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This paper seeks to identify the practical challenges of implementing a code of conduct in the supply chain management of multinational mobile phone industries from diverse cultural and legal contexts by analysing critically how a multinational company manages the CSR concept in its supply chain.

This study is based on qualitative interviews, analysis of codes of conduct and the practices of Sony Ericsson as well as of one of its suppliers.

Codes of conduct should be perceived differently within different contexts. Therefore, cultural and legal issues have to be considered when formulating and implementing codes of conduct, and when assessing compliance. The development of codes of conduct in the mobile phone industry is an ongoing process. Both cultural and legal challenges have to be considered.

Each company should define its own standards and limits of responsibility within the context of ethical sourcing, while some basic codes of conduct compliance should be forced on the whole mobile phone industry.