This article discusses China’s attempts to industrialize from the late nineteenth century until the Japanese occupation of 1937. It focuses on the woollen industry and uses data from industrial investigations, market information and company archives. Several attempts to build a woollen industry from the 1880s to the end of the First World War failed. However, in the 1920s and 1930s some private companies in Tianjin, Shanghai and the Yangzi Delta succeeded in managing profitable woollen workshops and mills. An export-based carpet (...) industry was developed in Tianjin while a network of workshops and integrated mills flourished in Shanghai and the Yangzi Delta to supply woollen goods for civilian clothing in the Chinese urban markets. This article aims to contribute to the debate of China’s late industrialization by looking at the structure of the woollen industry and its alignment with actual consumer demands. (shrink)

Recent discussions in the area of corporate social responsibility suggest that organizational size has complex meanings and thus requires more scholarly attention. This article explores organizational size in the context of relative power in inter-organizational networks. To shed light on the ways relative power interacts with size we studied social responsibility practices among cleaning subcontractors in three firms of different sizes. Our focus on the network differentiates these firms on the basis of their size and sector. Semi-structured interviews were (...) used to trace cleaning subcontractors' CSR-related practices. We analyzed subjective reports and discursive practices involved in subcontractors' self-presentations. While the economic and philanthropic dimensions of social responsibility were presented by the cleaning subcontractors as independent of network constraints, the findings show that the legal and ethical dimensions were subject to large client-firm pressures. What we learn from our data is that the four dimensions of Carroll's model, the economic, legal, ethical, and philanthropic, should all develop from and be evaluated against a fifth root dimension of inter-personal commitment. (shrink)

Despite the importance of the interorganizational nature of the marketing research process, very little research has addressed how research organizations differ and how they affect each other in the conduct of ethical marketing research. The purpose of this study is to examine differences among three typical participants in the research process: corporate research departments, marketing research firms, and data subcontractors. These organizations were examined with respect to having and enforcing internal codes of conduct and the awareness and enforcement of (...) external codes of conduct. By exploring these differences, this study should help marketing researchers better understand the relationships among participants in the research process. Understanding these differences is the first step toward controlling the potential for ethical conflict among research participants. (shrink)

This article applies the Kantian doctrine of respect for persons to the problem of sweatshops. We argue that multinational enterprises are properly regarded as responsible for the practices of their subcontractors and suppliers. We then argue that multinationalenterprises have the following duties in their off-shore manufacturing facilities: to ensure that local labor laws are followed; to refrain from coercion; to meet minimum safety standards; and to provide a living wage for employees. Finally, we consider and reply to the objection (...) that improving health and safety conditions and providing a living wage will cause greater harm than good. (shrink)

Poor working conditions remain a serious problem in supplier facilities in developing countries. While previous research has explored this from the developed buyers’ side, we examine this phenomenon from the perspective of developing countries’ suppliers and subcontractors. Utilizing qualitative data from a major knitwear exporting cluster in India and a stakeholder management lens, we develop a framework that shows how the assumptions of conventional, buyer-driven voluntary governance break down in the dilution of buyer power and in the web of (...) factors rooted in suppliers’ traditions, beliefs, local demands and resource dependency. We reveal out how success in governing collaborative global supply chains often falls short within the subcontracting stage, where a stakeholder management mindset is elusive to most participants. We suggest that success in governing collaborative global supply chains is dependent on concepts of stakeholder utility and the presence of shared value that is often at odds with the realities of power, information asymmetry and compliance/reward systems inherent in the non-market coordination of global supply chains. Our findings offer important insights for delineating the concepts of value creation from CSR concepts and practices, and for modifying the basic assumptions of conventional supply chain governance. (shrink)

The starting point of this paper is the need to promote a people-centred corporate social responsibility framework in a context where many human needs and rights remain unsatisfied and where businesses may have both a positive and a negative impact on the quality of life of human beings today and tomorrow and may even lead to irreversible damage. Our normative definition of CSR is consistent with the criteria established by the EU Commission in 2011. We conceive CSR as a responsibility (...) towards human development in two complementary ways: a holistic responsibility shared by companies together with other actors to safeguard humanity and a direct liability of each company for its impact on stakeholders' capabilities. We apply Nussbaum's list of central capabilities and concept of thresholds to specify the nature and extent of corporate responsibilities towards employees, subcontractors, investors, customers, and humanity as a whole. In addition, we leverage fieldwork in developing and developed countries to analyse the effect of business activities on human capabilities. We demonstrate that by quantifying the impact of businesses' activities on various dimensions of stakeholders' lives, and especially on the most vulnerable ones, these businesses can be held accountable for the negative externalities they produce. (shrink)

Ethical or ‘socially sustainable’ sourcing mechanisms mandating labour standards among the suppliers and subcontractors that organisations source goods and services from are becoming more common. The issue of how labour activist groups such as trade unions can encourage organisations to adopt and strengthen these mechanisms within domestic production networks is largely unexplored. Using three cases of domestic sustainable sourcing campaigns developed by unions in Britain, the strategies used by labour activists, the characteristics of the organisations targeted and the motivations (...) of lead firms for improving sourcing practices are analysed. The article makes a significant contribution by demonstrating that organisational susceptibility to reputational risk is a key factor influencing the capacity of activist groups to convince and compel their targets to improve sourcing practices. It argues that different types of organisations are susceptible to reputational damage in different ways, that risk events provide opportunities for unions to strengthen their leverage against target organisations, and that the multidimensional nature of corporate reputation needs to be better considered for understanding how campaigns are framed and executed. (shrink)

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

The paper sketches an account of explanatory practice in which explanations are viewed as answers to explanation-requiring questions. To avoid difficulties in previous proposals, the paper uses the structuralist account of theory structure, arguing that theories are complex and evolving entities formed around a conceptual core and a set of intended applications. The argument is that this view does better justice to theories which involve a number of different kinds of theory-elements to give narrative explanations. Theories are, among other things, (...) devices which can be used to turn explanation-requiring questions into a form which allows assessment of potential answers. Evolutionary theory, both in Darwin's and the modern synthetic forms, are used as examples. The view advanced is that modern evolutionary theory need not have a unique core to which other theories serve as subcontractors. (shrink)

According to the reports in the past decade, some Asian subcontractors, mainly Taiwan, Hong Kong and Korea transnational corporations, tend to be labor abusive in their overseas investment destinations like China or Southeast Asia. Taking Vietnam as an example, this paper raises questions as to why Taiwanese transnational companies can control workplace unions in a trade-union-supportive regime. Given the government s constraint of political rights, and the individualized workplace unions, the function of trade unions in Vietnam is destined to (...) be limited. The trade unions turn out be an arm of management, rather than representing workers interests in these transnational companies. This article also explores the influence of the newly developed codes of conducts from Western buyers. In the survey of three companies which are required to follow the codes of conduct by buyers, trade unions had no more freedom than those in companies without codes of conduct. The paper discusses the implications of this research, offering strategies for labor rights improvements. (shrink)

Peter Frankental, Head of Business Networks, Amnesty International, explores the role of The UN Universal Declaration of Human Rights as a corporate code of conduct. Frankental observes a changing business context, which overall increases the risk to business of dealing with other parties, including countries, subcontractors, joint venture partners and their stockholders. The paper proceeds to examine the barriers to integration of human rights, and identifies dilemmas that firms need to resolve. While in the author’s view ethical behaviour does (...) not confer competitive advantages in the short run, companies that base their codes of conduct on the UN Universal Declaration of Human Rights are likely to find themselves in the stronger position to protect their reputation, brands and assets in the longer term. (shrink)

Developers and vendors of large language models (“LLMs”) — such as ChatGPT, Google Bard, and Microsoft’s Bing at the forefront—can be subject to Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) when they process protected health information (“PHI”) on behalf of the HIPAA covered entities. In doing so, they become business associates or subcontractors of a business associate under HIPAA.

Corporate Reputation (CR) is essential to value generation and is co-created between a company and its stakeholders, including supply chain actors. Consequently, CR is a critical and valuable resource that should be managed carefully along supply chains. However, the current CR literature is fragmented, and a general definition of CR is elusive. Besides, the academic CR debate largely lacks a supply chain perspective. This is not surprising, as it is very difficult to collect reliable data along supply chains. When supply (...) chains span the globe, data collection is especially challenging, as the chain consists of multiple suppliers and subcontractors, positioned at different tier levels. Recognizing this, the paper examines firstly the current state of CR research through a systematic literature review from a business perspective. The review is combined with a bibliometric mapping approach to show the most influential research clusters, representative of CR research streams and their contributors. This process highlights that the connection between CR and supply chain issues represents a major research gap. Consequently, this paper introduces a research agenda connecting these the two traditionally separated research fields. (shrink)

The paper analyzes managers’ stance toward the ethical responsibility of those who work for multinational garment retailers. Most are charged with the social compliance policies affecting relationships with subcontractors. This study is based on interviews conducted with major European and American retailers. Our research question is: what is the normative stance of our respondents? We find that they reject the ideological way in which the normative debate on sweatshops has been conducted by business ethicists during the last decades. These (...) executives’ implicit conception and scope of their moral responsibility is much more in line with Iris Young’s (2006) conception of ‘political responsibility’. This managerial ethical position has not been adequately captured by earlier writings on this topic. In general, the managerial ethical framing of issues like child labor, minimally decent labor conditions, a living wage, etc. is at odds with how these issues are usually treated in the philosophical debates around sweatshops. Examining both visions allows us to better grasp the pragmatic normative stance of business practitioners as well as the dynamics of social compliance policies. In the conclusion, we draw both management lessons and research implications for more ethical interactions with suppliers. (shrink)

This case explores the ethical dilemmas faced by Wolfgang Thierse and other board members of the Memorial Foundation for the Murdered Jews of Europe. They must decide whether Degussa AG, a memorial subcontractor, can continue working on the memorial, despite Swiss andGerman media reports that a former subsidiary of Degussa’s, named Degesch, manufactured and supplied the nerve gas that killed Jews and other individuals in the Auschwitz concentration camp. The board’s decision is complicated by negative publicity the memorial has received, (...) by the fact that Degussa has already applied its anti-graffiti coating to some of the pillars that form the memorial’s main design, and by questions of whether the board exercised due diligence when Degussa was originally proposed as a project subcontractor. Students are asked to help Thierse reach a personal decision about Degussa’s continued participation and, in his role as board chair, formulate a discussion strategy for the upcoming, potentially volatile board meeting. (shrink)

Over a period of 19 months in 2006 and 2007, Mattel recalled approximately 14 million toys. The company was subjected to numerous lawsuits and regulatory actions and suffered severe damage to its reputation. Two issues were involved: excessive levels of lead in numerous toy surface paints and small detachable magnets in some toys, which could be swallowed. An examination of the facts shows that two different ethical situations were involved—one concerning product design and the other concerning manufacturing practices of Mattel's (...) Chinese contractors and subcontractors. The ethical obligations of the company and individuals within the company in the two situations were quite different, and illustrate problems faced by companies in managing their global supply chains. (shrink)

In this paper we present a framework for describing cooperative work in informal domains such as an office. We argue that standard models of such work are inadequate for describing the adaptibility and variability observed in offices, and are fundamentally misleading as metaphors for understanding the skills and knowledge needed by computers or people to do the work. The basic claim in our alternative framework is that an agent's work is defined in terms of making and fulfilling commitments to other (...) agents, and that the tasks described in those commitments are merely agreed upon methods for fulfilling the commitments. Determining the intended meaning of those task descriptions in specific situations is an important component of the work, and the agents making the commitments decide in any given situation how and whether a given commitment has been fulfilled. We analyze subcontracting relationships, noting that the task's client and contractor both play a role in defining the subcontractor's work. Also, we analyze the use and role of procedures in informal domains, noting the interdependencies among the agents performing them, the problem solving required to perform each step, and ways in which they can be made more adaptive. Our analysis indicates that “intelligent” capabilities such as planning, plan monitoring, and negotiation are required to do even simple cooperative work. (shrink)