Resource dependencies and the legitimatization of grocery retailer’s social evaluations of suppliers
Gorton, Matthew Kastenhofer, Klaus Lemke, Fred Esquivel, Luis Nicolau, Mariana
Gorton, Matthew
Kastenhofer, Klaus
Lemke, Fred
Esquivel, Luis
Nicolau, Mariana
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Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2024
Journal
Journal of Business Ethics
Book
Publication Volume
192
Publication Issue
Publication Begin page
729
Publication End page
744
Publication NUmber of pages
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Abstract
Multinational corporations (MNCs) are increasingly judged not only on their own social impacts but also on those of their supply chain partners. To reduce this environmental dependence, many MNCs implement social evaluations and codes of conduct which suppliers must follow. But how do MNCs legitimise and implement social evaluations in their supply chains? To address this, we draw on and augment resource dependence and legitimacy theories, to analyse a multinational grocery retailer’s implementation of labour standards for its fruit and vegetable suppliers. The case study utilises interviews, analysis of a database of audits, internal documents, and observational data. It provides the basis for theorizing corporate reputation as a resource dependency, with social evaluations a distinct means to co-opt external actors to preserve the focal organization’s autonomy while reducing environmental contingencies. The legitimacy of social evaluations of supply chain partners depends on processes that reconcile both moral and pragmatic concerns, allowing the focal organization to mitigate resource dependencies without ceding control over enforcement and enabling actions.
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Keywords
Multinational Organizations, Resource Dependency Theory, Social Evaluation