The Growth of Private Regulation of Labor Standards in Global Supply Chains: Mission Impossible for Western Small- and Medium-Sized Firms?

Multinational corporations (MNCs) have come under pressure to adopt private regulatory initiatives such as supplier codes of conduct in order to address poor working conditions in global supply chain factories. While a well-known literature explores drivers and outcomes of such monitoring schemes, t...

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Bibliographic Details
Published in:Journal of business ethics
Main Author: Knudsen, Jette Steen (Author)
Format: Electronic Article
Language:English
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Published: Springer Science + Business Media B. V 2013
In: Journal of business ethics
Year: 2013, Volume: 117, Issue: 2, Pages: 387-398
Further subjects:B Business for social compliance initiative (BSCI)
B global supply chains
B Corporate social responsibility (CSR)
B Small- and medium-sized enterprises (SMEs)
Online Access: Volltext (JSTOR)
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Summary:Multinational corporations (MNCs) have come under pressure to adopt private regulatory initiatives such as supplier codes of conduct in order to address poor working conditions in global supply chain factories. While a well-known literature explores drivers and outcomes of such monitoring schemes, this literature focuses mainly on large firms and has ignored the growing integration of small- and medium-sized enterprises (SMEs) into global supply chains. Furthermore, the literature on corporate social responsibility (CSR) in SMEs primarily emphasizes domestic initiatives and not global challenges. Focusing on the Business for Social Compliance Initiative (BSCI), this article examines the positions of private actors, who demand and supply private regulation as well as the positions of those firms, who are the targets of such schemes. As the BSCI has grown its membership, MNCs increasingly request that SMEs meet BSCI requirements in global supply chains even though compliance is a “mission impossible” for many smaller firms. As a result of this development, the private regulatory system is facing growing strain.
ISSN:1573-0697
Contains:Enthalten in: Journal of business ethics
Persistent identifiers:DOI: 10.1007/s10551-012-1527-8