Abstract

http://ssrn.com/abstract=2343802
 
 

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Monitoring Global Supply Chains


Jodi L. Short


University of California Hastings College of the Law

Michael W. Toffel


Harvard Business School (HBS) - Technology & Operations Management Unit

Andrea Hugill


Harvard Business School

March 2, 2015

Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 14-032
UC Hastings Research Paper No. 84

Abstract:     
Outsourcing firms seeking to avoid reputational spillovers that can arise from dangerous, illegal, and unethical behavior at supply chain factories increasingly rely on private social auditors to provide strategic information about the conduct of their suppliers. But little is known about what influences auditors’ ability to identify and report poor supplier conduct. We find that individual supply chain auditors’ monitoring practices are shaped by social factors including their experience, gender, and professional training; their ongoing relationships with suppliers; and the gender diversity of their audit teams. Providing the first comprehensive and systematic findings on supply chain monitoring, our study identifies previously overlooked transaction costs and suggests strategies to develop governance structures to mitigate reputational spillover risks by reducing information asymmetries between themselves and their suppliers.

Number of Pages in PDF File: 49

Keywords: monitoring, transaction cost economics, industry self-regulation, auditing, codes of conduct, supply chains, corporate social responsibility, globalization


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Date posted: October 25, 2013 ; Last revised: March 4, 2015

Suggested Citation

Short, Jodi L. and Toffel, Michael W. and Hugill, Andrea, Monitoring Global Supply Chains (March 2, 2015). Harvard Business School Technology & Operations Mgt. Unit Working Paper No. 14-032; UC Hastings Research Paper No. 84. Available at SSRN: http://ssrn.com/abstract=2343802 or http://dx.doi.org/10.2139/ssrn.2343802

Contact Information

Jodi L. Short
University of California Hastings College of the Law ( email )
200 McAllister Street
San Francisco, CA 94102
United States

Michael W. Toffel (Contact Author)
Harvard Business School (HBS) - Technology & Operations Management Unit ( email )
Boston, MA 02163
United States
617.384.8043 (Phone)
Andrea Hugill
Harvard Business School ( email )
Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
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