Question

How would you respond if one of Sonic’s suppliers was accused of using child labor in the production of a part you purchase. To what extent should brands be held responsible for misbehavior by downstream suppliers?

Answer 1

It is the one supplier's fault to use child labor, but it is the response of the Sonic towards it when news broke out, that is more important to me. If Sonic takes corrective action, then it enhances the value of Sonic as a brand and  I give preferences to Sonic products in my buying decisions. If Sonic does not do anything even after the news breaks out, then I will respond by giving more weights and preferences to the those products that are equivalent to the Products of Sonic. So, when alternatives, are evaluated, then Sonic will be less preferred by myself. Though. If there is no any other product in the market, other than the Sonic product, then I will opt to buy the Sonic product unless I find the other alternatives.

There are many players in the supply chain and all of them have to comply the laws. If one supplier does not comply and does misbehavior, then it is the responsibility of the brand to help supplier either take corrective action, or go out of the supply chain. If the supplier goes out of the supply chain, then the misbehavior should be reported by the brand to the relevant authorities so that future misconduct is prevented. Hence, a brand should be held responsible if they know it and do not take any action. Besides, they can also be help responsible up to a certain level, as they should be given the guidelines regarding do's and don'ts so that there is not negative publicity to the brand itself.