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The dark side of buyer power: supplier exploitation and the role of ethical climates
journal contribution
posted on 2023-06-08, 21:05 authored by Martin Schleper, Constantin Blome, David A WuttkeMedia 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.
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Publication status
- Published
File Version
- Published version
Journal
Journal of Business EthicsISSN
0167-4544Publisher
Springer VerlagExternal DOI
Issue
1Volume
140Page range
97-114Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2015-06-12First Compliant Deposit (FCD) Date
2021-03-05Usage metrics
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