CEO ACTIVISM AND SUPPLY CHAIN INTERACTIONS

CEO ACTIVISM AND SUPPLY CHAIN INTERACTIONS In this paper we demonstrate that hiring a manager with a propensity to over‐invest in socially and environmentally responsible production can increase firm profits if customers not only care about the responsible behavior of the market firm but also about the engagements of all players along the firm's supply chain. The new mechanism we identify relies on the complementarity of investments by the firm and its suppliers. We demonstrate that CEO activism of this kind might cause a win‐win outcome where all parties along the supply chain, the firm's customers and society can be better off. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Annals of Public and Cooperative Economics Wiley

CEO ACTIVISM AND SUPPLY CHAIN INTERACTIONS

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Publisher
Wiley
Copyright
Journal compilation © 2018 CIRIEC
ISSN
1370-4788
eISSN
1467-8292
D.O.I.
10.1111/apce.12195
Publisher site
See Article on Publisher Site

Abstract

In this paper we demonstrate that hiring a manager with a propensity to over‐invest in socially and environmentally responsible production can increase firm profits if customers not only care about the responsible behavior of the market firm but also about the engagements of all players along the firm's supply chain. The new mechanism we identify relies on the complementarity of investments by the firm and its suppliers. We demonstrate that CEO activism of this kind might cause a win‐win outcome where all parties along the supply chain, the firm's customers and society can be better off.

Journal

Annals of Public and Cooperative EconomicsWiley

Published: Jan 1, 2018

Keywords: ; ; ; ; ; ;

References

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