The fine jewellery industry : corporate responsibility challenges and institutional forces facing SMEs

Carrigan, M; McEachern, M; Moraes, C; Bosangit, C

Abstract

There has been limited coverage of the corporate responsibility (CR) practices of small and medium-sized enterprises (SMEs) in the mainstream CR literature. Furthermore, there has been no systematic analysis of the responsibilities of the high value jewellery industry and jewellery SMEs in particular. This study explores the potential for harm and value creation by individual stakeholders in fine jewellery production. Using the harm chain and institutional theory to frame our investigation, we seek to understand how small businesses within the fine jewellery industry respond to the economic, social and environmental challenges associated with responsible jewellery production, and to investigate how they perceive and negotiate the tensions between responsibility and the resistance derived from the operational norms of secrecy and autonomy within the industry. Our exploratory research provides illustrative examples of how complex harm networks operate within and across the fine jewellery industry, and demonstrates the inter-relationships that exist across the different stages of the fine jewellery harm chain. Findings suggest that institutional forces are coalescing towards a more responsible agenda for the fine jewellery industry. Moreover, while CR is a tool to disrupt harmful institutional norms and practices within such an industry, it requires the co-creation of new transformative business models and multi-stakeholder involvement including firms (SMEs and MNEs), trade associations, non-governmental organisations and consumers. Solutions include national and international legislation, price adjusted certification routes for small firms, harmonisation of industry CR standards to reduce overlap in certification and regulation, and gem and precious metal “track and trace” schemes.

Citation

Carrigan, M., McEachern, M., Moraes, C., & Bosangit, C. (2017). The fine jewellery industry : corporate responsibility challenges and institutional forces facing SMEs. Journal of Business Ethics, 143(4), 681-699. https://doi.org/10.1007/s10551-016-3071-4

• Journal Article Type: Article
• Acceptance Date: Feb 1, 2016
• Online Publication Date: Feb 18, 2016
• Publication Date: Jul 1, 2017
• Deposit Date: Feb 22, 2016
• Publicly Available Date: Apr 5, 2016
• Journal: Journal of Business Ethics
• Print ISSN: 0167-4544
• Electronic ISSN: 1573-0697
• Publisher: Springer Verlag
• Volume: 143
• Issue: 4
• Pages: 681-699
• DOI: https://doi.org/10.1007/s10551-016-3071-4
• Publisher URL: http://dx.doi.org/10.1007/s10551-016-3071-4
• Related Public URLs: http://link.springer.com/journal/10551
• Additional Information: Funders : BES Faculty Research Pump Priming Fund; Projects : Responsible Business Practice in SMEs: the case of the Birmingham Jewellery Quarter