1. Overview

Social compliance refers to an organisation’s adherence to certain social standards, including those related to child and forced labour, human trafficking, workers’ health and safety, salary and overtime and freedom of speech and association. Social compliance standard setters as well as corporate managers are dedicated to ensuring there are no violations of social compliance through organisational actions. Social compliance has become an important issue for multinational companies (MNCs) that source products from suppliers in developing nations. This study documents the social compliance accounting, auditing and reporting practices of MNCs and their suppliers who operate in developing countries. While the key focus of this study is the garment manufacturing industry, some examples from other industries are considered, in order to understand the broader perspective on social compliance within supply chains. While social compliance is now a major performance issue for MNCs who buy products from suppliers in developing countries, the issue remains relevant to practitioners, academics, and business students at both undergraduate and postgraduate levels.