Embedding CSR values

The global footwear industry's evolving governance structure

Research output: Contribution to journalReview article

91 Citations (Scopus)

Abstract

Many transnational corporations and international organizations have embraced corporate social responsibility (CSR) 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.

Original languageEnglish
Pages (from-to)143-156
Number of pages14
JournalJournal of Business Ethics
Volume81
Issue number1
DOIs
Publication statusPublished - 2008 Aug 1

Fingerprint

social responsibility
governance
industry
supplier
Values
incentive
monitoring
subcontractor
firm
Governance
Industry
Corporate Social Responsibility
Footwear
Governance structure
Footwear industry
market
International Organizations
working conditions
factory
habits

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics and Econometrics
  • Business, Management and Accounting(all)

Cite this

@article{ad5a206749854ec09a001eced9dc6cfd,
title = "Embedding CSR values: The global footwear industry's evolving governance structure",
abstract = "Many transnational corporations and international organizations have embraced corporate social responsibility (CSR) 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.",
author = "Lim, {Suk Jun} and Phillips, {Joe Carroll}",
year = "2008",
month = "8",
day = "1",
doi = "10.1007/s10551-007-9485-2",
language = "English",
volume = "81",
pages = "143--156",
journal = "Journal of Business Ethics",
issn = "0167-4544",
publisher = "Springer Netherlands",
number = "1",

}

Embedding CSR values : The global footwear industry's evolving governance structure. / Lim, Suk Jun; Phillips, Joe Carroll.

In: Journal of Business Ethics, Vol. 81, No. 1, 01.08.2008, p. 143-156.

Research output: Contribution to journalReview article

TY - JOUR

T1 - Embedding CSR values

T2 - The global footwear industry's evolving governance structure

AU - Lim, Suk Jun

AU - Phillips, Joe Carroll

PY - 2008/8/1

Y1 - 2008/8/1

N2 - Many transnational corporations and international organizations have embraced corporate social responsibility (CSR) 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.

AB - Many transnational corporations and international organizations have embraced corporate social responsibility (CSR) 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.

UR - http://www.scopus.com/inward/record.url?scp=45749093400&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=45749093400&partnerID=8YFLogxK

U2 - 10.1007/s10551-007-9485-2

DO - 10.1007/s10551-007-9485-2

M3 - Review article

VL - 81

SP - 143

EP - 156

JO - Journal of Business Ethics

JF - Journal of Business Ethics

SN - 0167-4544

IS - 1

ER -