The Influence of Power on Manufacturers' Social Responsibility Towards Suppliers in Supply Chains

Abstract

Amid globalization and rising competition, corporate social responsibility (CSR) is recognized as a key factor in company sustainable development. However, there is a notable lack of attention in existing CSR literature about the issue of manufacturer-supplier power dependence. To bridge this gap, this study builds a supply chain network of listed companies, using the top five customers/suppliers information disclosed in the annual reports of A-share listed companies in China from 2010 to 2021, and tests the hypothesized relationships based on the resource dependence theory (RDT). The findings show that supply chain power has a negative impact on manufacturers' social responsibility toward supplier. Further analysis reveals that increased company visibility helps mitigate this negative relationship, while earnings pressure strengthens this effect. In addition, this relationship is more significant in low-competition, heavy-pollution industries, and in the maturity and recession stages of companies. This study contributes to a comprehensive understanding of the theoretical framework of CSR and enriches the understanding of the decision-making mechanisms behind manufacturers' behavior.