Firm seeking to avoid supply chain-related risks to its reputation might think the wisest course of action would be to sever ties with producers revealed to be guilty of environmental or social misdeeds
While it has long been known that corporations face reputational risk related to their own operations and the behaviour of their employees, they are increasingly being held to account for the operations and behaviour of their suppliers as well – a fact recently brought home by the collapse of the Rana Plaza garment factory building in Bangladesh. Research Fellow Amanda Moss Cowan looks at the implications.
[This article has been reproduced with permission from Said Business School, University of Oxford. The article originally appeared in the School e-magazine, THEWORLD@OxfordSaid. http://www.sbs.ox.ac.uk]