Supply Chain Responsibility and Sustainability

Abstract

Decisions made by supply chain managers have a far-reaching impact on the economic, environmental, and social performance of entire supply chains, even though many activities in the supply chain occur beyond the direct control of those managers. Some firms establish a line of moral disengagement, beyond which they distance themselves from the impact of the activities of the supply chain. This research addresses the question of why some managers choose to take responsibility for the sustainability of their supply chain, while others do not. We argue that the ethical predisposition and moral complexity of the individual employee moderates the interpretation of the drivers of sustainability, increasing or decreasing their ability to build a business case for supply chain responsibility. We also argue that ethical predisposition moderates the likelihood of a business case being enacted. We then discuss theoretical and managerial implications resulting from this finding.