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The diminished stakeholder: examining the relationship between suppliers and supermarkets in the Australian grocery industry

Citation

Grimmer, L, The diminished stakeholder: examining the relationship between suppliers and supermarkets in the Australian grocery industry, Journal of Consumer Behaviour, 17, (1) pp. e13-e20. ISSN 1472-0817 (2018) [Refereed Article]

Copyright Statement

Copyright 2017 John Wiley & Sons, Ltd.

DOI: doi:10.1002/cb.1674

Abstract

This study examines the role of stakeholders in the context of the retail industry, specifically the Australian supermarket industry. Through the lens of stakeholder theory, it is argued that suppliers to the Australian supermarket duopoly (Coles and Woolworths) might be considered "diminished" stakeholders, that is, they lack in urgency, legitimacy, and power. Using a case study methodology, this study analyses two separate cases of Coles and Woolworths' treatment of suppliers during the period 2011 and 2014. In the two cases, Australian Federal Court proceedings were brought by the Australian Competition and Consumer Commission against both supermarkets for "unconscionable" behaviour towards their suppliers. The study also examines the impact of the relationship between Coles and Woolworths and their suppliers on consumers as the end-user in the chain of consumption. The paper argues that the ethical treatment of suppliers by supermarkets will lead to better outcomes for both suppliers and consumers and contribute to the long-term sustainability of the firm.

Item Details

Item Type:Refereed Article
Keywords:stakeholder, suppliers, supermarkets, Australia
Research Division:Commerce, Management, Tourism and Services
Research Group:Business and Management
Research Field:Business and Management not elsewhere classified
Objective Division:Commercial Services and Tourism
Objective Group:Property, Business Support Services and Trade
Objective Field:Wholesale and Retail Trade
Author:Grimmer, L (Dr Louise Grimmer)
ID Code:120150
Year Published:2018 (online first 2017)
Deposited By:Tasmanian School of Business and Economics
Deposited On:2017-08-11
Last Modified:2018-05-24
Downloads:0

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