We outline the drivers, main features, and conceptual underpinnings of the compliance paradigm. We then use a similar structure to investigate the drivers, main features, and conceptual underpinnings of the cooperative paradigm for working with CSR in global value chains. We argue that the measures proposed in the new cooperation paradigm are unlikely to alter power relationships in global value chains and bring about sustained improvements in workers’ conditions in developing country export industries. After that, we provide a critical appraisal (...) of the potential and limits of the cooperative paradigm, we summarize our findings, and we outline avenues for research: purchasing practices and labor standard noncompliance, CSR capacity building among local suppliers, and improved CSR monitoring by local resources in the developing world. (shrink)

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 extends scholarship on multi-stakeholder initiatives (MSIs) in the context of corporate social responsibility in three ways. First, I outline a framework to analyze the strength of couplings between actors participating in MSIs. Characterizing an MSI as consisting of numerous local networks that are embedded in a wider global network, I argue that tighter couplings (within local networks) and looser couplings (between local networks) coexist. Second, I suggest that this coexistence of couplings enables MSIs to generate policy outcomes which (...) address the conditions of a transnational regulatory context. I argue that MSIs’ way of organizing enables them to cope with three challenges: the stability, flexibility, and legitimacy of governance. Reflecting on these challenges, the article identifies a number of problems related to MSIs’ role in transnational governance. Third, I discuss the UN Global Compact as an illustrative case and examine problems and opportunities related to its stability, flexibility, and legitimacy. (shrink)

Poor working conditions remain a serious problem in supplier facilities in developing countries. While previous research has explored this from the developed buyers’ side, we examine this phenomenon from the perspective of developing countries’ suppliers and subcontractors. Utilizing qualitative data from a major knitwear exporting cluster in India and a stakeholder management lens, we develop a framework that shows how the assumptions of conventional, buyer-driven voluntary governance break down in the dilution of buyer power and in the web of factors (...) rooted in suppliers’ traditions, beliefs, local demands and resource dependency. We reveal out how success in governing collaborative global supply chains often falls short within the subcontracting stage, where a stakeholder management mindset is elusive to most participants. We suggest that success in governing collaborative global supply chains is dependent on concepts of stakeholder utility and the presence of shared value that is often at odds with the realities of power, information asymmetry and compliance/reward systems inherent in the non-market coordination of global supply chains. Our findings offer important insights for delineating the concepts of value creation from CSR concepts and practices, and for modifying the basic assumptions of conventional supply chain governance. (shrink)

Despite increased academic and practitioner interest in codes of conduct, there has been little research into the actual compliance of suppliers in developing countries with the codes of conduct of multinational corporations. This paper addresses this lack by analysing Chinese suppliers' level of compliance with Swedish toy retailers' codes of conduct. Based on unannounced and unofficial interviews with employees of Chinese suppliers, the study shows that all of the nine studied suppliers breached some of the standards in the toy retailers' (...) codes, with over two-thirds of the suppliers not complying with the majority of the studied standards. While there are different explanations of this lack of compliance, the main explanation seems to be that Chinese suppliers successfully deceive toy retailers' monitoring organisations by decoupling the formal monitored part of their organisation from the actual operational part of their organisation. The paper concludes with a discussion of how to increase compliance with MNCs' codes of conduct. (shrink)

Many transnational corporations and international organizations have embraced corporate social responsibility to address criticisms of working and environmental conditions at subcontractors' factories. While CSR 'codes of conduct' are easy to draft, supplier compliance has been elusive. Even third-party monitoring has proven an incomplete solution. This article proposes that an alteration in the supply chain's governance, from an arms-length market model to a collaborative partnership, often will be necessary to effectuate CSR. The market model forces contractors to focus on price and (...) delivery as they compete for the lead firm's business, rendering CSR observance secondary, at best. A collaborative partnership where the lead firm gives select suppliers secure product orders and other benefits removes disincentives and adds incentives for CSR compliance. In time, the suppliers' CSR habit should shift their business philosophy toward pursuing CSR as an end in itself, regardless of buyer incentives and monitoring. This article examines these hypotheses in the context of the athletic footwear sector with Nike, Inc. and its suppliers as the specific case study. The data collected and conclusions reached offer strategies for advancing CSR beyond the superficial and often ineffectual 'code of conduct' stage. (shrink)

We leverage insights and theories from the extensive inter-firm alliance literature to explore the effect of the sector of the partners on Firm–NGO alliance governance. Our analysis suggests that the sector of the partners has an important impact on alliance governance, not only because it constrains the availability of some governance mechanisms but also because it makes alternative mechanisms available or relevant to the partners. Specifically, we predict that B2N alliances will rely on contracts, a restricted scope, and non-equity hostages, (...) such as reputational hostages and stakeholder involvement, rather than equity, leading to limited protection against opportunism. As a consequence, B2N alliance partners will need to rely on trust-based governance mechanisms to a greater extent than B2B alliance partners, although trust will be harder to build in B2N alliances. (shrink)

I explore the limits of corporate responsibility standards – for example Social Accountability 8000 (SA 8000), the Global Reporting Initiative, the Fair Labor Association workplace code – by looking at these initiatives through Derrida's aporias of justice as set out in ‘Force of Law: The “Mystical Foundation of Authority”’. Based on a discussion of SA 8000, I uncover the unavoidable aporias that are associated with the use of this standard. I contribute to the literature on corporate responsibility standards in general (...) and SA 8000 in particular by showing (a) that attempts to standardise corporate responsibility can only be successful insofar as we recognise that compliance with SA 8000's rules requires a ‘fresh judgement’ every time they are applied, (b) that SA 8000 should not be pushed down the supply chain as such coercion does not require a truly responsible decision by suppliers and eventually leads to moral mediocrity and (c) that the necessarily time‐consuming reflections about the singular contexts within which SA 8000 is applied challenge the urgent need for implementing this standard. I discuss the implications of my analysis of SA 8000 for corporate responsibility standards in general. (shrink)

I explore the limits of corporate responsibility standards – for example Social Accountability 8000 (SA 8000), the Global Reporting Initiative, the Fair Labor Association workplace code – by looking at these initiatives through Derrida's aporias of justice as set out in 'Force of Law: The "Mystical Foundation of Authority"'. Based on a discussion of SA 8000, I uncover the unavoidable aporias that are associated with the use of this standard. I contribute to the literature on corporate responsibility standards in general (...) and SA 8000 in particular by showing (a) that attempts to standardise corporate responsibility can only be successful insofar as we recognise that compliance with SA 8000's rules requires a 'fresh judgement' every time they are applied, (b) that SA 8000 should not be pushed down the supply chain as such coercion does not require a truly responsible decision by suppliers and eventually leads to moral mediocrity and (c) that the necessarily time-consuming reflections about the singular contexts within which SA 8000 is applied challenge the urgent need for implementing this standard. I discuss the implications of my analysis of SA 8000 for corporate responsibility standards in general. (shrink)

While cross-sectoral partnerships are frequently presented as a way to achieve sustainable development, some corporations that first tried using the strategy are now changing direction. Growing tired of what are, in their eyes, inefficient and unproductive cross-sectoral partnerships, firms are starting to form post-cross-sectoral partnerships (‚post-partnerships’) open exclusively to corporations. This paper examines one such post-partnership project, the Business Social Compliance Initiative (BSCI), to analyse the possibility of post-partnerships establishing stable definitions of ‚corporate responsibility’. We do this by creating a (...) theoretical framework based on actor-network theory (ANT) and institutional theory. Using this framework, we show that post-partnerships suffer from the paradox of striving to marginalise those stakeholders whose support they need␣for establishing stable definitions of ‚corporate responsibility’. We conclude by discussing whether or not post-partnership strategies, despite this paradox, can be expected to establish stable definitions of ‚corporate responsibility’. (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)

The problem of collective action is that each member of a group wants other members to make necessary sacrifices while he or she 'free rides', reaping the benefits of collective action without doing the work. Inevitably the end result is that no one does the work and the common interest is not realized. This book analyses the social pressure whereby groups solve the problem of collective action. The authors show that the problem of collective action requires a model of group (...) process and cannot be deduced from simple models of individual behaviour. They employ formal mathematical models to emphasize the role of small subgroups of especially motivated individuals who form the 'critical mass' that sets collective action in motion. The book will be read with special interest by sociologists, social psychologists, economists and political scientists. It will also be of concern to those in industrial relations and communications research working on issues in collective action and rational choice. (shrink)

Interactions between corporations and nonprofits are on the rise, frequently driven by a corporate interest in establishing credentials for corporate social responsibility (CSR). In this article, we show how increasing demands for accountability directed at both businesses and NGOs can have the unintended effect of compromising the autonomy of nonprofits and fostering their co-optation. Greater scrutiny of NGO spending driven by self-appointed watchdogs of the nonprofit sector and a prevalence of strategic notions of CSR advanced by corporate actors weaken the (...) ability of civil society actors to change the business practices of their partners in the commercial sector. To counter this trend, we argue that corporations should embrace a political notion of CSR and should actively encourage NGOs to strengthen “downward accountability” mechanisms, even if this creates more tensions in corporate–NGO partnerships. Rather than seeing NGOs as tools in a competition for a comparative advantage in the market place, corporations should actively support NGO independence and critical capacity. (shrink)

Academic literature recognizes that firms in different countries deal with corporate social responsibility (CSR) in different ways. Because of this, analysts presume that variations in national-institutional arrangements affect CSR practices. Literature, however, lacks specificity in determining, first, what parts of national political-economic configurations actually affect CSR practices; second, the precise aspects of CSR affected by national-institutional variables; third, how causal mechanisms between national-institutional framework variables and aspects of CSR practices work. Because of this the literature is not able to address (...) to what extent CSR practices are affected by either global or national policies, discourses and economic pressures; and to what extent CSR evolves as either an alternative to or an extension of national-institutional arrangements. This article proposes an alternative approach that focuses on an exploration of links between disaggregated variables, which can then be the basis for imagining new national-institutional configurations affecting aspects of CSR. It illustrates this approach with an exploration of the importance of development aid policy for CSR practices in global supply chains. (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)