect for further adopters (the so-called ‘‘early majority’’). analysis, the involvement of 34 managers from firms in The early majority is still more innovative than the average Germany, China and India and the usage of abductive logic. unit of adoption. Rogers [100] describes the early majority The research process is depicted in an overview in Table 1, to be usually about one-third of the total amount of together with all the means that we employed to ensure rigor, adopters of an innovation. Hence, if an innovation arrives in each phase of the research process. 123 192 Logist. Res. (2013) 6:187–216 Table 1 Research process overview Phase 1. Research design 2. Content analysis 2a. Sampling of scientific 2b. Sampling of codes 2c. Categorization publications and standards Major Choice of Diffusion of Innovation Theory Initial focused key word Selection of all those Categorization of results into features (DOI) as an adequate theoretical lense search in clearly related codes that were already (1) content-, (2) adoption-, journals to get a working examined in scientific and (3) effectiveness- Choice of multi-method approach to (1) initial sample papers related knowledge take extant scientific knowledge into account, (2) take extant practical Focus on papers since Selection of any code or Additional qualitative context-specific knowledge into account, 1990 to ensure timeliness standard mentioned in grouping of content within and (3) develop an artificial new concept interviews and each category Subsequent snowball workshops search to ensure (de Counting of principles facto) completeness Review of 62 different pertaining to corporate, regional, environmental and social Detailed analysis of 166 business, and issues articles international codes of Qualitative comparison of Inclusion of articles with ethics the wording of the relevant novel insights In-depth analysis of 15 principles for each topic related to the research widely used questions supraorganizational codes Phase 2. Content analysis 3. Design science 2d. Synthesis of 3a. Sampling of organizations and 3b. Interaction with 3c. Concept development propositions individuals corporate experts Major features Assessment of the content Firms with ethical problems in Most time-intensive phase Compliance with all analysis results of each their supply chains and with previously analyzed Critical assessment and category against the experience with codes of ethics requirements, as validation of research objectives explicated in the Challenges arising from both (preliminary) content propositions Usage of abductive logic to social and environ-mental analysis and results determine requirements problems Compliance with additional Anticipation of design that the envisioned SCGC empirical findings Downstream and upstream firms concept features would have to fulfill Iterative, heuristical and ‘‘Western’’ and ‘‘Eastern’’ Interviews to understand Conclusion of propositions feedback-oriented process perspective: Data collection in the respondents’ pristine that synthesize these Germany, China and India views Usage of abductive logic requirements Corporate experts Recording of nearly all Continuous critical interviews discussion of emerging Final sample comprises 20 firms, concept as well as 34 knowledgeable Workshops with critical and individuals open discussions to Modular solution jointly tackle specific Future refinements and problems amendments will still be necessary The research process is depicted in a quasi-linear fashion only for the sake of readability 3.2 Content analysis (business) ethics, codes of conduct, codes of business, corporate (ethics) statement, standard(s), and (corporate) Content analysis is increasingly used within logistics and guideline(s). Initially, we focused on academic journals supply chain management [e.g., 13, 81], as well as business that are known for publishing literature concerned with ethics [e.g., 17, 46] to synthesize and integrate the content codes of ethics and standards: Journal of Business Ethics, of large amounts of data in a systematic manner. It is Business Ethics Quarterly, Business, Strategy and the typically conducted as a two-step procedure of sampling Environment, and Business and Society. We focused on and categorization [e.g., 13, 81]. articles published since 1990, for the following three rea- We began our sampling process with a key word search sons: First, according to Kolk et al. [69] most codes did not in the databases EBSCO and Science Direct, searching for exist before the late 1970s. Scholarly investigation started scientific articles that included terms such as codes of even later than that. Second, since knowledge in scientific 123 Logist. Res. (2013) 6:187–216 193 journals accumulates over time, we could assume findings Table 2 Overview of analyzed supraorganizational codes from before 1990 to be conserved in newer publications Name of the Document Date Addressees Scope and thus intentionally excluded older research. Third, of decades of increasing globalization and of rising stake- issue holder awareness have changed firms’ stances toward CSR The OECD Guidelines for 1976 General General so drastically that any empirical research published before Multinational Enterprises 1990 does likely not reflect corporate reality, any more. The Ceres Principles 1989 General Environmental Having compiled a working initial sample of papers, we Caux Roundtable 1994 General General iteratively screened titles, abstracts and entire papers to Principles for Responsible Business exclude papers based on rigor and relevance criteria. We amended a snowball sampling process by systematically FLA Workplace Code of 1997 General Social Conduct investigating all references of articles we had found so far SA8000 1997 General Social in order to add further important sources. We only stopped UN Global Compact 1999 General General our search when we reached saturation, which means that Business Social 2002 General Social no further important articles were identified. In total we Compliance Initiative found 166 relevant articles. (BSCI) Code of Conduct Since our research is firmly routed not only in science, The International Council 2002 Toy industry Social but also in the real world of corporate practice, we also of Toy Industries (ICTI) undertook a content analysis of extant codes and standards. Code of Business Practices This allowed us gain an appropriate overview of the con- Electronic Industry 2004 Electronic General tents and particular principles which are currently included Citizenship Coalition in actual codes. Here, our sampling was as follows: We (EICC) Electronic regarded all those codes that were already examined in Industry Code of scientific papers (e.g., Business for Social Compliance Conduct Initiative [31]; ISO 140001 [25]; UN Global Compact China Social Compliance 2005 Chinese Social for Textile and Apparel textile and [99]). We then amended all those codes and standards Industry Principles and apparel which were mentioned in interviews, workshops and Guidelines industry informal discussions with company representatives. Thus, Roundtable on Sustainable 2007 Palm oil General we can be reasonable sure that we covered the most Palm Oil Principles and industry important extant codes. Overall, we reviewed 62 different Criteria for Sustainable Palm Oil Production corporate, regional, business, and international codes of Principles and Standards of 2008 General General ethics and conducted an in-depth analysis of 15 widely Ethical Supply used supraorganizational codes (cp. Table 2). Of these, ten Management (ISM) are industry-independent and address generally any firm Ethical Trading Initiative 2009 General Social worldwide, while the other five are of industry-specific (ETI) Base Code scope. Similar to the SCGC, supraorganizational codes Global Social Compliance 2010 General Social attempt to create standardized principles which are of Program (GSCP) Reference Code general importance for firms in terms of CSR. Subsequently, the content of the sampled articles was 4C Association Code of 2010 Coffee General Conduct industry categorized with respect to our research questions. Thus, we used knowledge on code content, on code adoption and on code effectiveness as categories. Almost all of the Last, we assessed the content analysis results of each articles could be classified according to at least one of the categories. For each of the three categories we further category against our research objectives. We used abduc- tive logic to determine all requirements that the envisioned considered findings that referred to the same issue jointly, to highlight agreements and disagreements within extant SCGC would have to fulfill. Those requirements are syn- thesized in the form of propositions. literature. With respect to extant codes, our focus of attention made us count principles pertaining to environ- 3.3 Design science mental and social issues, to assess their relative importance in the past. Moreover, we also compared the wording of the Design science is a highly innovative research methodol- principles for each topic in a qualitative manner. The cat- egorized knowledge from extant codes is also depicted in ogy, which has its intellectual roots in the seminal work of the contents section in the results chapter. Simon [109, 110]. Since we are aware of only one previous 123 194 Logist. Res. (2013) 6:187–216 application within business ethics research [82] and of Table 3 Participating organizations (firms are headquartered in Germany, unless otherwise specified) none in logistics and supply chain management, it is a b deemed appropriate to depict our methodology in rather Organization Description W I much detail. In other fields, for example in information A A is a large globally active management x systems research, design science is more established [cp. consulting firm which belongs to the e.g., 1, 3, 49]. Since multiple insightful and instructive leading strategy consultancies worldwide prescriptions for the wider fields of business and manage- B B is a mid-sized international consultancy x ment research have appeared in recent years [52, 92, 95, primarily specializing in supply chain management 122, 123], more frequent future usage within our domain C C is a mid-sized management consultancy xx appears likely and promising, giving the potential out- that is specialized on the development of comes of the methodology. internationalization strategies, in particular The most important feature of design science is that it with regard to Asia. C is a joint venture of enables researchers to actually create artificial phenomena, B and another firm rather than to concentrate only on the ones that exist D D is a large transportation organization with x its focus of operations in the German state already [52]. It is thus directed at problem solving, but not of Hesse at explanation or prediction, and is hence pragmatic in E E is a large internationally operative xx nature [52]. Design is an established process within prag- telecommunications company matic and artifact-creating sciences, such as engineering F F is a large logistics service provider which xx and architecture [52, 83]. The nature of design processes is mostly active in Germany and of design science features flexibility, orientation G G is a large generic drug subsidiary of a xx toward indeterminate and wicked problems and toward a large multi-national pharmaceutical purpose, nonlinear, but project-based workflows, usage of company abductive logic, creativity, and awareness of system-wide H H is a large apparel manufacturer and among x the leading companies in this industry consequences of decisions [10, 11, 27]. Due to the com- I I is a large apparel manufacturer and among x plexity of the addressed research problems and its fuzzy the leading companies in this industry nature, design science necessitates close collaboration J J is a large energy and natural gas public x among researchers and actors in the real world [110]. utility company Since we envision the SCGC as a voluntary instrument K K is a large Swedish power company that xx (we do not seek to design new regulations) to be adopted operates within Europe by firms, firms are the most important class of actors to this L L is a large global auditing, product testing x research. Thus, we worked collaboratively with multiple and certification company headquartered in UK firms and their managers. The first and most important sampling criterion for firms was that all companies were M M is one of the leading mail order xx companies in Europe actually facing ethical problems in their supply chains and N N is a large logistics service provider x x had some experience with SCoE. We thus made sure that O O is a large Swiss chemical company mainly xx no organization participated that was not troubled by these focusing on specialty chemicals issues. Moreover, all participating organizations that spent P P is a business unit of a large multinational x time on supporting our research also faced some opportu- engineering and electronics company. P is nity costs, a mechanism that ensured that only suitable specialized in power tools firms participated. Second, we made sure that the sample Q Q is a business unit of a large multinational x contained both firms that faced ethical supply chain chal- conglomerate company. Q is a supplier to the healthcare industry lenges arising from social problems (such as firms H and I, R R is a large worldwide operating company in x cp. Table 3), as well as firms that were confronted with the chemical business with sites in Europe, ethical challenges arising from environmental problems Asia, and America (such as firms K and O). Third, we regarded both firms that S S was a large machine manufacturer. S was x operate far downstream, i.e., firms that are directly con- taken over shortly after the interview and fronted with end customers’ expectations (such as firms D is now controlled by a large US company and E), as well as firms that operate far upstream (such as T T is a large semiconductor manufacturer x firms P and S). Fourth, it was apparent to us that actors in a b Workshops; Interviews both developed and developing economies could serve as behave ethically because their ethical impacts are very potential adopters of a SCGC and would likely contribute differing perspectives to the issues at stake. For instance, high; firms in developing economies are often suppliers firms in developed countries might be highly motivated to which face CSR challenges; employees and local 123 Logist. Res. (2013) 6:187–216 195 communities in developing economies are parties who are Table 4 continued supposed to come into contact with serious CSR-related a b Organi- Partici- Hierarchical Responsibility W I problems more frequently; and so on. To include these zation pant position multiple perspectives and to avoid a biased Western view, L L1 Middle Director Global Project and 1 we conducted interviews and workshops not only in Ger- Management Service Management many (e.g., with E1 and H1, cp. Table 4), but also in China M M1 Top Chief Operating Officer 1 1 and India (e.g., with P1 and R1). In total, 20 mostly large Management and internationally operating firms from diverse industries M2 Middle Corporate Communications 32 Management and Corporate were included in our study (cp. Table 3). Responsibility For firms, the research problem is interfunctional, as N N1 Top Director Corporate 1 well as multifold and complex. Thus, diverse corporate Management Development and Public functions, such as purchasing and supply management, Relations logistics, marketing, and public relations, had to be N2 Middle Head of Staff Unit Finance 21 Management and Operations involved. In total, 34 individual managers participated who N3 Middle Tender Manager 1 mostly hold middle-management or top-management Management positions. The variety of these functions covered the per- O O1 Middle Director Environmental 1 tinent issues of a SCGC appropriately (cp. Table 4). Management Safety and Health O2 Middle Global Senior Procurement 52 Management Manager Table 4 Individual participant overview P P1 Staff/Officials Purchasing Manager 1 a b Organi- Partici- Hierarchical Responsibility W I Q Q1 Top Director and Chief 1 zation pant position Management Procurement Officer Asia and Australia A A1 Middle Managing Partner 2 R R1 Top President and Managing 1 Management Management Director A2 Middle Partner 2 S S1 Middle Senior Manager—Quality 1 Management Management Assurance B B1 Middle Project Manager 5 S2 Staff/Officials Purchasing Manager 1 Management T T1 Top Global Head of Purchasing 1 C C1 Top Executive Director and 1 Management Management Partner Total 15 28 C2 Top Executive Director and 1 a b c Management Partner Participation in workshop(s); Participation in interviews; Some work- C3 Official/Staff Consultant 1 shops were held with more than one participant C4 Official/Staff Market Intelligence Manager 2 D D1 Official/Staff Marketing/Communications 4 Our interaction with corporate experts was the most E E1 Top Chief Procurement Officer 1 time-intensive phase of our research. It began in 2010 and Management is still going on, today. The results of the content analysis E2 Middle Corporate Procurement 31 phase served as a starting point to guide our collaboration. Management Strategy Our first aim in this interaction was to critically assess and E3 Middle Corporate Procurement 31 validate those (preliminary) results. All insights from the Management Strategy content analysis were continuously open to feedback from F F1 Top Executive Director Supply 52 Management Chain Services company representatives. Second, we anticipated specific F2 Middle Customer Lead Buyer 4 design concept features, together with corporate managers. Management We applied classical empirical instruments, such as open or G G1 Top Global Head Sourcing and 22 semi-structured interviews, as well as collaborative tools, Management Purchasing such as workshops, within our design science framework. H H1 Top Chief Supply Chain Officer 1 The interviews were particularly instrumental in under- Management standing the respondents’ pristine views (nearly all of them I I1 Top Global Director Social and 1 Management Environmental Affairs were also recorded), whereas the specific advantage of J J1 Top Managing Director and 1 workshops was to critically and openly discuss any specific Management Chief Procurement Officer K K1 Staff/Officials Materials Management 2 There was no need to employ specific coding procedures. The reason is that we did not study causal relationships between variables K2 Staff/Officials Materials Management 1 1 (as one would usually have done in empirical case study research, for K3 Staff/Officials Materials Management 1 1 example), but sought to design the SCGC as a new artifact. 123 196 Logist. Res. (2013) 6:187–216 design problems. The development of the design concept As the literature-based review reveals, CSR-related was a continuously iterative process and feedback from issues exist, which clearly must be addressed in a SCGC practitioners was discussed whenever the opportunity because they are typical content of established codes and arose. Hence, together with them, we framed CSR issues in appear to be virtually indisputable, such as child labor, firms’ upstream supply chains, especially in developing forced labor, bribery and quality issues. These CSR core economies, and stakeholder demands of buying companies contents should reasonably be included since the SCGC is in developing economies as part of the design problem and intended to be a general standard. envisioned the SCGC as a remedy instrument. We also To further elaborate on the content side of codes of ethics, took the (publicly well-known or anticipated) positions of besides reviewing previous research, a review of supraor- non-corporate actors into account to maximize the chances ganizational codes was conducted in order to back up the of success for the SCGC in the real world. above-stated findings and to apply them to our particular Last, we developed the actual design concept. It had to purpose in the subsequent passage. An overview of the comply with all previously analyzed requirements, as results is illustrated in Table 5. Although only few codes explicated in the propositions, as well as with important state the same concrete principles, the set of topics and additional findings from our interaction with corporate categories of principles is rather homogeneous. There experts. The design concept development process was appear to be differences in wording rather than in substance. iterative, heuristical and feedback-oriented. We frequently In both the social and the environmental dimensions, a sig- used abductive logic, and the emerging concept was con- nificant core of content appears to exist. For instance, the tinuously discussed critically. The developed concept is seven most frequently stated social principles reach relative comprised of multiple modules. It is clear that future prominence values of between 64 % (working hours) and refinements and amendments will still be necessary. We 93 % (non-discrimination), whereas relative prominence particularly hope for constructive-critical feedback from values for the first seven topics in the environmental the scientific community. dimension range between 50 % (environmental precaution, environmental risk management; energy conversation and reduction) and 88 % (disposal and waste reduction). This homogeneity is likely caused by extant widespread initia- 4 Literature review tives, regulations and certificates in the social and environ- mental dimensions. In the field of human rights and social 4.1 Contents from previous code research and workers rights, the Universal Declaration of Human and from existing supraorganizational codes Rights (1948) and the conventions of the International Labour Organization, especially the Declaration on Funda- Several studies have compared the content of different mental Principles and Rights at Work (1998), have gained codes of ethics with the aim of generating a general content global attention and recognition and thus serve as a bench- inventory. In reviewing these studies, we find that all are mark. Many codes explicitly refer to these (e.g., UN Global organized by CSR-related issues, however, at a rather Compact, Business for Social Compliance Initiative Code of abstract level. There is relative consensus that the most Conduct) or sometimes refer to the occupational health and important topics are labor standards and human resources safety guidelines and management systems ILO-OSH 2001 issues [54, 71, 79, 90], as well as environmental topics [71, and OHSAS 18001. The same applies in the environmental 89, 91, 124]. In the first category, forced labor [54, 132], sphere regarding ISO 14001, which is an environmental child labor [54, 67, 68, 132], non-discrimination [91], management system with increasing international accep- safety and health [60, 89], working hours and wages [91, tance. Although ISO 14001 does not state principles, the way 124], as well as freedom of association and collective codes of ethics do, in its annex, the standard provides a bargaining [54, 132] are mentioned very often. In the comprehensive list of environmental topics which firms are environmental sphere, the most frequently discussed topics expected to take into account if they want to diminish neg- are obedience to laws and regulations [90, 91], control of ative environmental impacts: emissions, waste, and pollution [60, 90, 132], and the use of environmental management systems [91, 124]. More- ‘‘Consideration should be given to aspects related to over, more general statements concerning resource effi- the organization’s activities, products and services, ciency and responsibility toward the environment [60, 71, such as design and development, manufacturing 89, 114] are often reported. In addition, topics such as anti- processes, packaging and transportation, environ- corruption and bribery [40, 114], fair competition [79, 91] mental performance and practices of contractors and as well as production or service quality [60] are deemed suppliers, waste management, extraction and distri- important. bution of raw materials and natural resources, 123 Logist. Res. (2013) 6:187–216 197 Table 5 Results of the content analysis of supraorganizational codes distribution, use and end-of-life of products, and wildlife and biodiversity’’ [55, p. 12]. Explicitly stated principles in Count Prominence Relative the 15 codes in total (%) prominence Other codes were found to have combinations of these (%) environmental topics included, but no substantially differ- Environmental (n = 8) ing topics. Disposal and waste reduction 7 47 88 The four miscellaneous topics that most frequently Use of natural resources 6 40 75 reoccurred in our analysis included: compliance with local, national and international laws and regulations (77 %); the Generic environmental 640 67 responsibility (n = 9) call for transparency and disclosure with regard to stake- Environmental friendly 533 63 holders (47 %); saving processes, products, services products and practices (33 %); as well as stakeholder participation and stakeholder Emissions and pollution 5 33 63 dialog (33 %). The prominence of the principle of com- Environmental precaution, 427 50 pliance with local, national and international laws, as well environmental risk as a priority of legal regulations over code content in cases management of conflict, follow from the nature of codes of ethics: They Energy conversation and 427 50 are means of self-regulation which create normative reduction behavioral guidelines where legal regulations do not exist. Biodiversity protection 3 20 38 Thus, in case topics are already mandatorily regulated, these Exposure to hazardous 320 38 substances laws are binding. Firms’ transparency and the disclosure of information is a precondition to enter the discourse with Water conversation, reduction 3 20 38 Social (n = 14) stakeholders, as it is integral part of the CSR definition. As the results demonstrate, the analysis of existing Non-discrimination 13 87 93 supraorganizational codes validates and specifies what the Child labor 12 80 86 literature review indicated: a relatively stable inventory of Freedom of association and 11 73 79 collective bargaining substantial topics and principles can be found in the field of Forced, compulsory, bonded 11 73 79 codes of ethics. Some principles, such as non-discrimina- labor tion, the prevention of child labor, or demands to reduce Workplace safety and health 11 73 79 waste, pollution and emissions, are even indisputable in the Remuneration, benefits, wages 11 73 79 field of CSR. Moreover, certain further topics could also be Working hours 9 60 64 included in a SCGC, for example the orientation toward Disciplinary practices, human 747 50 existing legislation and regulations, stakeholder involve- treatment ment, or product, process and service safety. In order to Regular employment 5 33 36 serve the purpose of developing a global standard, it would Miscellaneous (n = 15) be advisable for the SCGC to include all these stipulations. Compliance with local, 11 73 73 national and international 4.2 Adoption laws and regulations Transparency, disclosure, 747 47 In addition to analyses and comparisons of code contents, a informing stakeholders prominent research stream refers to firms’ adoption of Safe processes, products, 533 33 services codes. In line with many other scholars [e.g., 94, 106, 128, Stakeholder participation and 533 33 129], Kaptein [61] indicated that commitment to the code dialog by senior and local management is the most important Corruption, extortion, bribery 4 27 27 antecedent for adopting a code of ethics and reducing Fair business and competition 4 27 27 wrongdoings. Management commitment is a precondition Develop long-term strategies 4 27 27 for organizational change, and managers’ perceptions of Respect human rights 3 20 20 the role of business in society shape firms’ actual CSP to a General ethical statements 3 20 20 great extent [9, 93]. Economic and financial 320 20 Adam and Rachman-Moore [2] investigated the role of responsibility formal, informal, as well as personal factors in enabling a successful adoption of codes. They determined that rather The principle was also mentioned in a code with a social focus (FLA workplace code of conduct); thus, 6/9*100 % = 67 % informal methods such as social norms of the organization 123 198 Logist. Res. (2013) 6:187–216 or a positive managerial role model have the largest impact Acceptance and legitimacy of codes of ethics mark on adopting a code of ethics. Similarly, the function of another stream of research. For instance, Mueller et al. [87] leaders as ethical role models by emphasizing top man- analyzed how global standards can gain legitimacy so that agements’ ethical tone and example-setting as crucial to an they are widely acceptable and thus adoptable. Five legit- ethical corporate atmosphere is highlighted [112]. Fur- imacy criteria combining input and output legitimacy [29, thermore, it is important to ‘‘enact a living code (…)by 107] were identified [87]: (1) inclusivity, the integration of focusing on the multiplicative interaction of internal relevant stakeholders; (2) discourse, developing potential authentic leadership, aligned processes, and ethical orga- criteria of standards in a process of communication; (3) nizational culture’’ [126, p. 28]. control, achieved by certification and accreditation; (4) Presumably the most decisive aspect of code adoption for supply chain, integrating all adopters in moving a product firms is the provision of relative advantages. Hence, one or service from supplier to customer; and (5) observability major stream of scholarly research deals with reputational (referred to as ‘‘transparency’’ by Mueller et al. [87]) of the advantages as a main reason for code adoption [94]. Firms results and processes toward stakeholders. Specific insights that are successful at ensuring their CSP finally benefit from related to each of the five legitimacy dimensions can be increased market shares and potential shareholder invest- amended. By improving observability (5) through control ments [66, 98], in particular if they manage to dissociate of certification processes and results (3), legitimacy of themselves from potential greenwashing firms. Every firm, codes is expected to increase [87]. The more knowledge which intends to adopt the SCGC, also has to be aware of stakeholders have of what the code actually seeks to substantial advantages for doing so. Without clearly visible achieve and how it functions, the more trust they will build relative advantages, also in comparison with established toward the initiative and the more likely are they to initiatives, such a tool is unlikely to gain enough followers actively participate in it (1). Moreover, firms presumably since the adoption of multiple codes leads to procedural will not be willing to comply with self-regulatory means if costs and is quite time intensive [59, 94, 113]. the processes and results are not observable. Another relative advantage of code adoption was found Gilbert and Rasche [36] approached the generation by Colwell et al. [21] who performed an inquiry concerning process and adoption of standards and codes from a Hab- the impact of code enforcement in dyadic relationships. ermasian discourse ethics point of view. They claimed that They determined that buyers commit themselves to main- all affected stakeholders should be given an opportunity to tain dyadic relationships with code compliant suppliers participate in defining how such documents are worded (2). rather than with non-compliant ones. Therefore, both sup- In their opinion, stakeholders must be able to at least agree pliers and buyers have a high interest in code compliance with the potential result, which means that they should be since relational relative advantages—such as those linked given a chance to join the discourse. Otherwise, these to prolonged and more collaborative buyer–supplier rela- principles would not be justified: ‘‘Only those norms can tionships—should result from it. Three kinds of relative claim validity that could meet with the acceptance of all advantages of code adoption and compliance thus might concerned in practical discourse’’ [39, p. 41]. occur: reputational advantages with regard to stakeholders, Furthermore but rather pragmatically, supply chains relational advantages in dyadic relationships—upstream were ascribed a multiplier effect regarding the diffusion of and downstream the supply chain, and intra-organizational environmental and social standards, as long as relevant advantages, resulting from reduced procedural costs. members of the supply chain are involved in the process of When investigating the application of Western codes in generating these (4) [4, 23, 87]. The inclusion of these co- China, Hanson and Rothlin [42] found that many firms do innovators fosters compatibility of the SCGC and might not adjust their codes to cultural and national characteris- simultaneously increase its simplicity as those that will be tics. The underlying reason was identified by Logsdon and using the innovation have a voice in the generation process Wood [78] and Talaulicar [117] who pointed to difficulties of the SCGC. of firms in following universal ethical principles while concurrently respecting cultural and national differences. 4.3 Effectiveness They viewed this issue as a particular problem for the sphere of codes of ethics, since these express universalistic Since codes of ethics serve to improve CSP, effectiveness core values. Thus, global standards with universal princi- of codes forms a third pillar of code research. However, ples should be created [78]. Most of the already existing results differ, and the role codes play in improving CSP is initiatives and codes, such as the United Nations Universal Declaration of Human Rights (1948) or the OECD We replaced the DOI factor ‘‘complexity’’ with its opposite, Guidelines for Multinational Enterprises (1976), clearly ‘‘simplicity’’, so as to have only positive effects in the causal model point into this direction, as well. that we seek to develop. 123 Logist. Res. (2013) 6:187–216 199 not obvious [47, 62]. The overall effectiveness of codes for compliance approaches are based on negative rules, such as governing CSR is sometimes even doubted [7]. In accor- pressures, regular monitoring and severe sanctions, com- dance with other studies [18, 108, 121, 127], Bondy et al. mitment approaches to ethics focus on positive values, such [7] emphasized that codes of ethics should be recognized as as learning, collaboration, analyzing root causes to prob- supplements to regulatory and additional self-regulatory lems, as well as incentives and mutual respect. Both studies means. Hence, a mixture of both regulatory and self-reg- emphasized that these approaches do not present an ulatory means is required to increase CSP. This perspective antagonism but are complementary and, if exercised is in accordance with other studies that found that the mere together, might achieve desired outcomes [77, 128]. existence of a code does not significantly affect (un)ethical Last, scholars found that an effective SCoE has to behavior at the workplace [56, 102, 111, 128]. Rather, the comprise the following features: workability, observability quality of communication activities associated with the (referred to as ‘‘transparency’’ by Emmelhainz and Adams code moderates the effectiveness of the latter [61]. Further [33]), monitorability, and enforceability [33]. It is these measures to increase the effectiveness of codes of ethics features which might most improve existent codes that are frequently highlighted by scholars are training programs found to be ‘‘lax in the area of monitoring and enforce- [111, 115]. Trainings are considered to be ‘‘a way of ment’’ [33, p. 56]. Additionally, it was suggested that most institutionalizing ethics in the organization’’ [115, p. 388], SCoEs ‘‘still lack substantial detail’’ on the content side which provide people with patterns of guidance in cases of [33, p. 56]. Kolk et al. [69] point into the same direction as ethical dilemmas or situations in which they have to make they regarded content specificity and means of compliance decisions with regard to code topics [56, 111, 120]. Ethical as SCoE quality criteria. Content specificity relates to the behavior is a continuous learning and application process. degree, to which contents stated in the code are concretized ‘‘The job is never done,’’ as Kaptein and Wempe [63, and measurable. p. 863] put it. Besides trainings and communication, sanctions and 4.4 Literature-enhanced causal model of SCGC surveillance systems play an important role as drivers for adoption code effectiveness [34, 48, 73, 76]. To prevent non-com- pliance, the balance of potential costs and benefits should This section serves to show how the context-unspecific lead to deterrence by making the respective actors aware of antecedents of SCGC adoption derived from DOI can the sanctions (costs) they will have to bear in case of non- mostly be achieved by incorporation of important design compliant behavior [43, 74, 130]. Conversely, incentive features that we synthesized from extant SCoE research. measures, such as rewards, can lead to the fostering of We express these design requirements in the form of six compliance [119]. With reference to Lenox and Nash [75], propositions. Wright and Rwabizambuga [133, p. 91] stated that volun- As a first important antecedent to multiple adoption- tary self-regulations that do not employ explicit sanctions fostering factors, we have identified the aspect of content can even lead to adverse selection problems as ‘‘institutions coverage and specificity. High content coverage of relevant will join to claim the benefits of enhanced reputation with CSR issues fosters the compatibility of the SCGC with no intention of actually implementing their new commit- extant firm structures and processes, as well as with pre- ments.’’ Furthermore, Pedersen and Andersen [94] argued viously used SCoE. By covering all relevant contents that for direct sanctions, third-party monitoring, and enforce- are already taken up by other codes of ethics, standards and ment as effects that trigger the effectiveness of codes.via CSR initiatives, the SCGC can easily be adopted by firms reputational effects [94]. that use one or more of these CSR measures. Moreover, However, sanctions, monitoring, and audits—enforce- covering all relevant topics increases the image of the ment systems in general—are not the only measures of SCGC as stakeholders then perceive the code to be a preventing supplier opportunism. Trust and goal congru- complete and effective measure of increasing a firms’ CSP. ence between buying firms and suppliers also play an If some important principles were missing in the SCGC, important role as safeguards for code compliance as they the code would certainly not be accepted by society, enable closer relationships and hence make SCoEs more stakeholders and firms, but rather suspected to be an effective [30, 57, 94]. Jiang [57] and Egels-Zanden and instrument of greenwashing. Moreover, the image is Hyllman [30] stated that these two aspects may be achieved expected to increase through content specificity: If the by continuous communication and coordination between SCGC provides a high degree of detail in a sense that it all relevant code parties. With regard to the aforementioned allows for effective verification of adopters’ compliance, compliance and enforcement systems, Weaver et al. [128] adopters’ opportunism is likely to decrease. Furthermore, and Locke et al. [77] drew comparisons between compli- specificity of the content of the SCGC ensures that content ance and commitment oriented approaches. While is not confusing and/or redundant and thus effective. This 123 200 Logist. Res. (2013) 6:187–216 fosters the simplicity of the SCGC. Last, the full coverage Communication activities and trainings regarding codes of relevant CSR topics in a high degree of specificity of ethics have empirically been found to increase their enables firms to increase their CSP without using other effectiveness. In line with DOI both means are supposed to measures than the SCGC. This implies relative advantages foster the diffusion of the SCGC. Trainings and commu- for adopters in terms of reputational benefits and savings of nication provide employees with practical knowledge of process costs associated with adopting other codes and the SCGC and thus help to increase trialability and com- standards than the SCGC. As a result, we propose patibility of the initiative. Employees of adopting firms are immediately able to react to any problems of the SCGC P : If a SCGC covers all topics and principles in the area initiative. Through communication, contents and processes of CSR that are (1) undisputed and which (2) become aware for employees and can then be linked to regularly occur in supraorganizational codes and if other CSR practices and initiatives via trainings. Addi- (3) the content has a high degree of specificity in tionally, the SCGC gains simplicity through trainings and order to facilitate the measurement of compliance communications. Frequently keeping awareness for the with the code, then relative advantage, compatibility, SCGC fosters its institutionalization such that employees simplicity, and image of the SCGC will be fostered. are intuitively guided in ethical dilemmas with code-con- Next, we argue, based on the literature review, that form solutions. Furthermore, frequent communication relevant stakeholders and firms upstream and downstream about the contents, processes and results of the SCGC the supply chains should be involved in the process of ensures compatibility as adopters’ awareness for the SCGC developing the SCGC and that coordination with these increases such that they are immediately able to discuss stakeholders will be required once the SCGC has become any ideas and issues regarding the initiative. Therefore, we effective. DOI already informs us that including stake- propose holders in the generation process ensures the legitimacy of P : If the SCGC and its contents are frequently the SCGC. If stakeholders such as buying firms, suppliers, communicated well, and if regular training of or NGOs have the option of participating in the develop- employees and management regarding SCGC- ment process, the SCGC will likely have a positive image related issues occur, in order to increase code among stakeholders in comparison with initiatives that awareness and thus its effectiveness, then were created top down. Second, the inclusion presumably trialability, compatibility, and simplicity of the also fosters the compatibility of the SCGC as experts in the SCGC will be fostered. field of CSR, such as International Organizations and NGOs or individual persons, are able to induct their A SCGC that is globally applicable can first of all be expertise in its development. These expert groups are likely expected to be compatible with extant firm processes, to know the major other standards and codes intimately and structures and SCoE. Second, a globally applicable stan- can thus prevent incompatibility. Moreover, coordination dard for ethical supplier management—as the SCGC is concerning the SCGC in its entirety, allows adopting firms supposed to be—incorporates universal aspects as well as to establish goal congruence concerning the initiative. regional (contextual) particularities. This feature builds Channels for stable exchange about ideas and problems in trust in NGOs, International Organization and other the field of CSR should result in compatibility and triala- stakeholders and thereby fosters the image of the SCGC. bility with respect to CSR initiatives in general and among Moreover, through its global applicability it provides rel- each other in particular. New developments like newly ative advantages for adopters as further codes and stan- emerging CSR-related contents can immediately be dis- dards for different cultural regions or contexts become cussed and tested or directly incorporated into the SCGC if redundant so that procedural cost savings can be achieved. coordination among SCGC relevant stakeholders and Thus, we postulate adopters is provided. Last, the inclusion and coordination P : If a SCGC is designed in such a way that it balances of adopters and stakeholders is likely to lead to as much universal principles with local adjustments without simplicity of the SCGC as is possible. Hence, we propose losing its ability of being globally applicable, and if P : If (1) relevant stakeholders and firms upstream and the SCGC design is assessed against a plurality of downstream the supply chains are included in the cultural and regional norms, then relative advantage, discourse of developing a SCGC and (2) if these compatibility, and image of the SCGC will be parties are coordinated with regard to goals and fostered. requirements of the SCGC, then trialability, Scholarly research on the effectiveness of codes of compatibility, simplicity, and image of the SCGC ethics has identified enforcement systems as safeguards of will be fostered. 123 Logist. Res. (2013) 6:187–216 201 adopters’ compliance. Since stakeholders and society at through the theoretical lense of DOI, it was possible to large are cleary interested in the effectiveness of SCoE in include the dimensions of content and effectiveness in a general, a highly effective SCGC will also feature a posi- superordinate model of SCGC adoption, thus interlinking tive image, in accordance with DOI. Given that the our three research questions. Moreover, for five of the majority of codes of ethics have no enforcement system in adoption antecedents derived from DOI (relative advan- place, many stakeholders are skeptical of their utility in tage; trialability; compatibility; simplicity which is absence increasing firms’ CSP. As stated above, codes and CSR of complexity; and image) it was possible to use the cat- initiatives are sometimes even suspected of being measures egorized literature in such a manner that it informs us of greenwashing. The intended SCGC must thus be able to precisely how these antecedents can be achieved in our provide means of effectively ensuring adopters’ compli- research context, as expressed in the six propositions. ance such that stakeholders are building trust in the ini- Literature has informed us that top-management com- tiative. The more stakeholders agree upon the effectiveness mitment is also an important driver of SCoE adoption. of the SCGC, the better the image of the code becomes. Since this finding was not directly derived from DOI, we Hence, we postulate considered its place in our causal model. While proposi- tions P to P relate us to antecedents of the adoption 1 5 P : If the SCGC features a sophisticated enforcement drivers that DOI informs us about, and while P refers us to system, consisting of a deviance detection a DOI factor as such, we find that management commit- mechanism, clearly defined sanctions, and an ment is an effect of DOI factors, rather than its cause: If a incentives scheme to foster effectiveness, then the firms’ top management perceives the SCGC to be relatively image of the SCGC will be fostered. advantageous, compatible with its structures and processes Last, as directly derived from the literature review, we and to possess a positive image, then it will commit itself to postulate that the SCGC has to provide observability adopting the SCGC. By having ensured relative advantage, throughout the entire initiative. High observability of all compatibility and image through P to P , top-management 1 5 SGCG-related rules (e.g., referring to enforcement, certi- commitment will also be ensured. Thus, our causal model fication processes, and results) also increases its legitimacy derived from DOI and enhanced by extant literature reflects among stakeholders and especially adopters. Firms and a comprehensive view on theory-deduced requirements for stakeholders are likely to build more trust in a SCGC if the design of the SCGC. they observe how it functions. Therefore, we propose P : If the SCGC features easily observable contents, 5 Insights from corporate experts on the key success processes, and results such that they are controllable factors of the SCGC design by internal and external bodies, then this will foster its adoption. Insights from the content analysis were continuously open Figure 1 summarizes the six propositions and gives an to iterative feedback from corporate partners. Yet, the overview of the literature-enhanced causal model of SCGC previously stated six propositions were supported and adoption that we developed. Having referred to the body of validated. In particular, certain aspects, which we had scientific knowledge that we sampled and categorized already elaborated on in the literature review, were Fig. 1 Literature-enhanced P P 1 1 Content coverage Content coverage causal model of SCGC adoption Relative advantage Relative advantage and specificity and specificity Trialability Trialability P P 2 2 Inclusion and coordi- Inclusion and coordi- nation of stakeholders nation of stakeholders Compatibility Compatibility P P 3 3 Communication Communication Management Management SCGC SCGC and trainings and trainings adoption commitment commitment adoption Simplicity Simplicity P P 4 4 Global Global applicability applicability Image Image P P P P 6 6 5 5 Enforcement Enforcement Observability Observability system system 123 202 Logist. Res. (2013) 6:187–216 explicitly emphasized and interviewees gave us important allocation of each organization to an industry. However, insights for developing a design concept of the SCGC. firms often supply many different industries so that a single However, corporate experts also contributed additional firm would have to be assessed according to multiple cri- insights for the development of the SCGC design solution. teria and relational values, each time with only a fraction of its entire business activities. Moreover, although industry 5.1 Content: a dilemma between specificity standards or industry-specific add-on modules might be a of the SCGC and its general applicability viable option to tackle the problem of abstraction versus specificity, this options bear the risk of losing track to In almost all discussions concerning potential contents and develop a single SCGC. principles of a SCGC, we arrived at a crucial meta-level: Similar problems arose with regard to firm size and what is the right degree of abstraction to be applied to the normative issues as contexts. Since several performance code in order to maintain its universal applicability? The criteria could be difficult to assess for firms with little same conclusion can also be drawn from the results of the human resources and limited technical capacities, the literature review: From P , we learn that a SCGC has to applicability problem might also occur with regard to firm balance universal principles with local adjustments without size. Furthermore, most of the practitioners in Germany losing its ability of being globally applicable. However, expressed the opinion that the SCGC might not only be according to P , a SCGC also requires content specificity, seen as a minimum standard but that it also has to convey in order to define clear criteria for assessing compliance. some normative values. Democratic rights of participation, Together, these two requirements pose a major design equality of women and men, freedom of religion, etc. are challenge for the SCGC: The higher the specificity of the fundamental human rights that are also integral parts of the SCGC contents, the lower is its applicability in different United Nations Universal Declaration of Human Rights. contexts and vice versa. Contexts can differ by industry, Although there was general agreement that protection of firm size, or culture. For instance, the specificity of these principles belongs primarily to the sphere of legal requirements concerning the exposure to hazardous sub- regulations and political law-making, German experts stances will obviously differ in between contexts of emphasized that human rights aspects ought to be incor- chemical or pharmaceutical industries and the sporting porated, at least in a SCGC preamble. The same was stated goods industry context. The same applies to assessment with regard to certain contents that are not globally criteria concerning firms’ actual CSP. Some companies are accepted. Western firms operating in the pharmaceutical, located in industries which by nature cannot achieve the chemical or food industry are, for example, aware of the highest levels of CSP in terms of outputs, although their importance of animal care issues, not just because of cus- tomer pressures which are rooted in Western values that efforts may be honorable. At the outset of our research, there was widespread consensus between scholars and ascribe animals certain rights. Animal rights are, however, practitioners that a strict prescriptive model of the SCGC not (yet) universally accepted. Thus, although P requests was required in which the degree of achievement of each to include all relevant topics in a SCGC, these must be principle would be measurable and quantifiable, indepen- carefully screened and selected, and an institutionalization dent of the context. However, over the course of the study, of possible SCGC adjustments must be foreseen in order to this particular idea was given up. In addition to the diffi- react to future developments. culty of quantifying social phenomena, which was already Furthermore, as an important insight concerning the conceived as hardly solvable, the main argument is that content side, it was added that in terms of fair wages and absolute terms are not qualified for an assessment of the remuneration, a negative formulation of the very principle CSP of firms located in different industries as they are not would be favorable: Whether conditions are considered to comparable. Benchmarks of what is considered to be eth- be fair depends on different working contexts. Thus, the ical vary greatly among industries. Hence, if a SCGC and majority pledged for stating the prevention of (financial, its measurement system are created in a context-indepen- physical and psychic) exploitation as a concrete principle dent manner, some firms will always fall far short of others. of the SCGC. A similar problem occurred regarding the Imagine a comparison between a coal power station that rights of workers to organize themselves in unions. As emits enormous amounts of carbon dioxide and an IT some countries explicitly prevent the foundation of unions, provider that does not. Besides the problem of measuring the SCGC might take this into account. A principle the real value of produced carbon dioxide, how many tons regarding this issue might state that unions should not be mark the border between social responsibility and non- prohibited by firms. responsibility? Next, weighted criteria, according to the Last, as already stated above, participants encouraged to industry in which they are applied, were conceived as an explicitly incorporate the well-established environmental alternative. Such an approach would necessitate a definite standard ISO 14001 into the SCGC, as this management 123 Logist. Res. (2013) 6:187–216 203 system conjoins many of the environmental issues found in can be disaggregated into two factors: quantity (of ethical CSR-related codes. firms, especially SCGC adopting firms) and quality (which Generally speaking, it became evident, that a SCGC will refers to each firm’s actual CSP). Hence, the desired SCGC not start with a blank slate. As an audit expert from aspiration level intuitively presents itself to be a quantity- organization L (L1) stated: ‘‘to generate a standard for the quality dilemma: The lower the aspiration level of the future that faces only little resistance, one should have the SCGC, the higher the possible number of SCGC adopting opportunity to incorporate (other codes and initiatives). firms. The higher the aspiration level of the SCGC, the That sometime in the future only (the SCGC) exists—that lower the number of SCGC adopting firms (cp. Fig. 2). would of course be the ideal case—but on the way to that, More precisely: If the SCGC was designed in such a others should not be excluded, but taken along.’’ As the way that its aspiration level was rather low, hypothetically, neglect of other CSR initiatives would illustrate myopic many firms would be capable of adopting it (‘‘quantity hubris, the SCGC has to be able to incorporate these in any approach,’’ cp. Fig. 2a). For instance, low barriers in terms manner. of requirements to adopt the SCGC and to comply with it To sum up, even though there appears to be an inherent together with neglectable or missing enforcement mecha- dilemma, assessment criteria for CSP in the SCGC are nisms decrease the quality of the SCGC initiative and desired to be both abstract and contextualizable. The SCGC deteriorate its image. Thus, by enabling laggard firms to must find the right way of balancing normative demands comply with the initiative, such an approach would only and prescriptive requirements, since a code that is too foster ethical supply chain management by the pure demanding might demotivate those people affected by it quantity of possible adopters. Many firms that have not yet and might be seen as ‘‘a collection of empty promises’’ [63, implemented CSR practices or that are at an early stage p. 859]. regarding their CSP will nevertheless be able to join the SCGC initiative (cp. N in Fig. 2a). Regarding the diffu- 5.2 Adoption: persuading as many firms as possible sion of the SCGC initiative, it is assumed that the pure to join the SCGC mass of adopting firms might convince further firms to take part. However, especially firms that by far outreach the In our collaboration with practitioners, there was consensus hypothetical low aspiration level (cp. N in Fig. 2a) stated early on that the SCGC initiative has to be adoptable by a that they would have no incentives to join. They are usually high number of firms, as well as by firms with divergent innovators or early adopters of CSR and already have a CSP if its adoption was to be successful. Since the main high CSP. Most of them take part in other CSR standards purpose of the SCGC is to foster CSR on a global scale as and codes of ethics, which have a higher aspiration level much as possible, the fact that firms differ greatly in terms and which thus provide adopters a better image. For them, of their CSP has to be considered, practitioners advised. such a SCGC design would provide only marginal or even Moreover, the SCGC will only be able to become a stan- no additional (foremost reputational) advantages, but might dard for ethical supply chain management if it features the impose additional costs. capacity to capture as many adopters as possible. In The inverse problem would occur, if the SCGC had a accordance with DOI [97], experts stated that a critical high aspiration level (‘‘quality approach’’) as the number of mass of adopting firms has to be acquired to trigger other possible code adopting firms would then be limited (cp. firms to join the SCGC. At the macroeconomic level, CSP Fig. 2b). In this case, only those firms could be addressed Fig. 2 Quantity-quality (a) Quantity approach (b) Quality approach dilemma of SCGC aspiration level Possible Possible number of number of adopting firms adopting firms N N 1 1 N N 3 3 x x SCGC SCGC aspiration aspiration level level 123 204 Logist. Res. (2013) 6:187–216 that already spend much effort on CSR and that have a high With regard to reputational benefits, one expert (O2) CSP. Challenging content-related barriers in terms of stated: ‘‘Firms, which already possess a strong brand or a requirements to adopt the SCGC and to comply with it brand under establishment, should have incentives (to join together with strong enforcement mechanisms would the SCGC initiative)’’ Since the SCGC goes beyond what strengthen the quality of the SCGC and thereby ensure a is legally required, stakeholders with pronounced interest high level of ethical supply chain management for the in CSR will ascribe adopters a positive intention and firms that are able to adopt the SCGC. Since only a small willingness toward this issue. A challenging SCGC that number of firms with a high CSP would be capable of effectively prevents unethical behavior thus presents a adopting the SCGC, it would presumably have an excel- source of reputational benefits for firms that adopt the lent image and would be conceived as a benchmark in the SCGC. In particular, if the SCGC provides enforcement field of CSR-oriented codes. If this was the case, con- mechanisms in a sense that non-compliance will be sanc- cerning further diffusion, firms would likely perceive the tioned and thus greenwashing prevented, adopting firms SCGC initiative as a means to distinguish themselves might profit from the positive image of the initiative, from their competitors, and thus have an incentive to be professionals affirmed. By proactively engaging in CSR part of it. However, many firms that have not yet imple- initiatives, firms have the opportunity to distinguish mented CSR practices or that are at an early stage themselves from their competitors. regarding their CSP would not be able to join the SCGC Furthermore, corporate experts pointed to another initiative (cp. N in Fig. 2b). interesting perspective on benefits of a SCGC: Besides As one of the main insights concerning the adoption of a positive advantages, firms often also highlight potential SCGC, experts agreed that the management of firms quite risks that occur with increased CSR demands from stake- often will not be convinced to act responsibly by legal or holders, in particular in their supply chains. Procurement ethical reasons alone. Thus, economical arguments that professionals emphasized the fact that the degree up to depict a business case for the SCGC and CSR might be a which any buying company is in a position to effectively useful trigger, experts said, in concordance with the rela- control the compliance of its suppliers (by monitoring, tive advantage factor identified from DOI. Although such audits and certificates) decreases with vertical supply chain arguments have been criticized in that they do not suffice in complexity, i.e., the farther away suppliers are located from achieving complete CSR [28], visible benefits of partici- the company in the supply chain. H1 reported: ‘‘With more pating in the SCGC initiative will leverage the adoption than 60,000 goods per year, you cannot credibly propagate and diffusion of the SCGC. Practitioners highlighted the to buy every small product ethically. You have to draw the reduction in procedural costs, as well as potential reputa- line after the third tier level and admit that you act to the best of your knowledge and belief, but that you are not tional benefits as relative advantages and thus adoption facilitators of the SCGC. As one reoccurring example, perfect.’’ However, buying firms are continuously held firms referred to the common phenomenon of ‘‘audit fati- responsible for what happens at their suppliers’ sites [5]. gue’’—a traceable refusal to conduct or to be subject to Experts were thus convinced that a SCGC can also be further audits, which follows from the plurality of extant understood as a useful tool for CSR-oriented supply chain SCoE, as discussed in the introductory chapter: The task of risk management since it guides firms’ procurement deci- controlling suppliers’ compliance with all requirements sions in a CSR-oriented manner. causes intensive efforts for the buying firm, as well as for the controlled suppliers. In the worst case, a supplier is 5.3 Effectiveness: internal and external support audited by multiple buying firms with regard to the same for the SCGC issues several times over a short time period. This is a very ineffective side effect which could be prevented by unified In discussion with corporate experts, it was frequently audit criteria, continuous information exchange, and emphasized that the SCGC is most likely to be successful, observability. While some experts (B1, F1, G1) initially if it receives strong internal and external support. Firms are feared that a SCGC would be yet ‘‘another code of many’’ more likely to join the SCGC initiative if it is trustworthy which causes extra audits, others immediately recognized and stakeholders are expected to appreciate an observable the standardization potential behind the idea which ideally initiative. would decrease the number of audits in the long term, as is As we already concluded from reviewing the literature, the case in industry-wide initiatives. The majority of codes of ethics require internal support in the form of top- practitioners were convinced that if a SCGC could actually management commitment to become embedded in the combine crucial aspects of all foregoing initiatives and if it culture of firms. Practitioners underscored this proposition incorporated a standardized auditing mechanism, the total by pointing out that although procurement divisions enjoy amount of audits would be reduced. a high degree of independence regarding their buying 123 Logist. Res. (2013) 6:187–216 205 decisions, commitment by the executive management level prevented (cp. P ). The mere plea to firms to behave has to be given in order to follow codes or strategies. As responsibly has no effect since, as one of the participants one Chief Procurement Office (CPO) (G1) explained, (F1) pointedly stated ‘‘what does not have to be done, will ‘‘Grand moves cannot be adopted without the Chief not be done.’’ In this sense, the SCGC has to be designed so Executive Officer (CEO), regardless of how ambitious a that non-compliance leads to economically undesirable CPO or a division may be.’’ CSR policies have to be situations. Audits were conceived as the most important anchored in a firms’ corporate culture in order to be instrument to assess SCGC compliance. When asked which effective. Implementing a CSR culture is a continuous organization could carry out third-party audits and moni- learning process which requires enduring commitment and toring of processes and results, experts pledged for a pro- investments. Since these aspects do not pay off in the short fessional and accredited organization with high expertise in term, firms are biased toward avoiding them in order to these issues. The cooperation with an independent, maximize (short-term) shareholder value. Frequently, only accredited audit organization assures impartial assessment a CEO or senior management can approve such strategic and evaluation of compliance with the SCGC. With their investments, the experts’ tenor was. Thus, if firms actively broad networks of well trained on-site employees all over strive for CSR, they usually promote it to an integral part of the world, who are proficient in monitoring and auditing corporate strategy and strive to continuously raise their CSR issues, these organizations possess the required pro- level of CSP. Furthermore, interviewees agreed upon the fessional competence. Their engagement would likely also idea that the SCGC would also be able to acquire strong improve the credibility of the SCGC. In collaboration with external support from a highly respected International a yet to be created SCGC-launching body, the audit orga- Organization, such as the United Nations, the International nization is supposed to develop a sophisticated enforce- Organization for Standardization, or another influential and ment system with institutionalized monitoring and auditing well-respected institution. To disseminate a new initiative mechanisms and a prescribed set of sanction rules. How- and to promote it as a widely accepted standard for ethical ever, attention has to be paid that the audit organization supply chain management requires support. Because many does not get into a conflict of interest as a co-creator and codes are already in use, high entry barriers for new executer of the enforcement system. emerging codes exist. If, for instance, the United Nations supported the SCGC, a high degree of credibility in the 5.4 Additional insights: CSR necessitates a continuous initiative could be achieved that in turn facilitates over- and incremental learning process coming these barriers. Managers that recognize the very organization as reputable will build trust in the SCGC and When Chinese and Indian interviewees were asked about in turn might have a higher probability of adopting the their particular cultural perspectives on CSR or different code. The idea to engage a highly respected sponsor contents a SCGC could reasonably cover, they did not organization would certainly foster the image of the SCGC express substantial differences to the perspectives of and thus facilitate adoption and diffusion, in accordance practitioners in Germany. Except for an accentuation of the with DOI. prevention of corruption and the notice that noise is a Furthermore, in order to get the strongest credibility and particularly important issue in emerging countries, contents support, firms’ and society’s aspiration in the SCGC have regarding CSR appear to be the same, globally. Hence, to be aligned. If the initiative is accepted and respected by proposition P together with the specific list of principles society due to its overall positive effects for CSR and derived from the content analyses of previous literature and simultaneously bears advantages for firms, then a win– extant codes were strongly supported and validated. win situation can arise. Concerning society’s interests in a However, achieving high levels of CSP is even more well-functioning SCGC, practitioners suggested enhancing complex than it is often expressed [cp. 80] and simple observability of firms’ CSP. The main argument for this is solutions are rare. What might count as ‘‘right’’ in one that only if the results of SCGC audits are available to context might be ‘‘wrong’’ in another. This was illustrated stakeholders like media, NGOs, governments and so on, by a CPO (G1), who had just returned from a journey to CSR wrongdoings can be distinctively blamed and CSR potential suppliers in Africa. He reported from situations in pioneers praised in terms of reputation (cp. P ). If this is the which children help their families doing work a few hours a case, competitive market mechanisms apply that cause day so that they and their siblings are able to afford school improvement at all levels of CSP thus increasing CSP, uniforms. If children did not have the opportunity to enter overall. However, it was emphasized that third-party school because of missing uniforms, he argued, then monitoring and auditing were to be employed and that a Western firms that discourage child labor and contact to SCGC will also have to be enforced by sanctioning non- these people, would actually cause more harm than good. compliant behavior so that potential opportunism can be Another well-known example is that of children who 123 206 Logist. Res. (2013) 6:187–216 worked as football stitchers in Sialkot, a Pakistanian city in support of the buying firm’s supply chain management which about 60 million hand-stitched footballs are pro- function (whatever the specific denomination may be) as a duced in a World Cup year [64]. Due to the international critical factor for success. With regard to power aspects focus on the sporting goods industry and its ‘‘Atlanta which usually increase downstream supply chains, this Agreement’’ (a ban on child labor), overnight thousands of appears to suggest that a sales or distribution unit would be children became unemployed. As a result, these children the primary addressee of the SCGC. However, practitioners were forced to seek employment in brickworks and metal- pointed out that many of the problems that we seek to working companies, where the agreement was not valid. prevent may occur anywhere within a supplier’s organi- However, compared with their former work, the children zation, most importantly within their operations. Thus, suffered under even harsher working conditions without buying firms are supposed to address suppliers’ entire learning any useful trade [12]. Of course, there are severe organizations and all processes carried out by them. Fur- cases in which children are actually exploited which shall thermore, corporate experts were of the opinion that buying in no way be relativized. Nonetheless, the anecdote depicts firms were ‘‘obliged’’ to prevent ethical problems inter- the difficulty of viewing CSR as a manicheistic choice nally, before demanding this from their suppliers through a between good and evil, or black and white. SCoE. Excluding the inherent normative element from this Asian practitioners reported that, unfortunately, many perspective, it still appears that for a supplier to actually be firms in their countries are still only focused on the eco- sensitized for the norms and values behind the SCGC (or nomic dimension. While in these countries regulations and actually any SCoE), the buying firm is able to demonstrate laws that target issues such as environmental protection its internalization of these values. We conjecture that, and working conditions also exist, a significant number of indeed, buying firms must have a corporate code of ethics firms regularly do not comply with them, according to or a surrogate in place before they actually approach their corporate experts. For these firms, CSR is apparently only a suppliers with these issues. Only through responsible useful buzzword that helps to sell products and services. internal behavior might firms be seen as role models [cp. All Asian experts agreed that at some level of develop- 93, 112] that have the authority and acceptance to legiti- ment, all dimensions have to be reconciled and balanced in mately control for SCGC compliance. Thus, the SCGC is a order to achieve sustainable growth. However, criticism general code of ethics that is to be diffused holistically with respect to these practices might be based on Western throughout supply chains, rather than a SCoE only. The beliefs and be myopic, since, from the perspective of Asian most promising process by which the SCGC stands a experts, economic growth is considered to improve quality chance to become a reality appears to be a major effort by of life of poor people. A German expert (G1) conceded: firms in the developed world to actually improve CSP in their upstream supply chains. Arguing that presumably ‘‘We have to beware that the German perspective cannot be the measure of all things. There are differences in mindsets, these firms will be characterized by comparatively minor and other worldviews have their right to exist.’’ When we internal CSR problems, their supply chain management asked why only a few companies today are justifiably organizations are the first functions whose support is crit- regarded as top performers in CSR, professionals high- ical for SCGC success. lighted that an ambitious CSP is unlikely to be reached Furthermore, while anticipating the adoption of the easily from 1 day to another. Rather, in line with the nat- potential SCGC with interviewees and workshop partici- ural resource-based view [45], as well as with the stream on pants, a seeming paradox became apparent: If the SCGC is sustainable education [e.g., 41], the adoption of CSR pro- to be diffused as a standardized SCoE, demanding that cedures has to be regarded as a continuous improvement each buying firm purchases according to the same SCGC and gradual learning process that is mostly path-dependent principles, then inevitably the call for a supply chain per- and incorporates cultural as well as relational components spective leads to the situation that full global SCGC [103]. Becoming ethical is, in the words of one of the adoption and compliance with the SCGC is required right corporate experts (R1), a ‘‘learning process that does start from the first adoption by any firm. For example, if firm A from scratch, [and there is] no patchwork process.’’ buys a good X from a supplier B under SCGC conditions, then the integration of a supply chain perspective requires 5.5 Additional insights: the supply chain perspective B to also have bought all components and services neces- sary for X under SCGC conditions, and so forth. Because The corporate experts pointed toward means by which the of present levels of vertical disintegration and division of initiative ought to adopt a supply chain perspective. In this labor, the mechanism would basically cause a domino regard, an important question concerns both the sponsoring effect requiring complete SCGC adoption by all firms right function and the addressee function of the SCGC. As the from the beginning. This circumstance, in turn, would name of the envisioned standard indicates, we regard the presumably prevent any initial SCGC adoption. Hence, the 123 Logist. Res. (2013) 6:187–216 207 SCGC must take a supply chain perspective, while at the Integrative approach (CMM) same time including a viable and sophisticated role-out mechanism. Possible number of adopting firms 6 Proposed SCGC design concept In this section, we describe the proposed design concept in its entirety. It was possible to comply with all requirements. With respect to SCGC content, the interaction with corporate experts strongly supported the picture drawn from the content analysis (cp. Table 5). In concordance with previous codes of ethics, SCGC content could primarily be SCGC aspiration expressed in form of behavior-guiding principles (rules). level However, we found that the mere generation of a SCGC document that contains a set of principles does clearly not Fig. 3 Integrative approach (CMM) as solution to the quantity- suffice to effectively govern the behavior of firms, manag- quality dilemma ers, employees, and suppliers. Rather, a perspective is rec- ommended which regards the SCGC as being entangled in aspiration level) (cp. Fig. 3). Further, by making these an entire management system. The SCGC management levels observable to outsiders, firms have strong incentives system as we propose is comprised of three building blocks to comply with the highest aspiration level possible. The of components: SCGC core modules, SCGC supplements, CMM thus maximizes the real-world impact of the SCGC, as well as related institutions. We explain each in turn. as is graphically suggested by the shaded areas in Fig. 2a, b, as well as 3. Furthermore, through the mediating 6.1 SCGC core modules beside guiding principles mechanism of increasing observability, the CMM triggers CSP-related competition and thus increase global CSP The most important core module of the SCGC management levels, in the long run. system beside the SCGC principles is a capability maturity By being applied to supply chains, a CMM also incor- model (CMM). Since different firms adopt innovations at porates a multiplier effect with regard to adoption of the different points of time [100] and as firms differ in their SCGC [cp. 4, 23, 87]. In fact, the SCGC CMM can be a actual CSP, potential adopters might greatly vary in their creative bypass for the previously discussed issue of propensity to adopt the SCGC. However, all the advantages seemingly needing full global SCGC diffusion and com- of the SCGC innovation become relevant only after a pliance right from the first adoption by any firm. Further, critical mass has adopted it, which makes the SCGC a having different aspiration levels in place fulfills the standard. Yet, the CMM enables the provision of this requirement of considering CSR as a learning process. At critical mass such that each previous and all later adopters any given aspiration level, firms are hence presented with of the SCGC will profit from its further diffusion. In par- suggestions for further improvement, which are precisely ticular, the CMM provides the opportunity to address a the requirements that have to be fulfilled for the superor- highly heterogenous set of potential adopting firms by dinate aspiration level. Furthermore, throughout various iteratively rising aspiration levels. The integration of a aspiration levels, suitable extant codes and standards can be temporal perspective on SCGC diffusion [100] via a integrated into the SCGC, which complies with an addi- dynamic CMM enables a workaround for the prima facie tional requirement identified from the interaction with dilemma of having to choose a ‘‘quality approach’’ or a corporate partners. Overall, a CMM appears to be at least ‘‘quantity approach’’ for the SCGC aspiration level (cp. as important to the success of the SCGC initiative (i.e., Fig. 2) and synthesizes them into an ‘‘integrative adoption and effectiveness) as the SCGC principles. approach’’ (cp. Fig. 3). In this case, both the high quantity Figure 4 provides an overview of a possible specific CMM of laggards (firms that are at an early stage of CSP) and the to demonstrate the feasibility of using a CMM in general. It smaller number of early adopters (firms that already have a is, however, not claimed that this particular CMM design is high CSP) are addressed. Each SCGC adopting firm is able the ‘‘best’’ or only conceivable one. We will now explain to comply with an aspiration level that is adequate for its the CMM in detail: respective context so that as many potential adopters as The first aspiration level of the CMM can be viewed as a possible can be addressed (e.g., N ,N , and N will be minimum stage which firms throughout the world can 1 2 3 categorized according to their CSP to a certain SCGC agree to with relatively little effort. For example, this could 123 208 Logist. Res. (2013) 6:187–216 SCGC Rollout E.g., E.g., E.g., E.g., Documenta- 20% of total 30% of total 30% of total 60% of total Voluntary self- Publication of tion of purchasing purchasing purchasing purchasing commitment documented compliance volume volume volume volume towards SCGC activities and with SCGC Level 1, Level 1, Level 3, Level 3, principles results principles 20% Level 2 40% Level 2 50% Level 1 20% Level 2 Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 UN Global Partnering against Compact & ISO 14001 ILO Tripartite Corruption certification Declaration Initiative Extension of SCGC to supplier portfolio nd rd Audits and certification through customers (2 party audits) and independent audit organization (3 party audits) Fig. 4 Proposed capability maturity model (CMM) overview be a voluntary self-commitment to the principles of the assessment by experts of CSR efforts, processes, and SCGC, which means that firms sign the SCGC and thereby results. For example, NGOs that are active in the respective declare to respect its contents. Level two could be distin- firm’s local area and corporate procurement officers who guished from the former by prescribing the requirement are skilled in interpreting numbers and results know best that activities and processes implemented with regard to which firms fall short of being social responsible or which the SCGC principles are documented and made accessible serve as positive benchmarks. By making performance to direct customers on request. However, it might also be public or at least available to a certain group of selected based on voluntariness like the first level such that com- members (the call for disclosure has always to be balanced pliance is not audited or controlled in any way. This would against firms’ confidentiality interests), firms can be ranked result in a higher degree of observability for buying firms, according to their CSP. A process like that introduces which in turn would have the opportunity to select their market logic as stakeholders might start to blame bad suppliers according to these indicators, or at least to ask performers, whereas responsible firms will start to praise them for particular aspects of the documentation. Customer their engagement and their results with regard to their firms might thus obtain some kind of early warning competitors. Consequentially, increased competition with instrument with regard to ethical risks by gathering risk regard to CSR can be expected, as good values and rank- information and building thorough knowledge with regards ings foster reputation of firms [19, 104]. Moreover, pro- to these issues within their supply chains [96]. The mere curement managers’ decision-making processes are documentation might already facilitate timely reactions if expected to be influenced by this information if their problems arise with suppliers. This mechanism would even intention is to foster ethical supply chain management. be strengthened at higher levels of the CMM if firms were Hence, in the long run, suppliers that do not strive for CSR obliged to publish these activities and results. For example, (which are not ranked or poorly ranked) might lose orders. one might think of a small document similar to CSR In order to bypass the problem of audit fatigue, the reports. The concept of publishing the activities and results CMM has to offer a standardized audit mechanism. is based on the conviction that interested stakeholders, CSR Whereas at a lower aspiration level, firms could still be experts, and firms in general will be able to assess the CSP entitled to second-party audits by their customers; at a of firms in detail. Such a use of decentralized evaluation higher level, only a specialized accredited organization knowledge allows for bypassing the assessment of CSP on should conduct such audits. It is important that firms that absolute terms and facilitates external and context-specific were recently audited (either second-party or third-party) 123 Logist. Res. (2013) 6:187–216 209 do not have to expect further unnecessary audits as long as right from the start. However, this would presumably they do not show irregularities. Otherwise, intended pro- prevent any initial SCGC adoption. cedural costs savings of the SCGC initiative would not take Overall, the CMM offers the following features that effect. As long as no follow-up audits become necessary foster the diffusion of the SCGC: First, the CMM enables due to well-defined reasons, all firms adopting the SCGC observability of SCGC contents and processes and of CSP are obliged to rely on extant SCGC system internal audit results of SCGC adopting firms through publication obli- results. Thus, a third-party audit organization is one of the gations and rankings. This high observability is supposed basic linchpins of the SCGC. to be appreciated by stakeholders and should thus increase As a further important aspect of the CMM, we propose the image of the initiative. As a side effect, firms have the the incorporation of extant, renowned codes at different opportunity to better assess potential business partners, stages of the SCGC. In particular, two options were which diminishes CSR-related risks in turn. Second, the conceived: On the one hand, the SCGC could explicitly CMM enables relative advantages for SCGC adopters in demand compliance with other codes and standards at terms of reputational benefits and decreased procedural certain levels. For instance, joining the UN Global costs. Third, as the CMM allows for optional inclusion of Compact may be a requirement that could be fulfilled by additional well-known initiatives, (industry-) specific all firms and which therefore could be demanded at a very codes, and standards at different aspiration levels, the early level of the CMM. In contrast, the environmental global applicability and compatibility of the SCGC will management system ISO 14001 entails more challenging increase substantially. Fourth, by offering different aspi- compliance conditions and would thus have to be sub- ration levels, the CMM conceives CSR as a learning pro- jected to a higher SCGC level. On the other hand, one cess and offers as many potential adopters the opportunity might think of an assessment model that values the input to join. Lastly, the incorporation of buying firms’ suppliers of divergent standards and codes with regard to certain from certain aspiration levels on fosters the supply chain issues and principles. According to this option, being perspective of the SCGC and also enhances the critical compliant with a particular standard X could, for example, mass of adopters, while at the same time, the dilemma of cover a certain percentage of principles Y and Z of the full synchronal SCGC adoption by all firms is avoided. SCGC. Following this path, the SCGC would become a Beside the principles and the CMM, another SCGC core meta-code that reconciles the multiplicity of existing module is proposed here, namely a preamble. The pream- codes. As, together with the other SCGC components, the ble serves as a value-oriented counterpart to the rather employment of the CMM is intended to ensure global compliance-oriented principles [cp. 128]. By appealing to a applicability without losing specificity; the first option common spirit and by referring to shared values, the pre- amble is supposed to create a common identity for adopters appears to be superior and is proposed here. The oppor- tunity of including other more specific codes as well as of the initiative. Furthermore, by leaving room for nor- industry-specific add-ons grants high degrees of specificity mative demands, the preamble allows the SCGC to be for different CSR aspects. more than a minimum standard only. By positively stating As the last and main feature of the CMM, we propose to the very values the SCGC stands for, the preamble serves actively involve suppliers in the roll-out of the SCGC, as a counterpart to negatively formulated principles, which thereby using the multiplier effect of supply chains to only contain what has to be prevented and thus might be diffuse the SCGC. From a certain level on, the SCGC threatening [63]. Demanding values beyond those rules of extends compliance with its principles from a single firm compliance might increase the image of the SCGC among focus to the respective supplier relationships of a firm. For stakeholders. Figure 4 depicts the CMM and graphically instance, at a given maturity level (e.g., level 4), a customer summarizes the above-stated findings. firm that has signed the SCGC is required to buy at least 20 % of its total purchase volume from suppliers which 6.2 SCGC institutions have to be on at least Level 2 of the SCGC. Through this feature, we abet that buying firms use their market power in The SCGC core modules are supported by related institu- order to support the SCGC. Consequentially, the mecha- tions. Those are a so-called SCGC board, one or more audit nism establishes self-enforcing SCGC adoption, also organization(s), and ideally an influential International resulting in increasing social responsibility in supply Organization as a sponsor. chains. If it was done differently and supplier compliance The SCGC board is supposed to serve as the SCGC- with the SCGC was demanded from the lowest level launching institution, to oversee the future development of onwards, then because of present levels of vertical disin- the initiative and to become a platform on which code tegration and division of labor, the mechanism would adopters have the opportunity to exchange information and basically require complete SCGC adoption by all firms, perspectives regarding the SCGC. The SCGC board 123 210 Logist. Res. (2013) 6:187–216 furthermore institutionalizes communication and provides patron for the SCGC initiative and to support it in reaching coordination of trainings among all stakeholders and even a critical mass of initial participants by increasing the legislatory bodies and thereby increases awareness for image of the initiative. According to DOI, the greater the SCGC topics. By providing these channels of exchange, the reputation of that organization is, the better the image of board ensures trialability and simplicity of the SCGC as the whole SCGC initiative will be and thus the higher the problems and developments can be discussed and tested. rate of adoption. Thus, the SCGC board is supposed to be the first institution to be founded in order to create the SCGC core modules, 6.3 SCGC supplements together with relevant stakeholders such as possible adopting firms, supporting organizations, and interested Last, the SCGC requires certain supplements which result NGOs. A collaboration platform provided by the SCGC partially from the other two components. Specifically, audit board helps not only to coordinate participation of all guidelines and sanction rules will be necessary if the code involved actors, but also builds trust among all involved is to be effectively enforced. Clearly formulated audit parties and thus enhances the legitimacy, i.e., image of the guidelines and sanction rules that are applied to all adopters initiative, in accordance with our DOI-guided analysis. strengthen the enforcement of the SCGC. Their standard- Furthermore, in order not to lose its compatibility and ization decreases the need for enforcement processes and image, the SCGC will have to be continuously refined as procedural costs associated with these; it hence creates new legislations and international developments in the relative advantages. Furthermore, if these rules and sphere of CSR will most likely emerge. This is particularly guidelines are observable for stakeholders and perceived as important with respect to P as what is undisputed with effective, they are expected to improve the image of the regard to CSR contents depending on contexts and thus SCGC. However, these supplements have to be designed in might change over time. coordination with the accredited third-party audit organi- Audit organizations are another type of SCGC institu- zation and other stakeholders through the SCGC board in tions. Employment of accredited and independent audit order to preserve compatibility and simplicity. organizations guarantees an effective enforcement of the As a means for contextualization, we also propose the SCGC and adds high contextual (i.e., industry-specific, development of an implementation handbook with guid- regional, and cultural) expertise in the field of social ing positive and negative examples for each principle. auditing. Thus, the audit organization ensures the full Together with the (abstract) principles, the incorporation coverage of contents, their specificity, and timeliness, as of an audit organization and the CMM, the implemen- well as global applicability. Without this, the SCGC would tation handbook is supposed to ensure global applicabil- lose almost all factors relevant for a successful diffusion ity. The handbook might help firms to better understand according to DOI. the abstract principles and to learn to apply them in Furthermore, it is advisable to seek out a renowned different cultures and contexts. Examples of how to react International Organization. Its only function is to act as a in ethical dilemmas foster the development of ethical Sanction SCGC Preamble Rules Board fosters discourse & amends normative ensure ongoing development perspective compliance enable Content provides contextual Audit Audit applicability expertise & (primarily expressed within varying Organization Guidelines enforces principles in principles) contexts fosters competition facilitates integrates increases decreases level through supply chain existing reputation of abstraction transparency diffusion initiatives Support Capability Maturity Implementation Organization Model (CMM) Handbook Fig. 5 Proposed SCGC design solution overview 123 Logist. Res. (2013) 6:187–216 211 intuitions [63] and thereby increase the trialability and 7 Conclusion simplicity of the SCGC. Being aware of the threat industry specifications pose to an intended global stan- Reconciling profit maximization and social responsibility dard, these are regarded as an optional amendment to the is one of the most challenging tasks today for firms. To design concept which could be further investigated in date, a product’s lifecycle and its environmental and social future works. footprints are influenced by many different firms. Thus, The ultimate Fig. 5 depicts the proposed SCGC design effective governance toward substantially higher CSP concept in its entirety. levels increasingly has to transcend the corporate sphere of control and integrate ethical supply chain management. In Table 6 gives a concluding overview over the require- ments which we derived from theory (DOI and code-rela- our study, we show how a standardized supplier code of ted literature) and those which were extracted within the ethics, which we refer to as SCGC, might be beneficial to discussions and interviews with corporate experts and links firms and CSR-interested parties, alike. Most importantly, these with the proposed SCGC design concept. The design it can be expected to improve CSP throughout supply concept fulfills all of these requirements. chains. Our main contribution in this paper consists of a Table 6 Linkage of SCGC requirements and proposed design concept Requirement Origin Implementation Content coverage, Theory (Abstract) principles as presented in the review cover all relevant topics specificity, and (DOI and Literature) and Audit organization contextualizes abstract principles incorporation of other corporate experts SCGC board and audit organization ensure completeness and actuality in the long run initiatives CMM enables optional inclusion of additional well-known initiatives, (industry-) specific codes and standards at different aspiration levels Inclusion and coordination Theory Consideration of stakeholders’ views in the development process of the design of stakeholders concept (DOI and Literature) SCGC board allows for inclusion and coordination of stakeholders in developing and advancing the SCGC Communication and Theory SCGC board enables communication, coordination and institutionalization of trainings trainings with regard to the SCGC (DOI and Literature) Implementation handbook helps to contextualize principles Global applicability Theory Integration of experts’ pristine views in Germany, China and India during the development process of the design concept (DOI and Literature) (Abstract) principles together with implementation handbook, incorporation of audit organization, and CMM ensure global applicability CMM enables optional inclusion of more (industry-)specific codes Enforcement system with Theory Audit organization and SCGC board together with stakeholders develop a standardized procedures sophisticated standardized enforcement system (DOI and Literature) and corporate experts Clear audit guidelines and sanction rules that are formulated and applied to all adopters strengthen the enforcement Observability Theory CMM enables observability of the contents, processes, and results of the SCGC (DOI and Literature) Adopters are obliged to publish their CSP according to the SCGC Publication of the design concept in Logistics Research Internal and external Corporate experts Well-respected support organization helps to convince managers to adopt the SCGC support CMM fosters reputational benefits, decreases procedural costs and diminishes CSR- related risks Rules versus values Corporate experts Preamble serves as a value-oriented counterpart to the rather compliance-oriented orientation principles Preamble leaves room for normative demands, that allow the SCGC to be more than a minimum standard Preamble refers to shared values and is supposed to create a common identity of adopters of the SCGC 123 212 Logist. Res. (2013) 6:187–216 Table 6 continued Requirement Origin Implementation Learning process Corporate experts CMM offers different aspiration levels that consider CSR as a learning process and reflect different levels of CSP SCGC board enables communication, coordination and institutionalization of trainings with regard to the SCGC SCGC board is able to adjust the content to future CSR-related developments Implementation handbook helps to contextualize principles Supply chain perspective Corporate experts CMM incorporates buying firms’ suppliers from certain aspiration levels on CMM avoids the dilemma of full synchronal SCGC adoption by all firms proposal of a design concept for the SCGC. The design An important barrier to the SCGC design that merits concept is developed out of a two-phase research process special attention in this conclusion is context specificity. that integrates content analysis and design science. It pro- National culture, level of socio-economic development, vides clear answers to the research questions posed at the industry, and firm size were identified as hampering factors outset: (1) The content that reasonably could be covered by to the aspired context-independent applicability of the the SCGC is a synthesis of those CSR topics that are SCGC. Having conceived multiple unsatisfactory alterna- established in the literature and extant codes. Content tives, we propose context dependence of performance should primarily be expressed in behavior-guiding princi- evaluation as a creative response to context dependence of ples. However, given the relative consensus on appropriate performance aspiration levels. Thus, the SCGC manage- code content, content is likely—and somewhat surpris- ment system is designed in such a manner that it takes ingly—not what determines SCGC success, i.e., adoption highly decentralized and context-specific knowledge of and effectiveness. Success is rather ensured through the context experts and auditors into account. This feature is SCGC management system which is to be built around the built into the CMM and also triggers the formulation of SCGC core modules. (2) The most important mechanism rather abstract principles, the incorporation of a value- for diffusing the SCGC into business practice is a CMM. oriented preamble, and the creation of an inspiring imple- As it offers the opportunity to include many adopters mentation handbook. located in the range between early adopters and laggards, it In terms of methodology, the employed multi-method helps to overcome the initial quantity–quality dilemma of approach, in particular the design science phase was found potential adopters. Furthermore, it fosters CSP competition to have been highly useful to achieve our research objec- among firms through observability. Through the rankings tives. We suggest that not only logistics research and of the CMM, firms’ CSP will be comparable, and poorly business ethics research, but also other research in the ranked firms are expected to strive for CSP improvements. fields of business and management employs design science The danger of constantly being blamed by stakeholders and more often. Given that the corporate and social reality is competitors due to low ranking conveys a threat of repu- still frequently characterized by a lack of CSR and CSP, tational damages and being sanctioned by customers [19]. design science as a change-facilitating methodology could Moreover, by integrating suppliers at its higher levels, the be taken advantage of, more systematically. CMM comprises a mechanism for using CSP differentials However, it is conceded that design science also entails to the benefit of socially irresponsible firms and, especially, a limitation in that the results of this research are more countries. Thus, the CMM also complies with the concept strongly impacted by individuals involved in the research of CSR as a continuous learning process. (3) The SCGC process than is usually the case. To limit the extent of this can become an effective standard if and only if it (a) pro- influence, we tried to avoid systematic cultural bias by vides clearly visible relative advantage, such as reputa- involving experts from Germany, China, as well as India. tional benefits, to firms so that the top management is In total, 34 managers with different functional backgrounds committed to adopt the SCGC or if (b) firms are pushed by from 20 internationally operating firms provided their their customer firms (or other stakeholders) to adopt the perspectives and acted as critical counterparts throughout SCGC, to maintain or even increase their share of wallet this project. Further, within the financial and temporal with those customers. SCGC effectiveness is further fos- constraints of a project-based research initiative, we could tered through the specificity of the content, through the not actively collaborate with all of the possibly relevant enforcement system, and through communications and actors, at the same time. As we anticipate firms to be the trainings. These factors are also fostered and facilitated by most important category of actors for this voluntary ini- the SCGC management system. tiative, we concentrated on cooperating with them, in a first 123 Logist. Res. (2013) 6:187–216 213 8. Bradford M, Florin J (2003) Examining the role of innovation step, while we sought to at least consider the interests and diffusion factors on the implementation success of enterprise positions of all other actors. As a result, we propose this resource planning systems. Int J of Acc Inf Sys 4(3):205–225 first SCGC design concept to the scientific community, as 9. 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Logistics Research – Springer Journals
Published: Oct 11, 2013
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