According to International Labour organization (ILO) (2005), states that the Corporate social responsibility professionals and managers examined that in the minds of the customers labour aspects are most important than their quality, price and range of their products. For example, In Cambodia garment factories, ILO best Cambodia projects has been showing the garment factories more importance to their employee’s benefits with best practices rather than looking into their profits (Welford & Frost, 2006).The market trend of different companies has been increasing the impact of corporate social responsibility all over their extended supply chains, whereas in complex situations different governments may initiate legal codes to implement levels of corporate social responsibility (CSR) behaviours and agreements (Boyd, et al., 2007). They do exists several types of codes for performance as there are too general. As that they prepare several approaches that allow companies to establish their own codes for effective performance. ILO statement on established basic idea and right at work place which are issued by the several organizations to validate human values. The statement covers four sectors those are as follows (figure: 3) (Boyd, et al., 2007).
Figure-3:-ILO statement covering four sectors (Boyd, et al., 2007).
Freedom of Unions is a basic human right and moreover it is a common activity where the labour can achieve their objectives at the starting stage. Several Corporate social responsibility managers expressed that they have seen more workers problems in countries like Cambodia, China, and Indonesia. The managers want the labour to identify their own rights that helps their companies to perform effectively (Welford & Frost, 2006). Emmelhainz and Adams (1999) illustrates that from the past decade, customers or businesses have been captured the labour issues in supply chain corporate social responsibility as several non-profit organizations revealed the warehouses and supply chain labour problems like rejecting labour of different industries. For example, overseas clothing manufacturers like Nike, and Wal-Mart as more important retail sector in United States. When comparing the clothing industry to food industry similar problems are found in relation to labour and human rights (Maloni & Brown, 2006).
Peter-Lund Thomsen and Adam Lind green (2014) explains that there is constant search for latest and improved techniques of improving corporate social responsibility in global supply chains in regards to organization activities. The latest collaborative model of corporate social responsibility in global supply chain has three attributes those are as follows:
a. Global customers requires to evaluate their purchasing policies and providing better prices for their suppliers as at the end company pays more salaries to the workers.
b. Companies following the capacity expansion for both the manager level and workers, as managers addresses training, quality and manufacturing process. Rather than evaluation of suppliers agreements or codes of conducts.
c. Communication in local languages with workers with respect to auditing procedure where workers easily communicate in trading hours of company (Thomsen & Lindgreen, 2014).
Holzer (2007) and Logsdon & Wood (2005) depicts that at the present era of globalization companies face more pressure to operate as a good large scale company and respects human , labour rights. In regards, companies implements ethical codes to provide acceptable working conditions in their supply chains to the workers. McWilliams and Siegel (2001) illustrates that corporate social responsibility gives a clear idea of derivation of the company reputation and it’s a possible beginning for the employees behaviour and attitudes (Lindgreen, et al., 2009).
Boyd, D. E., Spekman, R. E., Kamauff, J. W. & Werhane, P., 2007. Corporate Social Responsibility in Global Supply Chains:A Procedural Justice Perspective. Long Range Planning, 40(3), pp. 341-356.
Welford, R. & Frost, S., 2006. Corporate Social Responsibility in Asian Supply chains. Corporate Scoial Responsibility and Environmental Management, 13(3), pp. 166-176.
Maloni, M. J. & Brown, M. E., 2006. Corporate Social Responsibility in the supply chain:An application in the Food Industry. Journal of Business Ethics, September, 68(1), pp. 35-52.
Lindgreen, A., Maon, F. & Swaen, V., 2009. Corporate Social Responsibility in supply chains. Supply Chain MAnagement An International Journal, 14(2), pp. 71-74.
Thomsen, P. L. & Lindgreen, A., 2014. Corporate Social Responsibility in Global Value Chains: Where are We Now and Where are We Going?. Journal of Business Ethics, 123(1), pp. 11-22.ay in here…