Implementing Codes of Conduct: How Businesses Manage Social Performance in Global Supply Chains

2006 ◽  
Vol 23 (3) ◽  
pp. 400-401
Author(s):  
B. Loh
Keyword(s):  
Supply Chains ◽  
Social Performance ◽  
Codes Of Conduct ◽  
Global Supply Chains

Private Regulation of Labor Standards in Global Supply Chains

2021 ◽  
Author(s):  
Sarosh Kuruvilla
Keyword(s):  
Supply Chains ◽  
Codes Of Conduct ◽  
Regulatory System ◽  
Labor Standards ◽  
Global Supply Chains ◽  
Private Regulation ◽  
Labor Conditions ◽  
Voluntary Regulation ◽  
Corporate Codes Of Conduct ◽  
Multi Stakeholder

This book examines the effectiveness of corporate social responsibility on improving labor standards in global supply chains. The book charts the development and effectiveness of corporate codes of conduct to ameliorate “sweatshop” conditions in global supply chains. This form of private voluntary regulation, spearheaded by Nike and Reebok, became necessary given the inability of third world countries to enforce their own laws and the absence of a global regulatory system for labor standards. Although private regulation programs have been adopted by other companies in many different industries, we know relatively little regarding the effectiveness of these programs because companies don't disclose information about their efforts and outcomes in regulating labor conditions in their supply chains. The book presents data from companies, multi-stakeholder institutions, and auditing firms in a comprehensive, investigative dive into the world of private voluntary regulation of labor conditions. The picture painted is wholistic and raw, but it considers several ways in which this private voluntary system can be improved to improve the lives of workers in global supply chains.

Causal Complexity

2021 ◽  
pp. 65-74
Author(s):  
Chunyun Li
Keyword(s):  
Supply Chains ◽  
Working Conditions ◽  
Codes Of Conduct ◽  
Global Supply Chains ◽  
Private Regulation ◽  
Institutional Conditions ◽  
Incentive Effects ◽  
Regulation Model ◽  
International Conventions ◽  
Causal Complexity

This chapter examines causal complexity. The determinants of improvement in working conditions in supplier factories in global supply chains are complex. The complexity arises from the interaction between heterogeneous actors (companies, auditing firms, suppliers) following a multiplicity of practices, combined with the effect of local institutional conditions and industry and workplace context. Along with the general lack of transparency in private regulation, this combination of causal factors leads to uncertainty with respect to cause–effect relationships. The central assumption of the private regulation model is that if standards are set by codes of conduct (whether based on international conventions or local laws), and if supplier factories comply with the codes, sweatshop conditions will be avoided and improvements will be made in the lives of workers in global supply chains. But this assumption may not be warranted; buyers and brands may not have the power to force suppliers to compel compliance. And within the businesses of most global buyers and retailers, sourcing may not be sufficiently well integrated with compliance, so the incentive effects of rewarding good factories that are making improvements in compliance are not realized in practice — even though such incentives are the very basis for the model of private regulation of first-tier supplier factories.

Do Voluntary Labour Initiatives Make a Difference for the Conditions of Workers in Global Supply Chains?

2010 ◽  
Vol 52 (5) ◽  
pp. 561-573 ◽  
Author(s):  
Pamela K. Robinson
Keyword(s):  
Supply Chains ◽  
Codes Of Conduct ◽  
Global Supply Chains ◽  
Minimum Standards ◽  
Nation States ◽  
Consumer Markets ◽  
Major Shift ◽  
Buyer Power ◽  
The Uk ◽  
Market Liberalism

Since the mid-1990s a plethora of voluntary labour initiatives has been introduced in global supply chains that serve northern-based consumer markets. The chief aim of these new systems of labour governance is to establish minimum standards and conditions for workers employed in the production of goods for export. This concern for labour follows a period of market liberalism, a major shift in the regulatory position of nation-states and the globalization of business. Voluntary initiatives, which largely draw on the International Labour Organization (ILO) core conventions, include codes of conduct, certifiable standards and International Framework Agreements (IFAs). The article explores the effectiveness of these initiatives in a highly concentrated industry: the banana trade. The banana trade is dominated on the production side by three North American agri-businesses: Chiquita Brands International, Dole Food Company and Fresh Del Monte Produce. Yet these businesses are increasingly being directed by international retailers, particularly in the UK, where the four major supermarket groups command access to the consumer, and comprise Tesco, ASDA (owned by Wal-Mart), J Sainsbury and Wm Morrison Supermarkets. The continuing increase of retail buyer power within global supply chains, coupled with supermarkets’ intent to respond to demands for social responsibility in the chains that serve them, raises the prospect of better conditions for workers. However, the article argues that although some improvements have been made, while supermarkets continue to drive down costs to benefit consumers, workers ultimately pay the price.

scholarly journals Sustainable CSR in Global Supply Chains

2019 ◽  
Vol 9 (1) ◽  
pp. 82
Author(s):  
Robert N. Mefford
Keyword(s):  
Supply Chains ◽  
Multinational Firms ◽  
Codes Of Conduct ◽  
Global Supply Chains ◽  
Environmental Practices ◽  
Improvement Programs ◽  
The Common ◽  
Sustainability Practices ◽  
Quality Improvement Programs

Multinational firms face many challenges in extending sustainability practices to their global supply chains. Establishing standards for environmental practices and working conditions for suppliers through codes of conduct, and then monitoring their performance with audits, is the common method used by MNEs. However, this approach has proven deficient in many cases as the suppliers are often not capable or unwilling to make the changes necessary to assure long-term sustainability of their operations. Audits often are insufficient in uncovering practices that do not meet the codes of conduct, and in any case, do not usually reveal if the firm is on a path to continue to improve their sustainability practices. Drawing upon the experiences of firms that have implemented productivity and quality improvement programs in their global supply chains, some implications for how to implement successful sustainability programs can be found. The challenges that MNEs and their suppliers must overcome to achieve this are discussed and suggestions made on how to achieve real sustainability in global supply chains.

Improving Working Conditions in Global Supply Chains: The Role of Institutional Environments and Monitoring Program Design

ILR Review ◽  
2020 ◽  
Vol 73 (4) ◽  
pp. 873-912 ◽  
Author(s):  
Jodi L. Short ◽  
Michael W. Toffel ◽  
Andrea R. Hugill
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Child Labor ◽  
Working Conditions ◽  
Occupational Safety ◽  
Program Design ◽  
Institutional Environment ◽  
Codes Of Conduct ◽  
Monitoring Program ◽  
Global Supply Chains

Activism seeking to improve labor conditions in global supply chains has led many transnational corporations to adopt codes of conduct and to monitor suppliers for compliance. Drawing on thousands of audits conducted by a major social auditor, the authors identify structural contingencies in the institutional environment and program design under which codes and monitoring are more likely to be associated with improvements in conditions. At the institutional level, suppliers improve more when they face greater risk that nongovernmental organizations and the press will expose harmful working conditions. They also improve more when their buyers have experienced negative publicity for supply chain labor abuses. At the program design level, suppliers improve more on average when audits are pre-announced, when auditors are highly trained, and especially when both elements are present. Extended analysis of variations across violation types reveals nuances to these findings. For instance, pre-announced audits were followed by greater improvement in occupational safety and health practices but not child labor practices. These findings can inform strategies for improving supply chain working conditions.

scholarly journals International Framework Agreements: global industrial relations between rights and bargaining

2005 ◽  
Vol 11 (4) ◽  
pp. 511-530 ◽  
Author(s):  
Nikolaus Hammer
Keyword(s):  
Supply Chains ◽  
Multinational Corporations ◽  
Trade Union ◽  
Industrial Relations ◽  
Codes Of Conduct ◽  
Global Supply Chains ◽  
Works Councils ◽  
Labour Rights ◽  
Key Issues ◽  
Global World

This paper examines the emergence and the main features of International Framework Agreements (IFAs). IFAs originated in the 1980s and proliferated after 2000. They aim to secure core labour rights across multinational corporations' global supply chains. Global Union Federations, as well as other global (World Company and Works Councils), regional (European Works Councils or European Industry Federations) and national trade union structures, are parties to IFAs. Based on various features of international trade union activity, such as World Company Councils, codes of conduct, the trade and labour rights campaign or international social dialogue, IFAs constitute an important and innovative tool of international industrial relations. An analysis of the substantive and procedural provisions of IFAs leads to an analytical distinction between ‘rights' agreements and ‘bargaining’ agreements. The article assesses the substantive and procedural aspects of the 38 IFAs concluded before June 2005. Finally, key issues such as the scope of agreements, trade union capacity, and global supply chains are discussed in the context of international labour's campaigning, organising and negotiation activities.

Sign in / Sign up

Export Citation Format

Share Document