Balancing Control and Trust to Manage CSR Compliance in Supply Chains
2017 (English)In: International Journal of Supply Chain Management, ISSN 2051-3771, Vol. 6, no 2Article in journal (Refereed) Accepted
This study examines how buyers and suppliers balance control and trust to manage compliance with corporate social responsibility (CSR) requirements in supply chains (SCs). Two in-depth, qualitative case studies of the Bangladesh apparel industry on two multinational companies of the same European country were conducted. This study indicates that a buyer’s need for control and trust is important in contact with other actors for managing CSR compliance. Formal control is found to generate competence trust, whereas intentional trust is achieved through informal control. Intentional trust is helpful for competence and capacity development, but for it to continue the supplier needs to fulfill the buyer’s expectations. Competence of the supplier is viewed as a prerequisite for developing competence trust. This study analyzes control and trust to fill an important gap in SC theory on relationships by stressing how these constructs interact and complement each other to manage CSR compliance in apparel industry. Firms must focus on a balanced relationship between trust and control to manage CSR compliance. Willingness to collaborate can only work when supplier competence and managerial resources are ensured. This study notes that managers need both formal and informal control to create competence and intentional trust in the supply chains. Capacity building is viewed as a complement, not an alternative to CSR compliance. With its closer attention to control and trust, this study fills an important gap in SC theory on relationships by stressing how these constructs interact and complement each other for managing CSR compliance in supply chains.
Place, publisher, year, edition, pages
United Kingdom: exceling Tech Publishers , 2017. Vol. 6, no 2
Supply chain management, Buyer-supplier relationships, Trust, Corporate responsibility, Clothing industry
IdentifiersURN: urn:nbn:se:hig:diva-23873OAI: oai:DiVA.org:hig-23873DiVA: diva2:1088222