David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
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
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.
Terry Beckman, Alison Colwell & Peggy H. Cunningham (2009). The Emergence of Corporate Social Responsibility in Chile: The Importance of Authenticity and Social Networks. [REVIEW] Journal of Business Ethics 86 (2):191 - 206.
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Citations of this work BETA
Bradley Lail, Jason MacGregor, Martin Stuebs & Timothy Thomasson (forthcoming). The Influence of Regulatory Approach on Tone at the Top. Journal of Business Ethics.
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