Heavy Is the Head that Wears the Crown: Responsibility and Fulfillment of Supply-chain Network Center Enterprises — From the Perspective of ESG

Zhang Jiping, Li Zengfu

Foreign Economics & Management Vol. 46, Issue 07, pp. 86 - 101 (2024)  DOI:10.16538/j.cnki.fem.20231218.202

Summary

This paper constructs a supply-chain network based on the data of Shanghai and Shenzhen A-share listed companies and their two-level business relationships from 2008 to 2021, and examines the impact of supply-chain network position on the ESG performance of enterprises. It is found that the closer an enterprise is to the center of the supply-chain network, the better its ESG performance is. Mechanism testing shows that enterprises located close to the center of the supply-chain network improve ESG performance by receiving more external supervision, increasing investment in innovation, and obtaining more commercial credit support. Heterogeneity testing finds that the central position of the supply-chain network has a more significant promoting effect on the ESG performance of state-owned enterprises, enterprises with higher transaction costs, and enterprises with higher market positions. This paper indicates that the supervision and incentives brought about by the “central position” of the supply-chain network promote the responsibility and fulfillment of enterprises towards social responsibility.

Keywords

supply-chain network; ESG performance of enterprises; central position