Abstract
The purpose of this study is to investigate how a prime contractor’s supply chain ESG policy affects its suppliers’ ESG performance and customer satisfaction. For this purpose, 329 questionnaires were collected from employees of SMEs in the manufacturing industry.
 The empirical findings of this study can be summarised as follows. First, the supply chain ESG policy of the prime contractor has a positive effect on the ESG performance of the supplier. Second, the supply chain ESG policy of the prime contractor has no effect on customer satisfaction with the supplier. Third, the supplier’s ESG performance has a positive effect on customer satisfaction with the supplier.
 These results confirm that the supply chain ESG policy of the prime contractor has a significant impact on improving the ESG performance of the supply chain
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