Managing Supply Chain Risk: Reputational – Ethical – Environmental - Legal

13 Pages Posted: 26 Oct 2015 Last revised: 9 Feb 2018

See all articles by Laurence Cranmer

Laurence Cranmer

University of Oxford - Said Business School

Steve New

Said Business School

Date Written: November 29, 2012

Abstract

In this short report we explore some key aspects of supply chain risk. Drawing on interviews with seven major UK-based companies in the construction, property, utilities and rail sectors, we review companies’ approaches to ‘REEL’ supply chain risks: reputational, ethical, environmental and legal. These risks arise where the actions of a supplier may damage its customer – even if the customer is separated from the supplier by several links in the chain.

Examples of this kind of risk include the reputational damage inflicted on a firm when one of its suppliers is found to be illegally or unduly damaging the environment, or hiring illegal labour, or engaging in some other breach of acceptable business practice. Fairly or unfairly, large companies may be held to account as if they were the culpable party, and are seen as sharing at least some of the responsibility for the supplier’s behaviour.

What firms should actually do in the face of these challenges remains unclear. By exploring these issues we suggest a series of insights that may help organizations navigate this complex terrain.

Keywords: Supply chain risk, managing supply chain risk, supplier management, corporate responsibility

Suggested Citation

Cranmer, Laurence and New, Steve, Managing Supply Chain Risk: Reputational – Ethical – Environmental - Legal (November 29, 2012). Saïd Business School WP 2018-04. Available at SSRN: https://ssrn.com/abstract=2678065 or http://dx.doi.org/10.2139/ssrn.2678065

Laurence Cranmer (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Steve New

Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain
01865 288800 (Phone)

HOME PAGE: http://www.sbs.ox.ac.uk/community/people/steve-new

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