Abstract
This article analyses supplier–buyer relationships where the suppliers adapt to the buyers’ needs and expectations to gain mutual advantages. In some cases, such closely knit relationships lead to violations of the autonomy of one or both partners. A concept of corporate autonomy (CA) is developed to analyze this problem. Three different facets can be distinguished: rule autonomy, executive autonomy, and control autonomy. A case study of Mattel’s problems with lead-contaminated toys produced in China shows that the CA of buyer and supplier can be restricted as a result of a dysfunctional partnership involving a moral dilemma.
Similar content being viewed by others
References
Anonymous: 2007, ‘Dangerous Chinese Toys: Exactly who is to Blame?’, http://angrychineseblogger.blog-city.com/dangerous_chinese_toys_exactly_who_is_to_blame.htm. August 28, 2007.
Barboza, D.: 2007a, ‘Owner of Chinese Toy Factory Commits Suicide’, The New York Times, August 14, 2007.
Barboza, D.: 2007b, ‘Mattel Said to Plan 2nd Toy Recall’, The New York Times, August 14, 2007.
Barboza, D.: 2007c, ‘Scandal and Suicide in China: The Dark Side of Toys’, The New York Times, August 23, 2007.
Bendixen, M.T., & Abratt, R.: 2007, ‘Corporate Identity, Ethics and Reputation in Supplier-Buyer Relationships”, Journal of Business Ethics 76, 69-82.
Brock, D.M.: 2003, ‘Autonomy of Individuals and Organizations: Towards a Strategy Research Agenda’, International Journal of Business and Economics 2(1), 57-73.
Brown, A.D., Boyett, I. & Robinson, P.: 1994, ‘The Dynamics of Partnership Sourcing’, Leadership & Organization Development Journal 15(7), 15-18.
Carter, J.R. & Ellram, L.M.: 1994, ‘The Impact of Interorganizational Alliances in Improving Supplier Quality’, International Journal of Physical Distribution & Logistics Management, 24(5), 15-23.
Christman, J.: 2003, ‘Autonomy in Moral and Political Philosophy’, The Stanford Encyclopedia of Philosophy, Stanford University, http://plato.stanford.edu/.
Chun, S. & Kim G.M.: 2003 ‘Performance effects of partnership between manufacturers and suppliers for new product development: the supplier’s standpoint’, Research Policy, 32, 587-603.
CNN.com: 2007, ‘Toy Company CEO Kills Self’, August 13, 2007, http://www.cnn.com/2007/WORLD/asiapcf/08/13/china.toymaker.ap/index.html.
Committee on Energy and Commerce: 2007a, ‘Testimony of Robert A. Eckert, Chairman and Chief Executive Officer, Mattel, Inc’ in Front of the Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce, September 19, 2007. Washington, DC.
Committee on Energy and Commerce: 2007b, ‘Testimony of Mary B. Teagarden, Professor of Global Strategy at the Thunderbird School of Global Management’ in Front of the Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on Energy and Commerce, September 20, 2007. Washington, D.C.
De Graaf, G.: 2006, ‘The Autonomy of the Contracting Partners: An Argument for Heuristic Contractarian Business Ethics’, Journal of Business Ethics 68(3): 347-361.
Donaldson, T.: 1982, Corporations and Morality (Prentice-Hall, Englewood Cliffs, NJ).
Donaldson, T. & Dunfee, T.W.: 1994, ‘Towards a Unified Conception of Business Ethics: Integrative Social Contracts Theory’, Academy of Management Review 19(2): 252-284.
Donaldson, T. & Dunfee, T.W.: 1995, ‘Contractarian Business Ethics’, Business Ethics Quarterly 5(2): 173-186.
Donaldson, T. & Dunfee, T.W.: 1999, Ties That Bind. A Social Contracts Approach to Business Ethics (Harvard Business School Press, Boston).
Dunfee, T.W.: 1991, ‘Business Ethics and Extant Social Contracts’, Business Ethics Quarterly 1(1): 23-51.
Egels-Zandén, N.: 2007, ‘Suppliers’ Compliance with MNCs’ Codes of Conduct: Behind the Scenes at Chinese Toy Suppliers’, Journal of Business Ethics 75(1): 45-62.
Fair Labor Association: 2007, ‘2007 Annual Report’, www.fairlabor.org, Washington.
FIAS & Business for Social Responsibility: 2007, Corporate Social Responsibility in China’s Information and Communications Technology (ICT) Sector (United Nations Environmental Programme, Nairobi).
Fisher, J.: 2001, ‘Lessons for Business Ethics from Bioethics’, Journal of Business Ethics 34(1): 15-24.
Fishman, C.: 2006, ‘The Wal-Mart Effect and a Decent Society: Who Knew Shopping Was So Important?’. The Academy of Management Perspectives 20(3): 6-25.
French, P.A.: 1995, Corporate Ethics (Harcourt Brace College Publishers, Fort Worth).
Goffin, K., Lemke, F. & Szwejczewski, M.: 2006, ‘An exploratory study of ‘close’ supplier-manufacturer relationships’, Journal of Operations Management 24, 189–209.
Harney, A.: 2008, The China Price. The true costs of Chinese competitive advantage (Penguin Press, New York).
Hegel, G. W. F.: 1999, Grundlinien der Philosophie des Rechts, Hauptwerke, Vol. 5 (Meiner, Hamburg).
Hobbes, T.: 1981, Leviathan (Penguin Classics, New York).
Kannan, V.R. & Tan, K.C.: 2004, ‘Supplier Alliances: Differences in Attitudes to Supplier and Quality Management of Adopters and Non-Adopters’, Supply Chain Management: An International Journal 9(4): 279-286.
Kant, I.: 1999, Grundlegung zur Metaphysik der Sitten (Meiner, Hamburg).
Kant, I.: 2006, The Metaphysics of Morals (Cambridge University Press, Cambridge).
Lee-Mortimer, A.: 1994, ‘Supplier Integration’, World Class Design to Manufacture 1(6): 39-43.
Locke, J.: 1952, The Second Treatise of Government (Macmillan, New York).
Mattel: 2001, ‘Global Manufacturing Principles’, www.sba.pdx.edu/faculty/scottm/smaccess/Mattel_manufacturing_principles.pdf.
Mattel: 2007a, 2007 Global Citizen Report (Mattel, El Segundo).
Mattel: 2007b, ‘Global Manufacturing Principles’, www.mattel.com/about_us/Corp_Responsibility/GMPoverview.pdf.
McGregor, D.: 1960, The Human Side of Enterprise (McGraw-Hill, New York).
McLean, B. & Elkind, P.: 2004, The Smartest Guys in the Room. The Amazing Rise and Scandalous Fall of Enron (Penguin Books, New York).
Melé, D.: 2005, Exploring the Principle of Subsidiarity in Organizational Forms, Journal of Business Ethics 60(3): 293-305.
Michaelson, C.: 2006, Compliance and the Illusion of Ethical Progress, Journal of Business Ethics 66(2-3): 241-251.
Paton, H.J.: 1971, The Categorical Imperative. A Study in Kant’s Moral Philosophy (University of Philadelphia Press, Philadelphia).
Piachaud, B.S.; 2002, ‘Outsourcing in the pharmaceutical manufacturing process: an examination of the CRO experience’, Technovation 22: 81–90.
Piercy, N.F. & Lane, N.; 2006, ‘Ethical and Moral Dilemmas associated with Strategic Relationships between Business-to-Business Buyers and Sellers’, Journal of Business Ethics 72(1): 87-102.
Porter, M.E.: 1980, Competitive Strategy. Techinques for Analyzing Industries and Competitors (The Free Press, New York).
Ramzy, A.: 2007, ‘A Chinese Toymaker’s Mea Culpa’, Time, August 14, 2007.
Rawls, J.: 1994, A Theory of Justice (Belknap Press, Cambridge, Mass.).
Roloff, J.: 2006, Sozialer Wandel durch deliberative Prozesse. Die Einführung von Sozialstandards in marokkanischen Textilunternehmen (Metropolis, Marburg).
Sethi, S.P.: 2003, Setting Global Standards. Guidelines for Creating Codes of Conduct in Multinational Corporations (John Wiley & Sons, Inc., Hoboken).
Smith, A.: 1982, Lectures of Jurisprudence (LJB: Report dated 1766) (Liberty Fund, Indianapolis).
Spencer, J. and N. Casey: 2007, ‘Toy Recall Shows Challenge China Poses to Partners’, The Wall Street Journal, August 3, 2007.
Story, L. and D. Barboza: 2007, ‘Mattel Recalls 19 Million Toys Sent from China’, The New York Times, August 15, 2007.
Theodorakioglou, Y., Gotzamani, K. & Tsiolvas, G.: 2006, ‘Supplier Management and its Relationship to Buyers’ Quality Management’, Supply Chain Management: An International Journal 11(2): 148-159.
U.S. Consumer Product Safety Commission: 2007, ‘Toy Hazard Recalls’, http://www.cpsc.gov/cpscpub/prerel/category/toy.html.
Verschuere, B.: 2006, Autonomy and Control in Arm’s Length Public Agencies: Exploring the Determinants of Policy Autonomy. Doctoral dissertation, Faculty of Social Sciences, K. U. Leuven.
Wagner, S.M.: 2006, ‘Supplier Development Practices: An Exploratory Study’, European Journal of Marketing 40(5/6): 554-571.
Williams, S.: 2007, ‘A Supplier development Programme: The SME Experience’, Journal of Small Business and Enterprise Development 14(1): 93-104.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Roloff, J., Aßländer, M.S. Corporate Autonomy and Buyer–Supplier Relationships: The Case of Unsafe Mattel Toys. J Bus Ethics 97, 517–534 (2010). https://doi.org/10.1007/s10551-010-0522-1
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-010-0522-1