Social Compliance Reporting in the Clothing Supply Chain: MNCs’ Disclosures on Social Compliance Measures Taken in Supply Chains

Muhammad Azizul Islam
Additional contact information
Muhammad Azizul Islam: Queensland University of Technology

Chapter Chapter 7 in Social Compliance Accounting, 2015, pp 67-78 from Springer

Abstract: Abstract With the global shift of production locations to developing nations, retail MNCs have started to express concern and address social performance in supply chains. For example, within the Bangladeshi clothing industry, from the early 1990s, the export-oriented clothing supply companies were blamed to utilise child labour. This had a negative impact on the industry’s reputation, because the supply companies have widespread interaction with retail MNCs and their reputation extends across national boundaries. The use of child labour, and the existence of dangerous working conditions in Bangladeshi supply companies that manufacture goods for retail MNCs, caused significant concern to those companies. MNCs became sensitive to the possible negative impacts on their reputation in North America and Europe, where the general public are more aware of issues surrounding child labour than the public in Bangladesh. Open discussion of such issues, and the ensuing pressures exerted in developed nations on MNC executives, forced a change in the operations of Bangladeshi supply companies, so that the credibility of MNC was not damaged further. This chapter provides some examples of social compliance reporting and auditing as a response to widespread global concerns over MNCs’ supply chains in developing nations.

Keywords: Supply Chain; Child Labour; Human Trafficking; Social Compliance; Global Reporting Initiative (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-319-09997-2_7

Ordering information: This item can be ordered from
http://www.springer.com/9783319099972

DOI: 10.1007/978-3-319-09997-2_7

Access Statistics for this chapter

More chapters in CSR, Sustainability, Ethics & Governance from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().