The influence of ethical culture on supplier selection in the context of sustainable sourcing

Driven by the upsurge in global (out‐)sourcing and the changing expectations of organizations' stakeholders, companies are increasingly being held responsible for the actions of their suppliers. Subsequently, Purchasing and Supply Management (PSM) has emerged as an important factor in safeguarding organizations from being accused of irresponsible behavior. Grounded on the concept of ethical culture, the research in this paper identifies elements for guiding PSM behavior towards socially and environmentally sustainable supplier selection. Results indicate that different elements of the firms' ethical culture have a significant impact on how purchasing managers account for social and environmental criteria when selecting suppliers.