The effect of controversial global sourcing practices on the ethical judgments and intentions of U.S. consumers |
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| Institution: | 1. Department of Industrial Management, Alborz Campus, University of Tehran, Tehran, Iran;2. School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran;3. Driehaus College of Business, DePaul University, Chicago, USA;1. Head of Marketing Oncology, Merck Serono GmbH, Darmstadt, Germany;2. Professor for Procurement & Quality Management, University of Applied Sciences Aschaffenburg, Germany;3. Professor of Logistics and Quantitative Methods, Julius-Maximilians-University Würzburg, Germany;4. Research Associate Chair of International Marketing, University of Vienna, Austria;5. Professor of Supply Chain & Operations Management, Mainz University of Applied Sciences, Lucy-Hillebrand-Str. 2, 55128, Mainz, Germany;6. Visiting Professor at Department of Strategy & Innovation, Copenhagen Business School (CBS), Denmark;1. Department of Anthropology, University of California, Los Angeles, CA, U.S.A.;2. The Roslin Institute and Royal (Dick) School of Veterinary Studies, The University of Edinburgh, Midlothian, Scotland, U.K.;3. Department of Anthropology, University of Missouri, Columbia, MO, U.S.A.;4. Behavior, Evolution and Culture Program, University of California, Los Angeles, CA, U.S.A.;1. David D. Reh School of Business, Clarkson University, Potsdam, NY, 13699, USA;2. Department of Supply Chain Management, Fisher College of Business, The Ohio State University, Columbus, OH, 43210, USA;3. Department of Supply Chain Management, Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR, 72701, USA |
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| Abstract: | Global sourcing has led to lower cost and more effective supply chains for many companies. However, when the cost-driven practices of many suppliers in these chains come to light there is often considerable debate over the ethics of these practices. This research uses the well-known Hunt–Vitell framework as the theoretical foundation for a structural equation model of the deontological and teleological evaluations used by consumers when making ethical judgments of a firm's controversial cost-driven global sourcing practices. Data from a large-scale U.S. consumer survey show the importance of deontological and teleological evaluations in forming consumers’ ethical judgments of global sourcing practices, and establish a strong relationship between ethical judgment and the intention of consumers to alter consumption of a firm's products. Extensions to the framework and demographic analyses for age, gender, and income provide insights as to how perceptions of these practices affect consumer evaluations of a company involved in global sourcing and how consumers actualize their resultant intentions. |
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| Keywords: | Global sourcing Consumer intentions Ethical judgment Hunt–Vitell Structural equation modeling |
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