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Purpose – This article investigates how buying firms manage their lower tier sustainability management (LTSM) in their supply networks and what contextual factors influence the choice of approaches. As most of the environmental and social burden is caused in lower tiers we use the iceberg analogy. Design/methodology/approach – Findings from 12 case studies and 53 interviews, publicly available and internal firm data are presented. In an abductive research approach, Transaction Cost Economics (TCE) conceptually guides the analytical iteration processes between theory and data. Findings – This study provides eight LTSM approaches grouped into three categories: direct (holistic, product-, region-, and event-specific) indirect (multiplier-, alliance-, and compliance-based) and neglect (tier-1-based). Focal firms choose between these approaches depending on the strength of observed contextual factors (stakeholder salience, structural supply network complexity, product and industry salience, past supply network incidents, socio-economic and cultural distance and lower tier supplier dependency), leading to perceived sustainability risk (PSR). Research limitations/implications – By depicting TCE’s theoretical boundaries in predicting LTSM governance modes, the theory is elevated to the supply network level of analysis. Future research should investigate LTSM at the purchasing category level of analysis to compare and contrast PSR profiles for different purchase tasks and to validate and extend the framework. Practical implications – This study serves as a blueprint for the development of firms’ LTSM capabilities that suit their unique PSR profiles. It offers knowledge regarding what factors influence these profiles and presents a model that links the effectiveness of different LTSM approaches to resource intensity. Originality/value – This study extends the application of TCE and adds empirically to the literature on multi-tier and sustainable supply chain management.

Sustainable supply chain management has developed at an exponential rate into a distinct research field, but its progress towards sustainability is rather modest, and a coherent theoretical foundation for guiding companies towards a stronger integration of sustainability into their operations and supply chains is still missing. This article outlines how the tradition of critical management studies could foster higher levels of sustainable business and sustainable supply chains. We argue that the underlying instrumental logic of contemporary corporate engagement with sustainability, driven by stakeholder pressures, is a key obstacle when aiming for ‘truly’ sustainable supply chains. Referring to a recognition perspective may dissolve the reified pursuit of profit-seeking and other merely economic performance targets to recall the genuine—and in its essence truly radical—claim that the concept of sustainable development is inherently a normative one imposed on all of us. Recognition may lead the way for companies to adopt a caring stance for people and the surrounding environment and to respond to the legitimate expectations of all groups in society while conceiving themselves as an integral part of such a society. We conclude by discussing how far the theoretical perspective of recognition is enrooted in the European tradition of institutionalised business–society relationships and therefore could be seen as a rediscovery of a genuinely European way of making business and managing supply chains.

Buying firms are increasingly confronted with compliance scandals in their upstream supply chain, for which they are held accountable by their stakeholders. Purely symbolic practices, typically referred to as greenwashing, as well as substantive practices, such as green supplier championing, are thus receiving widespread attention in business practices and academia alike. In this study, we reveal the impact of two opposing leadership dimensions following the concepts of ethical and transactional leadership as antecedents for green supplier championing and greenwashing. We particularly address whether these antecedents have a complementary or a counterproductive effect on green supplier championing and greenwashing. Furthermore, we investigate the complementary impact of incentives and the two leadership styles on achieving sustainability behavior. The resulting model is tested using a path analysis based on a data set of 118 firms located in Germany. We find support for the positive impact of ethical leadership on green supplier championing but also a non-significant negative impact on greenwashing. Greenwashing is significantly impacted by leadership styles reflecting obedience to authority, and further moderated by ethical incentives. Interestingly, ethical incentives do not moderate the impact of ethical leadership on green supplier championing. Finally, we discuss implications for theory and business practice.

Purpose – The purpose of this paper is to investigate how buying firms facing low supply chain visibility can utilize their stakeholder network to identify salient supply chain sustainability risks (SCSR). Design/methodology/approach – The study employs a design science approach to develop a procedural model for identifying SCSR as a new artifact. A small-scale field-testing study in a food supply chain of a Swiss retail firm demonstrates its applicability and pragmatic validity. Findings – When stakeholder knowledge external to the supply chain is regarded as a valuable resource, a generic understanding of a buying firm’s supply chain suffices to identify SCSR hotspots without creating complexity for the SCSR management. Research limitations/implications – The paper contributes to the study of SCSR by identifying mechanisms buying firms can employ to identify SCSR hotspots and fostering the nascent understanding of responsibility attribution by stakeholders. Moreover, the emerging theory of the supply chain is enriched by paving a way to extend the supply chain visibility boundary. The procedural model is presumably most useful in contexts of elevated stakeholder pressure and low supply chain visibility. Future research should seek to validate and improve the effectiveness of the newly designed artifact. Practical implications – The procedural model is directly applicable in corporate practice to the identification of SCSR. Moreover, its application fosters the understanding of a firm’s supply chain and its stakeholder network.originality/value – SCSR is an increasingly important phenomenon in corporate practice that has received only scarce research attention. The design science approach represents a valuable means for generating theoretical insights and emergent solutions to the real-world problem of SCSR identification.