Executive Briefings

Despite Promises, Have OEMs Been Able to Compel Suppliers to Create Safe Working Conditions for Employees?

When Jia Jingchuan, a 27-year-old electronics worker in Suzhou, China, sought compensation for the chemical poisoning he suffered at work, he appealed neither to his employer nor to his government. Instead, he addressed the global brand that purchased the product he was working on. "We hope Apple will heed to its corporate social responsibility."

Despite Promises, Have OEMs Been Able to Compel Suppliers to Create Safe Working Conditions for Employees?

In the past, his appeal would probably have fallen on deaf ears. But today, throughout the world, buyers in many industries have acknowledged a degree of responsibility for workplace conditions in supplier factories and pledged to ensure that the goods they eventually market are not made under abusive, dangerous, environmentally degrading, or otherwise unethical conditions. These businesses have committed to using private, voluntary regulation to address labor issues traditionally regulated by government or unions. And for the most part, the companies have acted on these commitments.

But have these private efforts improved labor standards? Not by much. Despite many good faith efforts over the past 15 years, private regulation has had limited impact. Child labor, hazardous working conditions, excessive hours, and poor wages continue to plague many workplaces in the developing world, creating scandal and embarrassment for the global companies that source from these factories and farms.

Read Full Article


Keywords: Supply Chain, Supply Chain Management, CSR, Corporate Social Responsibility, Supply Chain Responsibility, Supply Chain Labor, Labor Management, Supply Chain Risk Management

In the past, his appeal would probably have fallen on deaf ears. But today, throughout the world, buyers in many industries have acknowledged a degree of responsibility for workplace conditions in supplier factories and pledged to ensure that the goods they eventually market are not made under abusive, dangerous, environmentally degrading, or otherwise unethical conditions. These businesses have committed to using private, voluntary regulation to address labor issues traditionally regulated by government or unions. And for the most part, the companies have acted on these commitments.

But have these private efforts improved labor standards? Not by much. Despite many good faith efforts over the past 15 years, private regulation has had limited impact. Child labor, hazardous working conditions, excessive hours, and poor wages continue to plague many workplaces in the developing world, creating scandal and embarrassment for the global companies that source from these factories and farms.

Read Full Article


Keywords: Supply Chain, Supply Chain Management, CSR, Corporate Social Responsibility, Supply Chain Responsibility, Supply Chain Labor, Labor Management, Supply Chain Risk Management

Despite Promises, Have OEMs Been Able to Compel Suppliers to Create Safe Working Conditions for Employees?