Supply Chain ESG Risk Contagion and Governance: A Case Study of Apple Inc.
Main Article Content
Keywords
supply chain, ESG risk, supply chain ESG risk contagion, event study method
Abstract
In the field of ESG research, the contagion mechanisms of supply-chain ESG risks and their corresponding governance strategies have generally been overlooked. Taking the 2010 Foxconn suicide incidents and the resulting brand reputation crisis at Apple as its research object, this study employs the event study methodology to document the phenomenon of ESG risk contagion from an upstream supplier to a downstream end-brand enterprise. It further delineates the contagion pathway, encompassing stages such as media exposure and stock price volatility. Finally, the paper synthesizes the response strategies adopted by various parties following risk contagion, including internal supply-chain governance and external oversight. From the perspective of risk contagion, this study constructs a comprehensive supply-chain ESG risk management framework consisting of “ESG risk identification → contagion pathway analysis → governance strategy response”. The framework not only enriches the theoretical literature on ESG but also offers practical guidance for firms seeking to mitigate externality risks and enhance supply-chain resilience. Additionally, it provides a theoretical foundation for national authorities to refine ESG disclosure requirements and regulatory policies.
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