This paper chooses MNCs from the garment industry because of the frequent use of child workers. The five selected MNCs were from three European and two US companies with child labour provisions in their codes of conduct. They are: Levi Strauss, C&A, Nike, Adidas and Petland.
In order to obtain secondary research, the data are collected from companies’ sustainability reports, relative academic articles and case studies. Then the data will be used to identify:
1) When and why these MNCs start to engage in the sustainable supply chain management. What events happened during that time and did the events affects their strategies.
2) To be responsible for supply chain management ...view middle of the document...
It can explain that ‘originality’ and ‘courage’ make LS&Co adventurous and become the forerunner to establish a set of Global Sourcing and operating Guidelines based on NGOs and ILO’s regulation. ‘Empathy’ and ‘integrity’ make it considerate of and fair to everyone. LS&Co empathises itself with labour in the low-cost regions, that is why it keep improving working conditions and be responsible for supply chain management including impose standards of health and safety, prohibit children from sweatshop and offer philanthropic programmes.
David Love, the chief supply chain officer of LS&Co. corroborates that a worker’s well-being is important because it will not only benefit individual workers and their families, but improve efficiency and productivity. This will create the enabling environment for business success (Ceres 2012). Therefore, the motivation of setting TOE was not just an ethical imperative but LS&Co.’s corporate spontaneous mission.
Unlike other companies, C&A does not object third parties for external auditing (Kolk and Tulder 2004). It has established an independent and autonomous unit - Service Organisation for Compliance Audit Management (SOCAM) to oversee responsible business standards in merchandise buying on behalf of the C&A retail companies since 1996 (C&A Sustainability Report 2012).
According to C&A Sustainability Report (2012), child labour is unacceptable in any circumstances and is a serious infringement of the Code of Conduct. Therefore, in order to arrange unannounced visits to check factories, SOCAM take the following strategies:
Each C&A’s suppliers are asked to offer a list of their factories and subcontractors before SOCAM started its first auditing work. Investigators carry out more than 1,000 visits each year and the birth certificate should be shown to prove the age of the workers. C&A will penalise suppliers by suspending all orders if they do not achieve the standards auditing (Business Case Study 2014).
Philip Chamberlain, Head of Sustainable Business Development, explains that they need to focus on not only sustainability strategy of our own, but also of the complex supply chains. C&A will keep looking for improvement and listening to stakeholders’ opinion what they consider to be important to the company (C&A Sustainability Report 2012). Therefore, the motivation to establish SOCAM is a self-generated conscience, which reflects the value of its shareholders or the legacies of its founders. On the other hand, the responsibility expansion can be explained as a deeply rooted principle for the company as well as to pursuit further improvement from stakeholders’ expectation.
One of the factors of Nike’s success was the outsourcing of its all products to developing countries to reduce cost (Vogel 2005). However, as a successful company, Nike has been examined its behaviour in the spot light. In 1993 and 1996, Nike was found by the media that Indonesian workers were underpaid without freedom...