Perceptions of stakeholder pressure for supply-chain social responsibility and information disclosure by state-owned enterprises

• DOI: https://doi.org/10.1108/IJLM-05-2016-0118
• Pages: 1027-1053
• Published date: 13 November 2017
• Date: 13 November 2017
• Author: Raquel Garde Sánchez,Manuel Pedro Rodríguez Bolívar,Antonio M. López Hernández
• Subject Matter: Management science & operations,Logistics

Perceptions of stakeholder

pressure for supply-chain social

responsibility and information

disclosure by state-owned

enterprises

Raquel Garde Sánchez and Manuel Pedro Rodríguez Bolívar

Department of Accounting and Finance,

Universidad de Granada –Campus de Cartuja, Granada, Spain, and

Antonio M. López Hernández

Universidad de Granada –Campus de Cartuja, Granada, Spain

Abstract

Purpose –The purpose of this paper is to analyse the influence of perceptions of pressurefrom stakeholders

on the managers of state-owned enterprises (SOEs) regarding the need to implement socially responsible

policies in the supply chain and to disclose corporate social responsibility (CSR) information. The authors also

analyse the benefits perceived by public managers from applying CSR in the supply chain and from the

greater disclosure of CSR information.

Design/methodology/approach –A structured questionnaire was developed, based on a set of items

related to aspects of CSR, and taking into account previous research in this field. The authors also propose a

theoretical model with which to analyse relations among the variables studied. This model was verifiedusing

structural equation modelling.

Findings –The results obtained are consistent with the proposed model and show that stakeholder pressure

has a direct influence on the CSR policies applied by public managers regarding suppliers and information

disclosure. The authors also find that public managers believe that applying socially responsible policies in

their dealings with suppliers will benefit their business.

Originality/value –Although the question of CSR has been widely debated in the context of private

business, very little research has addressed this question in the public sphere, especially in that of SOEs,

regarding the practice of socially responsible management with suppliers. Aspects of social responsibility

towards suppliers are of considerable importance and some complexity, particularly in public enterprises,

which are sometimes the main or only consumer. A better understanding of the connections between these

constructs will allow corporate decision makers, particularly those in public companies, to devise appropriate

strategies for social responsibility in the supply chain and for the disclosure of CSR information, and thus

incorporate stakeholders’expectations into the design of these strategies.

Keywords Survey methods, Corporate social responsibility, Structural equation modelling,

State-owned enterprises, Supplier policies and procedures

Paper type Research paper

1. Introduction

Over the past decade, the question of corporate social responsibility (CSR) has become

increasingly significant in business organisations (Peterson, 2006), being associated with

financial benefits (Margolis and Walsh, 2001), enhancing the company’s image and

reputation (Chen and Tsai, 2007) and contributing to legitimising company actions.

However, although this aspect has been widely debated in the context of private business,

very little research has addressed the question of CSR in the public sphere (Roper and

Schoenberger-Orgad, 2011; Córdoba Pachón et al., 2014; Rodríguez Bolívar et al., 2015).

Within the public sector, state-owned enterprises (SOEs), whose main function is to

accomplish public policy objectives (Cunningham, 2011), such as providing services to

The International Journal of

Logistics Management

Vol. 28 No. 4, 2017

pp. 1027-1053

© Emerald PublishingLimited

0957-4093

DOI 10.1108/IJLM-05-2016-0118

Received 10 May 2016

Revised 16 October 2016

Accepted 1 December 2016

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0957-4093.htm

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Perceptions of

stakeholder

pressure

society (Heath and Norman, 2004), and not necessarily to achieve financial returns

(Cunningham, 2011), deserve special mention. SOEs are viewed as instruments to correct

market failures and/or to promote production or the creation of employment. Therefore,

aspects of social responsibility play a leading role in these organisations’concerns, and

socially responsible policies implemented by SOEs would represent an important example

for society as a whole (Heath and Norman, 2004).

According to the Commission of the European Communities, CSR is “the responsibility of

enterprises for their impacts on society”(European Commission, 2011). Furthermore,

“enterprises should have in place a process to integrate social, environmental, ethical,

human rights and consumer concerns into their business operations and core strategy in

close collaboration with their stakeholders”(European Commission, 2011, p. 6).

The social responsibility of business encompasses many areas. Among these, a topic of

increasing interest is the relationship with suppliers in terms of “green”procurement and

supply management (Green et al.,1996;Newet al., 2002; Walker et al., 2008; Reuter et al., 2010;

Alexander et al., 2014). Studies in this field have also examined environmental purchasing

(Carter and Carter, 1998; Drumwright, 1994; Carter and Dresner, 2001) and human rights issues

with respect to suppliers (Emmelhainzand Adams, 1999; Asif Salam, 2009) from different

perspectives, noting that these issues also affect company costs (Carter, 2005; Asif Salam, 2009).

Therefore, aspects of social responsibility towards suppliers are of considerable importance

and some complexity (Hartley, 1991; New et al., 2002), especially in the case of public enterprises,

which are sometimes the main or only customer for some suppliers, for example, in the defence

industry or in public health services (New et al.,2002).Inthissense,organisationsmustmake

decisions and take actions within their supply chain in order to relieve the pressure exerted by

stakeholders (Wolf, 2014). However, knowing exactly how to manage and do business under the

principles of social responsibility is no easy matter (Pedersen, 2011). Moreover, in the case of

public companies, little research in this specific regard has been conducted.

Companies are taking an increasing interest in aspects of CSR and have widely

disclosed such actions, in response to stakeholder pressure. Thus, companies not only

adopt CSR as part of their mission and strategies but also communicate the CSR actions

being carried out (Garde Sánchez et al., 2013a, b; Rodríguez Bolívar et al., 2013). In this

way, companies that address the interests and needs of stakeholders further legitimise

their actions (Deegan, 2002; Deephouseand Carter, 2005; Casteloand Lima, 2008;

Garde Sánchez et al., 2013a, b; Rodríguez Bolívar et al., 2013).

During the last two decades, CSR information has been widely disclosed because

companies are aware of society’s interest in these questions and need for information about

them (Deegan and Gordon, 1996; Hooghiemstra, 2000; Reverte, 2009). Numerous studies

have analysed the CSR information disclosed and the factors that determine disclosure,

particularly that of financial information (Oyelere et al., 2003).

The communication of CSR policies is a strategic approach that enables companies

to create a strong identity, maintain favourable relations with stakeholders and enhance

the company’s reputation (Nielsen and Thomsen, 2009; Garde Sánchez et al., 2013a, b;

Rodríguez Bolívar et al., 2013).

In view of these considerations, the aim of this paper is to analyse the influence of

stakeholders on the managers of SOEs regarding the need to implement socially responsible

policies focused on suppliers and to disclose CSR information. In addition, we analyse the

benefits that public managers expect their companies to perceive from acting in a socially

responsible manner with respect to their supply chain, and from disclosing CSR

information. A better understanding of the connections between these constructs will enable

corporate decision makers, particularly those in public companies, to devise appropriate

CSR strategies for their supply chain, to effectively disclose CSR information, and to better

integrate stakeholders’expectations into the design of these strategies.

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