As a number of high profile companies have found to their cost, corporate reputations can be significantly affected by firms' management of sustainability issue, including those that are outside their direct control, such as the environmental and social impacts of their supply networks. This paper begins by examining the relationship between corporate social responsibility, reputation, and supply network conditions. It then looks at the effectiveness of one tool for managing supply network sustainability issues, ethical sourcing codes of (...) conduct, by examining how the characteristics of three supply networks branded clothes, DIY wood products and branded confectionary affects the implementation ethical sourcing codes of conduct. It ends by setting out conclusions on why implementation of such codes has been so much more successful in some sectors than others and recommendations on effective approaches to managing sustainability issues in supply networks. (shrink)

This paper addresses ethical issues surrounding global supply chains of multinational companies in developing countries. In particular, it considers the development and application of industry-wide ethical standards and codes of conduct for multinational supply chains in China. We describe and analyze the ethical norms and compliance components of such industry-wide regimes in the toy, textile, and consumer electronics industries. We argue that this development represents an positive attempt to institutionalize emergent international ethical standards and practices into this component (...) of the Chinese economy. (shrink)

This paper addresses ethical issues surrounding global supply chains of multinational companies in developing countries. In particular, it considers the development and application of industry-wide ethical standards and codes of conduct for multinational supply chains in China. We describe and analyze the ethical norms and compliance components of such industry-wide regimes in the toy, textile, and consumer electronics industries. We argue that this development represents an positive attempt to institutionalize emergent international ethical standards and practices into this component (...) of the Chinese economy. (shrink)

Purpose This paper aims to analyze the relationships between human resource supply chain management (HRSCM), corporate culture (CC) and the code of business ethics (CBE) in the MENA region. Design/methodology/approach In this study, the author adopted a quantitative approach through an online Google Form survey for the data-gathering process. All questionnaires were distributed to the manufacturing and service firms that are listed in the Chambers of the Industries of Jordan, Saudi Arabia, Morocco and Egypt in the MENA (...) region using a simple random sampling method. About 567 usable and valid responses were retrieved out of 2,077 for analysis, representing a 27.3% response rate. The sample unit for analysis included all middle- and senior-level managers and employees within manufacturing and service firms. The conceptual model was tested using a hypothesis-testing deductive approach. The findings are based on covariance-based analysis and structural equation modeling (SEM) using PLS-SEM software. The author performed convergent validity and discriminant validity tests, and bootstrapping was also applied. Findings The empirical results display a significant and positive association between HRSCM and the CBE. The CC and the CBE tend to be positively and significantly related. Therefore, HRSCM can play a key role in boosting and applying the CBE in firms. For achieving the firm purposes, more attention to the HR personnel should be paid to implement the CBE. The high importance of the CBE becomes necessary for both the department and the firm. Practical implications Such results can provide insightful information for HR personnel, managers and leaders to encourage them to develop and maintain an effective corporate code of conduct within their organizations. Originality/value This paper tries to explore the linkages between HRSCM, CC and CBE in the Middle East region due to the lack of research available that analyzes the relationship between them. Not only that, but it also offers great implications for Middle Eastern businesses. (shrink)

Corporate social responsibility (CSR) is increasingly becoming a popular business concept in developed economies. As typical of other business concepts, it is on its way to globalization through practices and structures of the globalized capitalist world order, typified in Multinational Corporations (MNCs). However, CSR often sits uncomfortably in this capitalist world order, as MNCs are often challenged by the global reach of their supply chains and the possible irresponsible practices inherent along these chains. The possibility of irresponsible practices puts (...) global firms under pressure to protect their brands even if it means assuming responsibilities for the practices of their suppliers. Pressure groups understand this burden on firms and try to take advantage of the situation. This article seeks to challenge the often taken-for-granted-assumption that firms should be accountable for the practices of their suppliers by espousing the moral (and sometimes legal) underpinnings of the concept of responsibility. Except where corporate control and or corporate grouping exist, it identifies the use of power as a critical factor to be considered in allocating responsibility in firm-supplier relationship; and suggests that the more powerful in this relationship has a responsibility to exert some moral influence on the weaker party. The article highlights the use of code of conducts, corporate culture, anti-pressure group campaigns, personnel training and value reorientation as possible sources of wielding positive moral influence along supply chains. (shrink)

In a world of limited resources, it could be argued that companies that aspire to be good corporate citizens need to focus on making best use of resources. User value and environmental harm are created in supply chains and it could therefore be argued that company business ethics should be extended from the company to the entire value chain from the first supplier to the last customer. Starting with a delineation of the linkages between business ethics, (...) corporate sustainability, and the stakeholder concept, this article argues that supply chains generally have a great innovation potential for sustainable development. This potential could be highlighted with system thinking and the use of change management knowledge, promoting not only innovations within technology but also within organizational improvement. We propose process models and performance indicators as means of highlighting improvement potential and thus breaking down normative business ethics' requirements to an opertionalizable corporate level: Good business ethics should focus on maximizing stakeholder value in relation to harm done. Our results indicate that focusing on supply chains reveals previously unknown innovation potential that seems to be related to limited system understanding. The assumption is that increased visibility of opportunities will act as a driver for change. Results also highlight the importance of focusing on sustainability effects of the core business and clearly relating value created to harm done. (shrink)

Environmentally Conscious Supply Chain Management (ECSCM) refers to the control exerted over all immediate and eventual environmental effects of products and processes associated with converting raw materials into final products. While much work has been done in this area, the focus has traditionally been on either: product recovery (recycling, remanufacturing, or re-use) or the product design function only (e.g., design for environment). Environmental considerations in manufacturing are often viewed as separate from traditional, value-added considerations. However, the case can (...) be made that professional engineers have an ethical responsibility to consider the immediate and eventual environmental impacts of products and processes that they design and/or manage. This paper describes ECSCM as a component of engineering ethics, and highlights the major issues associated with ethical decision-making in supply chain management. (shrink)

“The moral issues generated by the food supply chain demand attention and analysis. There must be an ethical approach balancing profitability with the welfare of life and the conservation of the environment.” Lorice Stainer is a business ethics consultant and Visiting Fellow at Leicester University Management Centre; Alan Gully is Principal Lecturer in Business Studies, and Member for the Centre for Research in International Economics, at Middlesex University Business School; and Alan Stainer is Head of Engineering Management (...) and Professor of Productivity and Performance Management at Middlesex University. (shrink)

“The moral issues generated by the food supply chain demand attention and analysis. There must be an ethical approach balancing profitability with the welfare of life and the conservation of the environment.” Lorice Stainer is a business ethics consultant and Visiting Fellow at Leicester University Management Centre; Alan Gully is Principal Lecturer in Business Studies, and Member for the Centre for Research in International Economics, at Middlesex University Business School; and Alan Stainer is Head of Engineering Management (...) and Professor of Productivity and Performance Management at Middlesex University. (shrink)

Decisions made by supply chain managers have a far-reaching impact on the economic, environmental, and social performance of entire supply chains, even though many activities in the supply chain occur beyond the direct control of those managers. Some firms establish a line of moral disengagement, beyond which they distance themselves from the impact of the activities of the supply chain. This research addresses the question of why some managers choose to take responsibility for (...) the sustainability of their supply chain, while others do not. We argue that the ethical predisposition and moral complexity of the individual employee moderates the interpretation of the drivers of sustainability, increasing or decreasing their ability to build a business case for supply chain responsibility. We also argue that ethical predisposition moderates the likelihood of a business case being enacted. We then discuss theoretical and managerial implications resulting from this finding. (shrink)

The purpose of this study is to propose a research model to investigate the relationships between supply chain digitalization, supply chain integration, and firm performance. In particular, the mediating effect of supply chain integration and the moderating effect of supply chain digitalization in the research model are examined. An online survey is administered to Chinese employees (N = 264) working in the supply chain industry. Data are analyzed by the partial (...) least squares structural equation modeling (PLS-SEM) using the SmartPLS 3.0. The findings of this study reveal that both digitalization and supply chain integration have a positive influence on firm performance. Moreover, supply chain integration partially mediates the relationship between supply chain digitalization and firm performance. Meanwhile, supply chain digitalization positively moderates the relationship between supply chain integration and firm performance. These findings address the research gap in the extant literature and provide practical implications in ethical supply chain management. In particular, this study reveals that supply chain digitalization can drive a higher level of ethical supply chain in the perspective of supply chain visibility and efficiency in operations. (shrink)

In this article we explore the state of current ESCM practices in U.K. companies. We develop a conceptual framework that draws upon the stakeholder,resource-based, and power-dependence perspectives and examine this framework in light of empirical evidence concerning ESCM in 166 UK companies. Using a combination of qualitative and quantitative methods, our evidence suggests that around 50% of sample companies engage in some form of ESCM activity and that experiencing significant external pressure from customers is an important driver of ESCM.

Technological advancements in information systems over the past few decades have enabled firms to work with the major suppliers and customers in their supply chain in order to improve the performance of the entire channel. Tremendous benefits for all parties can be realized by sharing information and coordinating operations to reduce inventory requirements, improve quality, and increase customer satisfaction; but the companies must collaborate effectively to bring these gains to fruition. We consider two alternative methods of managing these (...) interfirm supply chain relationships in this article. The first, which we have named “dictatorial collaboration,” occurs when a dominant supply chain entity assumes control of the channel and forces the other firms to follow its edicts. We compare and contrast this method with “sustainable collaboration,” in which the parties share resources and engage in joint problem solving to improve the performance of the system as a whole. We use a virtue ethics lens to describe these methods of relationship management to suggest that sustainable collaboration is preferable to dictatorial collaboration both operationally and ethically in the long run. (shrink)

Automated vehicles promise much in the way of both economic boons and increased personal safety. For better or worse, the effects of automating personal vehicles will not be felt for some time. In contrast, the effects of automated work vehicles, like semi-trucks, will be felt much sooner—within the next decade. The costs and benefits of automation will not be distributed evenly; while most of us will be positively affected by the lower prices overall, those losing their livelihoods to the automated (...) semi-trucks and other similar work vehicles will be much worse off. This sets up a classic distributive justice problem: how do we balance the harms and benefits of automation? In this paper, the authors recommend work alternatives: policies that the government would enact in order to ensure that each person could live a decent life even if one could not work, especially for reasons like having one’s job automated. After arguing for this position, we propose some policy guidelines. (shrink)

Governance is one of the core concepts underlying sustainable supply chain (SC). Although governance practices are widely acknowledged and implemented, literature discussing those practices is not as thoroughly organized. The purpose of this paper is therefore to investigate the forms, dynamics, and development of sustainable supply chain governance (SSCG). We reviewed a total of 126 articles in operations and SC management peer-reviewed journals spanning 15 years of recent research. Our literature analysis unveils several key themes concerning (...) the popularity of contractual and relational governance, the role of SC lead firms, the network perspective, and the dynamics of governance mechanisms. At a higher conceptual level, we conclude that there exists a mutually dependent relationship between SSCG and SC complexity. The study summarizes and conceptualizes the recent scholarly conversations about SSCG and offers an agenda for further research. (shrink)

Using firm-level data from the U.S. manufacturing industry, this paper examines the relationship among inventory leanness, structural strategies for supply chains, and the carbon intensities of a firm and its suppliers. We formulate hypotheses on and empirically test whether this internal characteristic and these two structural strategies can influence the intensities of firm-level and supply chain environmental impacts. We examine inventory leanness because it not only reflects a manufacturer’s operational efficiency but also markedly influences manufacturers’ financial performance. (...) We also focus on two closely related structural strategies that can influence the scope and ownership of the supply chain process, resulting in changes in emission allocation and, more importantly, how resources are utilized and shared in a firm. Based on multi-year carbon inventory data from U.S. manufacturing firms, we find that manufacturers with greater inventory leanness and a parsimonious process structure tend to attain lower firm-level and supply chain carbon intensities. (shrink)

In spite of its commercial importance and signs of clear concern in public policy arenas, trade credit has not been subjected to systematic, extended analysis in the business ethics literature, even where suppliers as a stakeholder group have been considered. This paper makes the case for serious consideration of the ethics of trade credit and explores the issues surrounding slow payment of debts. It discusses trade debt as a kind of promise, but—noting that not all promises are good (...) ones—goes on to develop an analysis of the ethics of trade credit grounded in an understanding of its fundamental purpose. Making a distinction between “operating” trade credit and “financial” trade credit, the paper provides an account of the maximum period for which it is appropriate for one company to delay payment to another from which it has purchased goods or services. The concern of commentators and policy makers that companies should not take too long to pay their debts is affirmed, but the understanding of what timely payment means is significantly finessed, with one conclusion being that, if debts have not already been settled according to acceptable standard terms of trade, cash should pass quickly back along the supply chain once the customer in the final product market has paid. The analysis has implications not only for companies that take credit but also for external parties that seek to rate companies or set regulations according to speed of payment—an approach that is shown to be misleadingly simplistic, albeit well intentioned. A corresponding important responsibility for suppliers, not to extend excessive credit, also follows from the analysis developed. Having provided a novel analysis of an important business problem, the paper then discusses some of the related practical issues and makes suggestions for further research. (shrink)

One of the key challenges for firms is to manage sustainability along the supply chain. To extend sustainability to suppliers, organizations have developed different governance mechanisms. The aim of this paper is to analyze the effectiveness of two different mechanisms (i.e., supplier assessment and collaboration with suppliers) to improve one dimension of sustainability: environmental performance. Structural Equation Modeling and cluster analysis were used to analyze the relationships between supplier assessment, collaboration with suppliers, and environmental performance. The results suggest (...) that (1) both mechanisms, supplier assessment and collaboration with suppliers, have a positive and synergistic effect on environmental performance, and (2) assessment acts as an enabler of collaboration. Finally, the paper also contributes to the literature by providing a framework of sustainability governance mechanisms. (shrink)

Firms are increasingly integrating sustainability into their supply chain management (SCM) practices. The goal is to achieve sustainable flows of products, services, information and capital to provide maximum value to all corporate stakeholders. Prior research on SCM integration has insufficiently addressed sustainability. The objective of this research is to provide for a coherent and testable model of sustainable supply chain management integration (SSCMI). By drawing on four cases from the German manufacturing industry, we seek to identify (...) the most important factors that enable or impede the integration of sustainability into SCM. (shrink)

In recent years there has been an increased interest in the research dedicated to the ethics and morality of supply chains. The concept of Corporate Social Responsibility (CSR) dominates the literature on supply chain ethics in management education. The objective of this paper is to develop some propositions to complement and look more broadly and differently at these management concepts. Supplementing these concepts with the fundamental questions on the meaning of ‘what a moral supply (...) chain is’ and ‘what moral supply chain ought to be,’ we develop some descriptive and normative propositions for management education on the ethics of supply chains. Against a descriptive viewpoint, we propose that judgments on the morality of supply chains should be viewed from multiple perspectives, often conflicting. Against a normative viewpoint, we propose some reflections on how to apply Aristotelian practical wisdom in management education on supply chain ethics. (shrink)

In 2009, Greenpeace launched an aggressive campaign against Nestlé, accusing the organization of driving rainforest deforestation through its palm oil suppliers. The objective was to damage the brand image of Nestlé and, thereby, force the organization to make its supply chain more sustainable. Prominent cases such as these have led to the prevailing view that sustainable supply chain management is primarily reactive and propelled by external pressures. This research, in contrast, assumes that SSCM can contribute positively (...) to the reputation of an organization as a “good citizen” and, thereby, counter the impression that external stakeholder pressure is the only driver of SSCM. The study draws on Resource Dependence Theory in analyzing the three competing models of the potential stakeholder, SSCM and the corporate sustainability performance relationship. A dataset of 1,621 organizations allows the statistical comparison of these three models. Findings suggest that stakeholder pressure and SSCM both contribute to an organization’s sustainability performance. Thus, supply chain managers will perceive benefits from SSCM other than merely the reduction of risk from reputational damage through stakeholder activism. (shrink)

The continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies. Although there have been many efforts at reform there is evidence of unresolved dilemmas of human rights, environmental issues and ethical dilemmas in the operation of the global value chain. This paper focuses on the role and performance of Apple Inc in the (...) global value chain in Asia. Apple is the most successful corporation on earth measured in financial terms and yet has failed to find a solution to recurrent employment and environmental problems occurring in plants manufacturing Apple components. This analysis informs the current theoretical debate on the development of the global value chain and the continuing institutional failure that leaves employees vulnerable and the environment neglected. (shrink)

This article examines corporate responsibility in the supply chains of four of the largest Scandinavian multinational corporations - IKEA, Nokia, Novo Nordisk, and StatoilHydro - and offers two key findings. First, these Scandinavian companies have all implemented responsible supply chain practices where suppliers in developing nations, and the communities of these suppliers, are engaged as key stakeholders and treated as partners. Second, these supply chain practices all share the common bond of having honesty and the (...) establishment of trust-based relationships at their foundation. As a result, these Scandinavian companies have developed a "cooperative advantage" in their ability to form successful, long-term partnerships in their respective supply chains. (shrink)

Supply chains are an indispensable element of any global economy. At the same time such supply chains create a societal and environmental burden. Drastic actions are required to mitigate these effects. Supply chains should become responsible and sustainable (where responsibility and sustainability are understood in a broad sense) addressing economic, political, societal, legal, human rights, ethical and environmental concerns. This research shifts from the question of why companies should implement responsibility and sustainability into supply chains, to (...) how they should do so effectively. Illustrated by a case study of Sedex, a collaborative platform for buyers and suppliers, this paper proposes three solutions for responsible and sustainable supply chain management (SCM). Firstly, supply chains have to be supported by research and innovation (R&I). Secondly, supply chains should be based on multi-stakeholder efforts of industry, governmental and non-governmental organisations. Thirdly, the responsibility should lie not only with an individual company and its employees, but also with organisations of companies (supra-agency). As a result, responsible and sustainable supply chains require technological, political and ethical solutions involving the development of sound, multi-stakeholder business and governance models. These models should be based on the equal consideration of all three dimensions of sustainability (economic, environmental and social), the cooperation of the partners in the chain, strengthening long-term relationships and legitimate requirements of the stakeholders of a supply chain. (shrink)

The restructured globalized economy has provided women with employment opportunities. Globalisation has also meant a shift towards self-regulation of multinationals as part of the restructuring of the world economy that increases among others things, flexible employment practices, worsening of labour conditions and lower wages for many women workers around the world. In this context, as part of the global trend emphasising Corporate Social Responsibility (CSR) in the 1980s, one important development has been the growth of voluntary Corporate Codes of Conduct (...) to improve labour conditions. This article reviews from a feminist interdisciplinary perspective the broad academic literature on women workers, covering the more classical debate on women workers in the industrialization process and entering into women workers in the global supply chains and women workers and corporate codes of conduct. The main argument is that this research on women workers is crucial to frame the issues of business ethics and in particular CSR and Codes of Conduct in the context of women in the global political economy. When this crucial knowledge is ignored, then the ethical policies of the companies also ignore the real situation of the women workers at the bottom of their supply chains. (shrink)

There are two primary purposes of this manuscript: (i) to evaluate the western buyers’ ethical issue in the setting of eastern and western economies, and (ii) to assess the ethical values of the employers and the government in their business dealing in the background of Bangladesh. Analyzing the present minimum wage (MW) policy of the garment global supply chain industry in Bangladesh and the extent to which the policy functions are two of the other purposes of this study. (...) This study is the mixed approached of exploratory, descriptive, and phenomenological qualitative research. Each of the exploratory, descriptive, and phenomenological qualitative research goals has identified and described in a systematic way to get the best outcome of the purposes set in this manuscript. This study shows that rule utilitarian ethics are being followed by the Western buyers in their business dealings in Western territories. The philosophy of rule utilitarianism holds moral principles, and this principle tends to place greater emphasis on ethical interests rather than economic gains. Unfortunately, Western buyers do not follow the rule utilitarianism in their business dealing in eastern countries. Thus, this study shows western business leaders/buyers are not ethically correct. The act utilitarian ethics, on the other hand, are being followed by the eastern buyers in their business dealing. The philosophy of act utilitarianism holds immoral principles, and this principle tends to place greater emphasis on economic gains rather than ethical interest. This philosophy permit firm’s unethical behavior such as an exploitation of MW on the ground that this practice increases its incomes and maximizes the owner’s interest. The employers and buyers unethically gain profit, keeping the workers in a disadvantaged situation, which contradicts John Rawls’ Theory of Justice. Furthermore, the government has become an accomplice in exploiting and depriving the garment works of their entitlement and labor rights to appease the so-called investors. This study helps buyers, employers, government, and stakeholders to correct their unethical business deals. It also helps the policymakers to implement the MW policy for the betterment of garment global supply chain workers. (shrink)

Amongst a backdrop of debate regarding Codes of Conduct and their raison d’etre this paper provides a detailed summary of the management systems used by multinational enterprises in the Code implementation process. It puts forth a framework for analysis based on the elements of – the creation of a vision, the development of understanding and ability, integration into operations and feedback, improvement and remediation – and then applies it across the sports footwear, apparel and retail sectors in order to firstly, (...) demonstrate the complexities of the Code implementation process and secondly, to provide useful examples and lessons-learned to companies, policy-makers and others interested in implementing their own Code of Conduct or who are actively involved in this field. (shrink)

As recently stakeholders complain about the use of conflict minerals in consumer products that are often invisible to them in final products, firms across industries implement conflict mineral management practices. Conflict minerals are those, whose systemic exploitation and trade contribute to human right violations in the country of extraction and surrounding areas. Particularly, supply chain managers in the Western world are challenged taking reasonable steps to identify and prevent risks associated with these resources due to the globally dispersed (...) nature of supply chains and the opacity of the origin of commodities. Supply chain due diligence represents a holistic concept to proactively manage supply chains reducing the likelihood of the use of conflict minerals effectively. Based on an exploratory study with 27 semi-structured interviews within five European industries, we provide insights into patterns of implementation, key motivational factors, barriers and enablers, and impacts of SCDD in mineral supply chains. Our results contribute to both theory and practice as we provide first insights to SCDD practices and make recommendations for an industry-wide implementation of SCDD. Altogether, this study provides the basis for future theory testing research in the context of SCDD and conflict mineral management. (shrink)

Contemporary food supply chains are generating externalities with high economic and social costs, notably in public health terms through the rise in diet-related non-communicable disease. The UK State is developing policy strategies to tackle these public health problems alongside intergovernmental responses. However, the governance of food supply chains is conducted by, and across, both private and public spheres and within a multilevel framework. The realities of contemporary food governance are that private interests are key drivers of food (...) class='Hi'>supply chains and have institutionalized a great deal of standards-setting and quality, notably from their locations in the downstream and midstream sectors. The UK State is designing some downstream and some midstream interventions to ameliorate the public health impacts of current food consumption patterns in England. The UK State has not addressed upstream interventions towards public health diet at the primary food production and processing stages, although traditionally it has shaped agricultural policy. Within the realities of contemporary multilevel governance, the UK State must act within the contexts set by the international regimes of the Common Agricultural Policy and the World Trade Organization agreements, notably on agriculture. The potential for further upstream agricultural policy reform is considered as part of a wider policy approach to address the public health externalities issuing from contemporary food supply chains within this multilevel governance context. (shrink)

The implementation of socially sustainable supply chain management (SSCM) practices (i.e. assessment and collaboration) to tackle suppliers’ social deficiencies (e.g. the use of child labour) often requires a level of cooperation that can be difficult to establish. Despite this daunting challenge, scant scholarly attention has been paid to explore how the implementation of socially SSCM practices can be effectively facilitated and enhanced. Drawing on social capital theory, this study examines the individual impact of assessment and collaboration practices on (...) suppliers’ social performance and explores whether and how these effects can be moderated (strengthened) by the level of social capital (i.e. relational, cognitive, and structural) embedded in the buyer–supplier relationship. Based on a survey of 119 manufacturing companies in the UK, we found that assessment practices are less likely to influence suppliers to improve social performance compared to collaboration practices. However, when relational and structural capital are manifested in the relationship, assessment practices become significant in driving suppliers’ social performance. We also found that the positive impact of collaboration practices is more pronounced when relational and cognitive capital are established in the relationship. This paper contributes to the growing socially SSCM literature by disentangling the vital and relative importance of social capital dimensions on the implementation of socially SSCM practices. (shrink)

Impact sourcing is the practice of employing socio-economically disadvantaged individuals at business process outsourcing centres to reduce poverty and create secure jobs. One of the pioneers of impact sourcing is Sama, a training-data company that focuses on annotating data for artificial intelligence (AI) systems and claims to support an ethical AI supply chain through its business operations. Drawing on fieldwork undertaken at three of Sama’s East African delivery centres in Kenya and Uganda and follow-up online interviews, this article (...) interrogates Sama’s claims regarding the benefits of its impact sourcing model. Our analysis reveals alarming accounts of low wages, insecure work, a tightly disciplined labour management process, gender-based exploitation and harassment and a system designed to extract value from low-paid workers to produce profits for investors. We argue that competitive market-based dynamics generate a powerful force that pushes such companies towards limiting the actual social impact of their business model in favour of ensuring higher profit margins. This force can be resisted, but only through countervailing measures such as pressure from organised workers, civil society, or regulation. These findings have broad implications related to working conditions for low-wage data annotators across the sector and cast doubt on the ethical nature of AI products that rely on this form of AI data work. (shrink)

Labour and employment law no longer has a monopoly on regulating labour relations and is facing a crisis as its effectiveness is questioned. Codes of conduct adopted by companies to recognise their social responsibility for the global supply chain are instruments that can usefully complement labour and employment law. The aim of this paper is to analyse in depth the legal nature of codes of conduct and their impact on labour and employment law. Will the use of codes (...) of conduct reinforce the crisis of labour and employment law in the era of globalisation or will these codes be part of a solution to this crisis? Do we have to consider codes of conduct as competitors to labour and employment law or as an opportunity for rethinking the way that labour and employment law norms should be produced and applied? (shrink)

Labour and employment law no longer has a monopoly on regulating labour relations and is facing a crisis as its effectiveness is questioned. Codes of conduct adopted by companies to recognise their social responsibility for the global supply chain are instruments that can usefully complement labour and employment law. The aim of this paper is to analyse in depth the legal nature of codes of conduct and their impact on labour and employment law. Will the use of codes (...) of conduct reinforce the crisis of labour and employment law in the era of globalisation or will these codes be part of a solution to this crisis? Do we have to consider codes of conduct as competitors to labour and employment law or as an opportunity for rethinking the way that labour and employment law norms should be produced and applied? (shrink)

Responding to criticism by Gordon Sollars and Frank Englander, this paper highlights a significant tension in recent debates over the ethics of global supply chains. This tension concerns the appropriate focus and normative frame for these debates. My first goal is to make sense of what at first reading seems to be a very odd set of claims: that valuing free, autonomous, and respectful markets entails a “fetish for philosophical purity” that is inconsistent with a moral theory that (...) finds no wrong in harming workers, including the least advantaged among them. Sollars and Englander reach these conclusions, I believe, because their criticism assumes and relies upon the presumption of a global prioritarian frame, one which focuses individual welfare, and which they then apply at the level of individual political and economic actors. Much of Benjamin Powell and Matt Zwolinski’s work, I continue, including their criticism of political and economic activism and Powell’s indictment of organized labor, relies on a similar frame—while expanding the harms to include the freedom and autonomy of would-be sweatshop workers. This prioritarian frame, I argue, is particularly poorly suited to discussion of the ethical responsibilities of individual economic and political actors. We ought to reject it. To make progress on debates over global sweatshops, and the ethics of global supply chains in general, we need a better frame, and better standards of freedom and autonomy, than those invoked by many prominent defenders of sweatshops. (shrink)

This book analyzes the implementation of CSR reporting and codes of business conduct and ethics in the legal systems of the USA, Austria and China and their enforcement in international supply chain arbitrations. The book demonstrates that long-term profit maximization is increasingly intertwined with corporate ethics and CSR policies. In order to prevent window-dressing and greenwashing, certain control mechanisms and legal standards are required along the entire supply chain. This book introduces an ethics (...) and CSR system recommending a reward-based whistleblowing mechanism, internal oversight by a CSR and Ethics Committee comprised of independent board members and at least one sustainability expert, and an external, independent and comprehensive assurance of CSR reports provided by auditing firms or newly formed governmental agencies consisting of certified CSR experts. The author emphasizes the significance for supply chain leaders to ensure contractual enforcement of their codes of business ethics and conduct along the supply chain. Against this background, the author created a comprehensive fictitious case scenario covering a supply chain dispute arising from the breach of the supply chain leader’s code of business conduct and ethics by a lower-tier supply chain member. The author acknowledges the fact that in most of the cases the governing law of international supply chain contracts is English law or law based on English law. Thus, the author discusses potential contractual claims for damages arising from a loss of profits caused by a loss of reputation resulting from violations of core provisions of the chain leader’s supplier code of conduct pursuant to English law. As international supply chain disputes usually involve more than two parties, and international arbitration is the ideal means for the resolution of these disputes, the book compares the arbitration rules for consolidations and joinders of some of the most significant international arbitration institutions: SIAC, ICC, AIAC, ICDR, VIAC, CIETAC and HKIAC. The book is directed at legal practitioners, legislators of various jurisdictions, board members of corporations, ethics and compliance officers, academics, researchers and students. It is the author’s main goal that the book serves as an inspirational source for the establishment or the improvement of a corporate ethics and CSR system preventing window-dressing and greenwashing and covering the entire supply chain. Furthermore, it is intended that students develop a deeper understanding for the enforcement of corporate ethics and CSR policies. (shrink)

Over a period of 19 months in 2006 and 2007, Mattel recalled approximately 14 million toys. The company was subjected to numerous lawsuits and regulatory actions and suffered severe damage to its reputation. Two issues were involved: excessive levels of lead in numerous toy surface paints and small detachable magnets in some toys, which could be swallowed. An examination of the facts shows that two different ethical situations were involved—one concerning product design and the other concerning manufacturing practices of Mattel's (...) Chinese contractors and subcontractors. The ethical obligations of the company and individuals within the company in the two situations were quite different, and illustrate problems faced by companies in managing their global supply chains. (shrink)

To fight climate change, firms must adopt effective and feasible carbon management practices that promote collaboration within supply chains. Engaging suppliers and customers on carbon management reduces vulnerability to climate-related risks and increases resilience and adaptability in supply chains. Therefore, it is important to understand the motives and preconditions for pursuing supply chain engagement from companies that actively engage with supply chain members in carbon management. In this study, a relational view is applied to (...) operationalize the supply chain engagement concept to reflect the different levels of supplier and customer engagement. Based on a sample of 345 companies from the Carbon Disclosure Project’s supply chain program, the determinants of engagement were hypothesized and tested using multinomial and ordinal logistic estimation methods. The results indicate that companies that integrate climate change into their strategies and are involved in developing environmental public policy are driven by moral motives to engage their suppliers and customers in carbon management. All these factors make a stronger impact on supplier engagement than on customer engagement. Moreover, companies operating in greenhouse gas-intensive industries are driven by instrumental motives to engage their suppliers and customers because increasing greenhouse gas intensity positively influences engagement level. Company profitability appears to increase supplier engagement, but not customer engagement. Interestingly, operating in a country with stringent environmental regulations does not appear to influence supply chain engagement. By utilizing relational capabilities and collaboration, buyers can increase their suppliers’ engagement to disclose emissions, which ultimately will lead to better results in carbon management. (shrink)

ABSTRACT:Global multi-stakeholder initiatives are important instruments that have the potential to improve the social and environmental sustainability of global supply chains. However, they often fail to comprehensively address the needs and interests of various supply-chain participants. While voluntary in nature, MSIs have most often been implemented through coercive approaches, resulting in friction among their participants and in systemic problems with decoupling. Additionally, in those cases in which deliberation was constrained between and amongst participants, collaborative approaches have often (...) failed to materialize. Our framework focuses on two key aspects of these breakdowns: assumptions about the orientation of MSI participants, and the deliberation processes that participants use to engage with each other to create these initiatives and sustain them over time. Drawing from stakeholder and deliberation theories, we revisit the concept of MSIs and show how their deliberative capacity may be enhanced in order to encourage participants to collaborate voluntarily. (shrink)

The COVID-19 crisis illustrates the fragility of supply chains. Countries with excellent health systems struggled to ensure essential supplies of food, medicines, and personal protective equipment which were vital to a fast and effective response. Using geo-legality, which maps the constitutive relations between law and space, we argue that the failure of supply chains in many western countries during the crisis reveals a fundamental tension between their role as facilitators of care and caring, and the logistic logics by (...) which they operate. While supply chains link the intimate, domestic concerns of providing medical care with the globalised geographical concerns of moving goods across different jurisdictions at the right time, their contemporary organisation and regulation does not reflect the caring relations and public goods they are meant to support. Drawing on analysis of examples from Canada, the United Kingdom, and the United States, this article argues that a reconfiguration of supply chains in accordance with feminist approaches that place care at the centre of supply chain operation and organisation will be important to amendments of both domestic and global health law. (shrink)

The food industry faces many significant risks from public criticism of corporate social responsibility (CSR) issues in the supply chain. This paper draws upon previous research and emerging industry trends to develop a comprehensive framework of supply chain CSR in the industry. The framework details unique CSR applications in the food supply chain including animal welfare, biotechnology, environment, fair trade, health and safety, and labor and human rights. General supply chain CSR issues (...) such as community and procurement are also considered. Ultimately, the framework serves as a comprehensive tool to support food industry practitioners and researchers in the assessment of strategic and operational supply chain CSR practices. (shrink)

There is a growing body of research on the theory and practice of sustainable supply chain management (SSCM). However, relatively little research has been conducted on the extent to which corporations have integrated sustainability principles into the management of their supply chain and the evaluation of supplier performance. The purpose of this article is to explore the extent to which corporate sustainability principles are integrated into supply chain management (SCM) in corporations. Canada is used (...) as a case study in this article. The study included a content analysis of one hundred Canadian corporate sustainable development reports and in-depth interviews with 18 Canadian experts on SSCM. The article highlights the wide array of ways in which Canadian corporations address SSCM issues. Amongst other topics, issues associated with supply chain governance, standards for SSCM, collaboration with suppliers, performance measurement, and accountability within the supply chain are explored. The findings reveal that there are many challenges in integrating sustainability into SCM. These challenges shed light on possible future directions for research in SSCM. This article underlines the need for research that reflects the interconnected nature of the economic, environmental, and social dimensions of sustainability, particularly as it relates to measuring supplier performance on sustainability initiatives. (shrink)

Transparency lies at the heart of most modern slavery reporting legislation, but while publication of statements is mandatory, conformance with content guidance is voluntary, such that overall, corporate responses have been poor. Existing studies, concentrated in business to consumer rather than inter-organisational contexts, have not undertaken the fine-grained assessments of statements needed to identify which aspects of reporting performance are particularly poor and the underlying reasons that need to be addressed by policy makers. In a novel design, this study utilises (...) the ethical trade initiative assessment framework to evaluate the content of 95 UK government suppliers’ modern slavery statements. The findings suggest that in a modern slavery context, discovery challenges are more important than firms’ attitudes to disclosure. We contribute to the transparency literature through a model contrasting discovery costs and disclosure risks and by identifying the disclosure of unknowns as an additional relevant dimension of disclosure. We then discuss the model in relation to normativity theory to consider options through which the currently low legitimacy of the reporting governance regime can be enhanced and the intended norms established. (shrink)

Information disclosure is a common regulatory tool designed to influence business behavior. A belief is that transparency can provoke learning and also positive institutional change by empowering private watchdogs to monitor and pressure business leaders to alter harmful behavior. Beginning in the late 1990s, a private movement emerged that pressured corporations to disclose the identify of their global supplier factories. These activists believed that factory disclosure would lead to greater accountability by corporations for the working conditions under which their products (...) are made, which in time would improve labor practices. In 1995, Nike and Levi-Strauss (Levis) surprised the business community by publishing their supplier lists. This paper describes case studies of Nike and Levis, tracking the evolution from resistance to supply chain transparency through to the decision to be industry leaders in factory disclosure. The paper evaluates the contribution of factory disclosure and proposes that other companies should be urged to move toward supply chain transparency. (shrink)

Companies have been experiencing increasing pressure from NGOs to overcome unethical and unsustainable behaviours. The purpose of this research was to study the interplay between supply chain transparency and NGO pressure. The analysis builds on the literature on supply chain transparency and institutional pressures. We conducted a time-lagged, multi-level regression analysis that included data from 270 fashion companies over a 5-year period to investigate the effect of NGO pressure on transparency and vice versa. The results revealed (...) that companies with higher levels of transparency are more likely to be pressured by NGOs than less transparent companies. Furthermore, our findings show that, depending on the number of campaigns, NGO power and communication about campaigns, NGO pressure can either stimulate corporate transparency or turn into a negative effect that leads to lower levels of transparency. (shrink)

This project investigates salient stakeholder forces of socially responsible supply chain orientation (SRSCO) in the apparel and footwear sector focusing on fair labor management issues. SRSCO was conceptualized as a composite of internal organizational direction and external partnership for a creation and continuation of fair labor conditions throughout the supply chain. Primary stakeholders identified were consumers, regulation, industry, and media. A total of 209 mail survey responses from sourcing managers of U.S. apparel and footwear companies were (...) analyzed. Two dimensions of SRSCO were confirmed: internal direction and external partnership. Consumer and industry peer pressures were found significantly related to internal direction, while industry peers and media were significantly related to the external partnership. Regulation was not significantly related to either internal direction or external partnerships. Lack of regulation forces to govern labor issues and roles of consumers, industry peers, and media in promoting fair labor management are discussed in this article. (shrink)

In “Sweatshops and Respect for Persons” we argued on Kantian grounds that managers of multinational enterprises (MNEs) have the following duties: to adhere to local labor laws, to refrain from coercion, to meet minimum health and safety standards, and to pay workers a living wage. In their commentary on our paper Sollars and Englander challenge some of our conclusions. We argue here that several of their criticisms are based on an inaccurate reading of our paper, and that none of the (...) remaining criticisms successfully challenge our main arguments. By highlighting the shortcomings of their arguments we hope to advance discussion of the ethical treatment of workers in global supply chains. (shrink)

In “Sweatshops and Respect for Persons” we argued on Kantian grounds that managers of multinational enterprises (MNEs) have the following duties: to adhere to local labor laws, to refrain from coercion, to meet minimum health and safety standards, and to pay workers a living wage. In their commentary on our paper Sollars and Englander challenge some of our conclusions. We argue here that several of their criticisms are based on an inaccurate reading of our paper, and that none of the (...) remaining criticisms successfully challenge our main arguments. By highlighting the shortcomings of their arguments we hope to advance discussion of the ethical treatment of workers in global supply chains. (shrink)