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Teaching reputational risk management in the supply chain

Lemke, Fred and Petersen, Henry (2013) Teaching reputational risk management in the supply chain. Supply Chain Management: An International Journal, 18 (4). ISSN 1359-8546

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Abstract

The objective of this paper is to offer educators a framework for teaching on the effective management of reputational risks in the supply chain. The literature describing the theoretical nature of reputation, reputational risk and corporate social responsibility is evaluated to generate an educational instrument that provides: a) the theoretical justifications for educating managers on what reputational risks are, b) the practical management tools for mitigating reputational risks by adopting corporate social responsibility, and c) to assist the instructor in navigating through the detailed teaching plan. Corporate social responsibility has become one of the most important managerial trends of our time. When blended with corporate reputation and risk management, an exciting managerial intersection emerges that has the potential to add value to supply chain management. The article provides educators with a detailed teaching plan on the practical management tools for mitigating reputational risks through the adoption of corporate social responsibility. The final discussion points to an understanding that carries great theoretical and practical promise and leads to implications for theory builders and practitioners. Business’ social responsibilities extend to the supply chain and its members. The infusion of CSR in the supply chain increases the likelihood of improved performance. Even more importantly, it increases the probability that businesses will be more responsible and have a positive social, environmental and economic impact on society. The article merges contemporary business topics in a supply chain context in a creative fashion and equips educators with the tools to disseminate the valuable knowledge in a business school environment. The examination and provision of a teaching guide for mitigating reputational risk in the supply chain, utilizing Corporate Social Responsibility, is novel and important to understand for existing and future managers.