Equal Employment Opportunity in Supply Chains

Production and Operations Management, forthcoming

37 Pages Posted: 14 Jun 2022 Last revised: 5 Mar 2024

See all articles by Ling Cen

Ling Cen

The Chinese University of Hong Kong

Yanru Han

Stevens Institute of Technology - School of Business

Jing Wu

The Chinese University of Hong Kong (CUHK) - CUHK Business School

Date Written: June 7, 2022

Abstract

The equal employment opportunity (EEO) policy is an essential component of workplace diversity, equity, and inclusion (DEI) practices. Using a novel workplace EEO measure based on the textual analysis of online job postings, we show a lead-lag pattern of EEO practice between principal customers and their dependent suppliers. The lead-lag effect is more pronounced when principal customers enjoy a stronger bargaining power, consistent with the view that dependent suppliers adjust EEO policies catering to the preferences of their customers. We use the Big Three's Diversity Campaign in 2017 as our main identification strategy to support a causal interpretation. We show that the diffusion of EEO policies along supply chains generates real economic outcomes in terms of improving the likelihood of sales growth and female employee retention, implying the presence of social benefits besides economic advantages associated with the diffusion of workplace EEO practices along supply chains.

Keywords: supply chain management, equal employment opportunity (EEO)

Suggested Citation

Cen, Ling and Han, Yanru and Wu, Jing, Equal Employment Opportunity in Supply Chains (June 7, 2022). Production and Operations Management, forthcoming, Available at SSRN: https://ssrn.com/abstract=4129930 or http://dx.doi.org/10.2139/ssrn.4129930

Ling Cen

The Chinese University of Hong Kong ( email )

CYT Building
Sha Tin
Hong Kong, Hong Kong
Hong Kong

HOME PAGE: http:///sites.google.com/site/cenling/

Yanru Han

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Jing Wu (Contact Author)

The Chinese University of Hong Kong (CUHK) - CUHK Business School ( email )

Cheng Yu Tung Building
12 Chak Cheung Street
Shatin, N.T.
Hong Kong

HOME PAGE: http://www.jingwulab.org

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