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Global supply chains and social requirements: case studies of labour condition auditing in the People's Republic of China

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  • Ketty Kortelainen

Abstract

The purpose of this paper is to (1) discuss the usability of labour condition auditing as a tool, (2) identify main differences between quality and environmental auditing and labour condition auditing and (3) define typical improvement areas in a high technology supply chain in the People's Republic of China (hereafter ‘China’). The increased interest in labour conditions of global supply chains has driven companies to integrate corporate social responsibility (CSR) into supply chain management (SCM) practices. Companies face legal requirements as well as voluntary social requirements. This paper focuses on the empirical part of labour condition auditing at selected factories during 2003 and 2004. Findings from these audits include non‐conformances in health and safety, remuneration, working hours and disciplinary practices. Based on the experiences of the case studies, labour condition auditing is seen as a beneficial tool for inducing continuous improvement in supply chain management, but it requires a new set of skills from the auditors. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.

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  • Ketty Kortelainen, 2008. "Global supply chains and social requirements: case studies of labour condition auditing in the People's Republic of China," Business Strategy and the Environment, Wiley Blackwell, vol. 17(7), pages 431-443, November.
    • Handle: RePEc:bla:bstrat:v:17:y:2008:i:7:p:431-443
    DOI: 10.1002/bse.634
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    References listed on IDEAS

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    Cited by:

    1. Zhu, Qinghua & Lai, Kee-hung, 2019. "Enhancing supply chain operations with extended corporate social responsibility practices by multinational enterprises: Social capital perspective from Chinese suppliers," International Journal of Production Economics, Elsevier, vol. 213(C), pages 1-12.
    2. Gale Raj-Reichert, 2016. "Exposing forced labour in Malaysian electronics: the role of a social auditor in labour governance within a global production network," Global Development Institute Working Paper Series 052016, GDI, The University of Manchester.
    3. Anette von Ahsen, 2014. "The Integration of Quality, Environmental and Health and Safety Management by Car Manufacturers – a Long‐Term Empirical Study," Business Strategy and the Environment, Wiley Blackwell, vol. 23(6), pages 395-416, September.
    4. Laura Maria Ferri & Nelly Oelze & André Habisch & Mario Molteni, 2016. "Implementation of responsible Procurement Management: An Institutional Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 25(4), pages 261-276, May.
    5. Mohamed Basta & James Lapalme & Marc Paquet & Patrick Saint‐Louis & Tarek Abu Zwaida, 2018. "How are supply chains addressing their social responsibility dilemmas? Review of the last decade and a half," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 833-843, September.
    6. Elizabeth A. Bennett, 2018. "Extending ethical consumerism theory to semi-legal sectors: insights from recreational cannabis," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 295-317, June.
    7. Sadaat Ali Yawar & Stefan Seuring, 2017. "Management of Social Issues in Supply Chains: A Literature Review Exploring Social Issues, Actions and Performance Outcomes," Journal of Business Ethics, Springer, vol. 141(3), pages 621-643, March.
    8. Mani, Venkatesh & Gunasekaran, Angappa & Delgado, Catarina, 2018. "Supply chain social sustainability: Standard adoption practices in Portuguese manufacturing firms," International Journal of Production Economics, Elsevier, vol. 198(C), pages 149-164.
    9. Remigiusz Kozlowski & Marek Matejun, 2015. "The identification of difficulties in using advanced technologies in the implementation of projects," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 3(4), pages 41-60, November.
    10. Christina Niforou, 2015. "Labour Leverage in Global Value Chains: The Role of Interdependencies and Multi-level Dynamics," Journal of Business Ethics, Springer, vol. 130(2), pages 301-311, August.
    11. Kudla, Nicole & Stölzle, Wolfgang, 2011. "Sustainability Supply Chain Management Research," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 65(3), pages 263-301.
    12. Valentina Carbone & Valerie Moatti & Vincenzo Esposito Vinzi, 2012. "Mapping Corporate Responsibility and Sustainable Supply Chains: an Exploratory Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 475-494, November.
    13. Walter J.V. Vermeulen, 2015. "Self‐Governance for Sustainable Global Supply Chains: Can it Deliver the Impacts Needed?," Business Strategy and the Environment, Wiley Blackwell, vol. 24(2), pages 73-85, February.
    14. Francesco Testa & Olivier Boiral & Iñaki Heras‐Saizarbitoria, 2018. "Improving CSR performance by hard and soft means: The role of organizational citizenship behaviours and the internalization of CSR standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(5), pages 853-865, September.
    15. Hannes Hofmann & Christian Busse & Christoph Bode & Michael Henke, 2014. "Sustainability‐Related Supply Chain Risks: Conceptualization and Management," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 160-172, March.
    16. Darian McBain & Ali Alsamawi, 2014. "Quantitative accounting for social economic indicators," Natural Resources Forum, Blackwell Publishing, vol. 38(3), pages 193-202, August.
    17. Sartor, Marco & Orzes, Guido & Di Mauro, Carmela & Ebrahimpour, Maling & Nassimbeni, Guido, 2016. "The SA8000 social certification standard: Literature review and theory-based research agenda," International Journal of Production Economics, Elsevier, vol. 175(C), pages 164-181.
    18. Jonas Gamso, 2018. "Trade-based adoption of voluntary environmental programs in the developing world: Racing to the top or stuck in the mud?," Policy Sciences, Springer;Society of Policy Sciences, vol. 51(4), pages 515-543, December.
    19. Greg Distelhorst & Richard M. Locke & Timea Pal & Hiram Samel, 2015. "Production goes global, compliance stays local: Private regulation in the global electronics industry," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 224-242, September.
    20. Romy Morana & Stefan Seuring, 2011. "A Three Level Framework for Closed-Loop Supply Chain Management—Linking Society, Chain and Actor Level," Sustainability, MDPI, vol. 3(4), pages 1-14, April.
    21. Karen Maas & Sanne Rosendaal, 2016. "Sustainability Targets in Executive Remuneration: Targets, Time Frame, Country and Sector Specification," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 390-401, September.
    22. Nicola Dalla Via & Paolo Perego, 2018. "Determinants of Conflict Minerals Disclosure Under the Dodd–Frank Act," Business Strategy and the Environment, Wiley Blackwell, vol. 27(6), pages 773-788, September.

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