Conference Programme
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available). Note that the schedule is subject to changes.
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Daily Overview |
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Research Sketches 2: Sustainability Disclosure & Reporting Location: Auditorium (Level 1) Session Chair: Mike Toffel, Harvard Business School | |
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The Role of Environmental and Social Clauses in Supply Contracts 1: London School of Economics; 2: Singapore Management University, Singapore; 3: University of Bristol This paper examines the use of environmental and social (E&S) clauses in supply contracts as an important tool for corporate customers to monitor and influence suppliers’ E&S practices. Using a hand-collected sample of supply contracts, we find a substantial proportion of contracts include clauses mandating compliance, disclosure, inspection, and training related to suppliers’ E&S practices. Customer reputational concerns, relationship-specific investments, and regulatory pressures significantly influence the inclusion of these clauses. Moreover, E&S clauses more directly associated with customer monitoring, specifically inspection and training requirements, are negatively related to suppliers’ future E&S incidents. This association is more pronounced for corporate customers with higher E&S exposure, indicating that the benefits of proactive supplier monitoring through E&S clauses are greater for customers with elevated reputational risks. Overall, our evidence supports the view that E&S clauses in supply contracts serve as an important mechanism for customers to exert influence on suppliers’ E&S practices. | |