David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Journal of Business Ethics 97 (1):119 - 138 (2010)
China has long enjoyed its position as the world's cheapest production country. However, this position is being shaken due to the increasingly rising costs in China in pace with China's rapid economic development. China's New Labour Contract Law which took effect from 1 January 2008 has further pushed the labour costs in China in general. The purpose of this article is to arrive at an in-depth understanding of why foreign firms conduct sourcing in China where sourcing is becoming increasingly expensive. The experiences of four Swedish companies in the textile and clothing industry (TCI) conducting sourcing in China are presented. Our findings show that sourcing in China is becoming both cost-and strategy-driven. Companies purely chasing the cheapest production would most probably consider leaving China, whereas companies with a long-term strategic intent and a high level of business ethics and corporate social responsibility (CSR) practices will retain all or most of their sourcing activities on the Chinese soil despite the rising costs
|Keywords||China CSR sourcing manufacturing price Swedish companies textile and clothing industry (TCI)|
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References found in this work BETA
Dima Jamali (2008). A Stakeholder Approach to Corporate Social Responsibility: A Fresh Perspective Into Theory and Practice. [REVIEW] Journal of Business Ethics 82 (1):213 - 231.
Sandra Waddock (2004). Creating Corporate Accountability: Foundational Principles to Make Corporate Citizenship Real. [REVIEW] Journal of Business Ethics 50 (4):313-327.
Xiaomin Yu (2008). Impacts of Corporate Code of Conduct on Labor Standards: A Case Study of Reebok's Athletic Footwear Supplier Factory in China. [REVIEW] Journal of Business Ethics 81 (3):513 - 529.
Daniel Arenas, Josep M. Lozano & Laura Albareda (2009). The Role of Ngos in Csr: Mutual Perceptions Among Stakeholders. [REVIEW] Journal of Business Ethics 88 (1):175 - 197.
Justin Tan (2009). Institutional Structure and Firm Social Performance in Transitional Economies: Evidence of Multinational Corporations in China. [REVIEW] Journal of Business Ethics 86 (2):171 - 189.
Citations of this work BETA
David Eriksson & Göran Svensson (forthcoming). The Process of Responsibility, Decoupling Point, and Disengagement of Moral and Social Responsibility in Supply Chains: Empirical Findings and Prescriptive Thoughts. Journal of Business Ethics.
Qinqin Zheng, Yadong Luo & Stephanie Lu Wang (2014). Moral Degradation, Business Ethics, and Corporate Social Responsibility in a Transitional Economy. Journal of Business Ethics 120 (3):405-421.
Bradley Lail, Jason MacGregor, Martin Stuebs & Timothy Thomasson (2015). The Influence of Regulatory Approach on Tone at the Top. Journal of Business Ethics 126 (1):25-37.
Dirk De Clercq, Narongsak Thongpapanl & Maxim Voronov (forthcoming). Sustainability in the Face of Institutional Adversity: Market Turbulence, Network Embeddedness, and Innovative Orientation. Journal of Business Ethics.
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