EconPapers    
Economics at your fingertips  
 

The Dark Side of Buyer Power: Supplier Exploitation and the Role of Ethical Climates

Martin C. Schleper, Constantin Blome () and David A. Wuttke
Additional contact information
Martin C. Schleper: EBS University for Business and Law
Constantin Blome: University of Sussex
David A. Wuttke: EBS University for Business and Law

Journal of Business Ethics, 2017, vol. 140, issue 1, 97-114

Abstract: Abstract Media increasingly accuse firms of exploiting suppliers, and these allegations often result in lurid headlines that threaten the reputations and therefore business successes of these firms. Neither has the phenomenon of supplier exploitation been investigated from a rigorous, ethical standpoint, nor have answers been provided regarding why some firms pursue exploitative approaches. By systemically contrasting economic liberalism and just prices as two divergent perspectives on supplier exploitation, we introduce a distinction of common business practice and unethical supplier exploitation. Since supplier exploitation is based on power, we elucidate several levels of power as antecedents and investigate the role of ethical climate as a moderator. This study extends Victor and Cullen’s (1988) ethical climate matrix according to a supply chain dimension and is summarized in an integrated, conceptual model of five propositions for future theory testing. Results provide a frame of reference for executives and scholars, who can now delineate unethical exploitation and understand important antecedents of the phenomenon better.

Keywords: Economic liberalism; Ethical climate; Fairness; Just prices; Power; Supplier exploitation; Supply chain management (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10551-015-2681-6 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:140:y:2017:i:1:d:10.1007_s10551-015-2681-6

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10551/PS2

Access Statistics for this article

Journal of Business Ethics is currently edited by Michelle Greenwood and R. Edward Freeman

More articles in Journal of Business Ethics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-05-25
Handle: RePEc:kap:jbuset:v:140:y:2017:i:1:d:10.1007_s10551-015-2681-6