Supplying risk: mitigating risks to sustainability caused by suppliers using agency theory

It has now become clear that all organizations that want to succeed in the global market place have to embrace sustainability and significantly ramp up corporate social responsibility (CSR) initiatives. Tracing back to the most recent highly publicized environmental corporate disaster – BP's Deepwater Horizon oil spill – we can see a concerted effort on the part of organizations around the world to, at the very least, appear CSR aware and sustainability conscious. Yet appearances are no longer enough, and the intent of an organization to be sustainable now has to change to action. There is significant pressure coming from...