Contracting Against Slavery: Corporate Accountability for Human Rights Supply Chain Violations

The United States Supreme Court decision in Nestlé USA, Inc. v. Doe effectively closed the door for forced laborers in the global supply chain to sue corporations headquartered in the United States for aiding and abetting in their human trafficking under the Alien Tort Statute. At the same time, however, the European Union and Canada are passing legislative measures that increase corporate accountability for human rights supply chain violations. This note argues that, in light of the Nestlé decision, contracts can be an effective mechanism for corporate accountability in the United States and that multi-national corporations will be incentivized to incorporate these contracts throughout the supply chain as a means of compliance with the European Union and Canadian statutory schemes

Too good to be true? Boundary conditions to the use of downward social comparisons in service recovery

Evidence shows that downward social comparisons (DSCs), messages delivered by frontline employees describing how service experiences turned out even worse for others, can reduce customers’ anger following a service failure. This study contributes to the literature on DSCs and service recovery by highlighting pitfalls associated with the use of these messages in service recovery and showing the conditions necessary for their effectiveness. Building on persuasion knowledge theory, we show that customers draw manipulative inferences about DSCs because of the perceived bias associated with the source of the message and the implicit derogation of a competitor that DSCs entail. To reduce inferences of manipulative intentions, frontline employees should accompany DSC messages with intense apologies and use selfderogation to reduce the perception that they are criticizing another firm. Past claims on the generalized effectiveness of DSCs need to be revised. Managers should craft social comparison messages carefully to avoid negative reactions from customers. Our research indicates that once adapted to address these concerns, DSCs can be an effective recovery strategy amongst individuals with a strong need for social comparison information

Contracting Against Slavery: Corporate Accountability for Human Rights Supply Chain Violations

The United States Supreme Court decision in Nestlé USA, Inc. v. Doe effectively closed the door for forced laborers in the global supply chain to sue corporations headquartered in the United States for aiding and abetting in their human trafficking under the Alien Tort Statute. At the same time, however, the European Union and Canada are passing legislative measures that increase corporate accountability for human rights supply chain violations. This note argues that, in light of the Nestlé decision, contracts can be an effective mechanism for corporate accountability in the United States and that multi-national corporations will be incentivized to incorporate these contracts throughout the supply chain as a means of compliance with the European Union and Canadian statutory schemes