Impacts of Corporate Code of Conduct on Labor Standards: A Case Study of Reebok’s Athletic Footwear Supplier Factory in China

Journal of Business Ethics 81 (3):513-529 (2008)

Abstract
This study examines the social impacts of labor-related corporate social responsibility policies or corporate codes of conduct on upholding labor standards through a case study of CSR discourses and codes implementation of Reebok - a leading branded company enjoying a high-profiled image for its human rights achievement - in a large Taiwanese-invested athletic footwear factory located in South China. I find although implementation of Reebok labor-related codes has resulted in a "race to ethical and legal minimum" labor standards when notoriously inhumane and seriously illegal labor rights abuses were curbed, Chinese workers were forced to work harder and faster but, earned less payment and the employee-elected trade union installed through codes implementation operated more like a "company union" rather than an autonomous workers' organization representing worker' interests. In order to explain the paradoxical effects of Reebok labor-related codes on labor standards, I argue the result is determined by both structural forces and agency-related factors embedded in industrial, national and local contexts. To put it shortly, I find the effectiveness of Reebok labor-related codes is constrained not only by unsolved tension between Reebok's impetus for profit maximization and commitment to workers' human rights, but also by hard-nosed competition realities at marketplace, and Chinese government's insufficient protection of labor rights. Despite drawing merely from a single case study, these findings illuminate key determinants inhibiting the effectiveness of labor-related CSR policies or codes in upholding labor standards, and hence two possible way-outs of the deadlock: sharing cost for improving labor standards among key players in global supply chain; and combining regulatory power of voluntary codes and compulsory state legislations.
Keywords Philosophy   Quality of Life Research   Management/Business for Professionals   Economic Growth   Ethics
Categories (categorize this paper)
DOI 10.1007/s10551-007-9521-2
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

Our Archive


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 46,206
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

Toward a Unified Theory of the CSP–CFP Link.Isaiah Yeshayahu Marom - 2006 - Journal of Business Ethics 67 (2):191-200.

Add more references

Citations of this work BETA

View all 34 citations / Add more citations

Similar books and articles

Switching Costs as a Potential Motivator of Organizational Decoupling of Ethical Supplier Commitments.Scott R. Colwell & Michael J. Zyphur - 2007 - Proceedings of the International Association for Business and Society 18:9-11.

Analytics

Added to PP index
2016-02-04

Total views
11 ( #729,891 of 2,285,686 )

Recent downloads (6 months)
5 ( #251,846 of 2,285,686 )

How can I increase my downloads?

Downloads

My notes

Sign in to use this feature