Knowledge@Australian School of Business

CSR Accountability: Do Codes of Conduct Stop Suppliers from Dragging the Chain?


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Many big name corporations boast codes of conduct to ensure suppliers are responsible in environmental and workplace standards. Sounds promising, but how accountable are they? It's not hard for an unscrupulous contractor to pull the wool over a corporation's eyes. The Fair Labour Association finds an average 17 violations every time it conducts an audit, and many problems are recurring due to commercial pressures in supply chains. These days those who claim it's not possible to compete cost-wise and prioritise workplace human rights can look to China to see that raising standards and competitiveness are not mutually exclusive.

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