Abstract
This study investigates the use of social compliance audits in the supply chain of multinational corporations (MNCs). Particularly, we explore the use of such audits in assessing and managing the working conditions of factory workers in the garment industry in a developing nation. Through a range of interviews with MNCs’ internal auditors, with commissioned external auditors and with representatives of the suppliers in Bangladesh, this study finds that social compliance audits become ritual strategies and are not a primary means of advancing workers’ rights. Drawing on the concept of surrogate accountability, the study suggests that to create real change in workers’ conditions and in order to hold MNCs and their suppliers accountable, some form of surrogate (government, non-governmental organisations or media) intervention is necessary. This is, we argue, preferable to leaving it in the hands of ‘markets’ and simply waiting for another major incident such as Rana Plaza to stir public concern. This study contributes to the literature by investigating how social compliance audits are undertaken by MNCs sourcing products from a developing nation, what motivations drive the adoption of such audits, and what, if anything, are the likely outcomes from the process.
Original language | English |
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Pages (from-to) | 190-224 |
Number of pages | 35 |
Journal | Accounting and Business Research |
Volume | 48 |
Issue number | 2 |
Early online date | 11 Oct 2017 |
DOIs | |
Publication status | Published - Feb 2018 |
Bibliographical note
AcknowledgementsWe are pleased to acknowledge the helpful and stimulating responses from the participants at a seminar at Dundee University, the comments and suggestions from the participants at a seminar at the University of St Andrews, the comments from participants at AFAANZ Conference Melbourne, 2012 and AFAANZ Conference Hobart, 2015 as well as those from colleagues at the EMAN/CSEAR Conference in Helsinki, 2012.
Keywords
- social compliance audits
- surrogate accountability
- supply chain
- developing nations