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Themed issue on supply chain management (SCM): current education provision and practitioner future needs
Edited by Remko van Hoek and Beverly Wagner
Introduction
Most professionals are fully cognizant of the risks that have the potential to disrupt supplies. Minor design problems, machinery breakdowns or major natural global disasters represent risks that supply chain managers must consider when mitigating against disruptions. However, one kind of risk is often overlooked in supply chain management: reputational risk. A recent example can be seen with Apple Inc., the American multinational computer corporation. In September 2011, The New York Times posted that the company was adding to the pollution of China because of its suppliers ([5] Barboza, 2011). In January 2012, Apple Inc. was again in the headlines for the human costs associated to the manufacturing of the iPad ([30] Duhigg and Barboza, 2012). The safety of Apple's suppliers came under scrutiny. Two months later, Apple Inc. was yet again pointed out for the poor labour practices of its suppliers ([31] Duhigg and Greenhouse, 2012). Although the risk mitigating practices of the company have minimized disruptions, the risks to their reputation, as a result of their supply chain, were ignored.
In general terms, reputational risks are not disruptive to resources, which partly explains why the associated costs are often very difficult to determine. Given the delicate nature of reputation, they may be beyond valuation.
The present paper has a twin-focus: First, it will lay out the basic premises behind corporate reputation, reputational risk, and corporate social responsibility (CSR). After "unpacking" the theory, these areas will be blended in a supply chain setting. Second, having the theoretical foundation covered, the practical implications will be addressed that lead to a substantial teaching component in the main body of this paper. Having the education of Master students in mind, we will discuss three specific teaching units that bring the conceptual underpinnings alive in an interactive learning environment. The concluding section will highlight the implications for theory builders and practitioners in the supply chain environment.
Corporate reputation
Having a firm listed on a "Who's Who" survey, such as Fortune Magazine 's annual report on reputation, will have positive effects on the organisation's performance ([2] Ang and Wight, 2009). A positive corporate reputation has...