Socially Responsible Supplier Development Practices An Institutional Theory Approach

Abstract

The purpose of this paper is to study the factors that force suppliers to become socially responsible while taking into consideration the "institutional theory" as a lens. The methodology used for studying this phenomenon was an exploratory case study with inductive data analysis of the organization in the context of Pakistan. It is related to the outcome that can guide to understand, what specific factors motivate the suppliers to become socially responsible? The study also entails the ability for the society to know what factors can put pressure on suppliers to become socially responsible so that they can use these pressures to get quality products and also force suppliers to fulfill corporate social responsibility by helping the society. Since much research has been done from the buyer's perspective, while nothing has been done about the supplier‟s perspective so this study will give a 360-degree view of what factors drive adopting socially responsible practices. One thing is clear that institutional pressures do play a critical role in driving suppliers to become socially responsible. But the degree to which these pressures play their role varies at times. The managerial implication is that managers may better control the implementation of organizational practices for improving economic and social performance.