Beyond corporate codes of conduct: work organization and labor standards at Nike's suppliers

Citation

Locke, R. (2008), "Beyond corporate codes of conduct: work organization and labor standards at Nike's suppliers", Human Resource Management International Digest, Vol. 16 No. 1. https://doi.org/10.1108/hrmid.2008.04416aad.003

Beyond corporate codes of conduct: work organization and labor standards at Nike's suppliers

Beyond corporate codes of conduct: work organization and labor standards at Nike’s suppliers

Locke R., Kochan T., Romis M., Qin F. International Labor Review (Switzerland), 2007 Vol. 146 No. 1-2, Start page: 21, No. of pages: 20

Purpose – Considers how to develop an effective system for improving labor standards in the factories that supply multinational manufacturers. Design/methodology/approach – Describes the development of Nike’s code of conduct. Analyses the factory audits carried out by Nike to identify the factors that explained differences in the quality of the working conditions in supplier factories. Uses a matched-pair case study of two Mexican factories to understand how the relationship between Nike and its supplier companies can influence the patterns of work organization, production methods and human resource practices within supplier companies and improve working conditions. Sets out the implications of this for developing a system which will improve working conditions and labor regulation globally. Findings – Reports that Nike had developed different compliance relationships with the two Mexican factories and that this affected management practices and, consequently, working conditions. Concludes that pressure needs to be put on multinationals to develop effective codes of conduct; that these codes can be effective if they are integrated into the processes that govern the management of the supply chain; but that they to be complemented by effective national labor laws, support for suppliers to upgrade production and human resource management systems, and mechanisms for employee voice, such as trade unions. Research limitations/implications – Explains the research methods and develops research hypotheses. Originality/value – Identifies the factors that affected the effectiveness of code of conduct developed by Nike.ISSN: 0020-7780Reference: 36AY334

Keywords: Working Conditions, Multinationals, Suppliers, Developing countries, Employment law, Codes, Trade unions, Nike