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Über dieses Buch

This book covers key discussions involving major US and European multinational companies (MNCs) that source products from suppliers in developing countries. Due to the transfer of production from developed to developing nations, there is an urgent need to establish social compliance as a new form of Corporate Social Responsibility (CSR) and a means by which MNCs can meet expected social standards. The cases described are internationally relevant and can be seen to reflect or represent the behavior of many MNCs and their suppliers in developing nations. The discussion offers essential insights into how different levels of social compliance risk and pressure (including broader stakeholder concerns) move managers to adopt or embrace particular social compliance accounting, reporting and auditing strategies. The book will help readers to understand the major concerns, challenges and dilemmas faced by management in the supply chains of MNCs, and proposes measures that can be taken to resolve those dilemmas. Most importantly, it develops a systematic method of assessing the social compliance performance of suppliers to MNCs. This includes highly detailed accounts of the social compliance performance of suppliers within the clothing industry (in a developing nation) that supply goods to the extensive US and European markets. The book offers a valuable guide, not only for corporate managers but also for practitioners, researchers, academics, and undergraduate and postgraduate business students.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Overview

Abstract
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.
Muhammad Azizul Islam

Chapter 2. Social Accounting

Abstract
The central aim of this chapter is to discuss social accounting and associated research. In doing so, the chapter identifies a key research gap. So far within social accounting literature, social compliance has not been the focus area of research, despite its widespread implications within global supply chains. The chapter begins with the definition of social accounting which existing research has considered. It then discusses prior social accounting research in order to discern the key research gap. The chapter ends by identifying the main research area to be addressed in the following chapters.
Muhammad Azizul Islam

Chapter 3. Social Compliance Accounting, Auditing and Reporting

Abstract
This chapter introduces social compliance accounting, auditing and reporting. Social compliance accounting refers to measuring, understanding and reporting an organisation’s social compliance performance. Social compliance auditing is an effective way for organisations to fulfil their social and ethical obligations. Social compliance reporting is a subset of social compliance accounting and auditing which deals with the disclosure of information by an organisation about social compliance performance. The chapter provides some important practical insights about corporate social compliance which have never been considered within the academic literature.
Muhammad Azizul Islam

Chapter 4. Social Compliance and Corporate Legitimacy Within Supply Chains: A Theoretical Framework

Abstract
The discussion in the previous chapter leads to a consideration of a theoretical framework that seeks to understand the managerial motivations underlying the organisation’s social compliance accounting, reporting and auditing practices. In order to gain an in-depth understanding of such motivations for companies sourcing products from suppliers located in developing nations, this chapter discusses legitimacy theory. Legitimacy theory is considered to be the appropriate theory to understand social accounting and reporting practices by many social and environmental accounting researchers.
Muhammad Azizul Islam

Chapter 5. Legitimacy Threats and Stakeholder Concerns Within Supply Chains

Abstract
Legitimacy threatening incidents (such as the use of child labour, human trafficking, factory collapses and fires, and poor health and safety standards) within MNCs’ supply chains operating in developing nations have drawn global criticism. The purpose of this chapter is to provide an overview of social incidents within supply chains which can threaten legitimacy, and which corporate managers and auditors must not overlook. In particular, some specific examples of major social incidents within supply chains, which have created significant concerns for MNCs as well as the global community, will be discussed.
Muhammad Azizul Islam

Chapter 6. A Brief Overview of the Regulations for Disciplining Social Compliance within Supply Chains

Abstract
In this chapter, discussion of regulatory environments within the supply chains of MNCs will be provided. In particular, the California Transparency in Supply Chains Act of 2010, the key regulation pertaining to accountability in supply chains, will be discussed. While many MNCs are particularly dependent on international production and purchasing, pressure on them from various stakeholder groups pushing for socially responsible production has also grown significantly. Stakeholder concerns over social and human rights are becoming a key issue in major strategic international business decisions.
Muhammad Azizul Islam

Chapter 7. Social Compliance Reporting in the Clothing Supply Chain: MNCs’ Disclosures on Social Compliance Measures Taken in Supply Chains

Abstract
With the global shift of production locations to developing nations, retail MNCs have started to express concern and address social performance in supply chains. For example, within the Bangladeshi clothing industry, from the early 1990s, the export-oriented clothing supply companies were blamed to utilise child labour. This had a negative impact on the industry’s reputation, because the supply companies have widespread interaction with retail MNCs and their reputation extends across national boundaries. The use of child labour, and the existence of dangerous working conditions in Bangladeshi supply companies that manufacture goods for retail MNCs, caused significant concern to those companies. MNCs became sensitive to the possible negative impacts on their reputation in North America and Europe, where the general public are more aware of issues surrounding child labour than the public in Bangladesh. Open discussion of such issues, and the ensuing pressures exerted in developed nations on MNC executives, forced a change in the operations of Bangladeshi supply companies, so that the credibility of MNC was not damaged further. This chapter provides some examples of social compliance reporting and auditing as a response to widespread global concerns over MNCs’ supply chains in developing nations.
Muhammad Azizul Islam

Chapter 8. Social Compliance Reporting from Suppliers’ Perspectives: A Case Study of the BGMEA

Abstract
This chapter discusses social compliance performance reporting by a major supply body in a developing nation, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). In particular, the chapter provides a general understanding of the nature and types of social performance activities and associated disclosures by the BGMEA. As you read, you will find out how BGMEA discloses its social compliance performance information in relation to child labour and working conditions as a response to international concerns (as discussed in the previous chapter). The chapter comprises sections including a brief background of the BGMEA, discussion of the BGMEA annual report disclosures, the BGMEA online disclosures, and the BGMEA codes of conduct.
Muhammad Azizul Islam

Chapter 9. Stakeholder Evaluation of Social Compliance Performance of Clothing Suppliers: Evidence from a Supply Country

Abstract
The previous chapter documents the social compliance reporting of a major supply body in Bangladesh, the BGMEA. However, while organisations use social compliance reporting to maintain their legitimacy, it is a challenge to understand whether such reporting reflects the actual performance of the organisation. Further, there is a complete lack of research (either in developing or developed countries) which seeks the direct views of stakeholder groups to understand the expectations being exerted on managers and perceptions of social performance activities by managers. Therefore, the aim of this chapter is to document both managerial and stakeholder perceptions about the social compliance performance of suppliers in Bangladesh. Further, the researcher investigates whether and how a major industry body in Bangladesh, the BGMEA, responds to the expectations of the powerful stakeholder groups in the clothing industry.
Muhammad Azizul Islam

Chapter 10. Stakeholder Network and Corporate Legitimacy: An Extended Analysis

Abstract
The stakeholder network is an important contributing factor in influencing corporations to be socially and ethically accountable. This chapter summarises some of the roles of the stakeholders discussed in the prior chapters with the help of an extended analysis of legitimacy theory. Members of the stakeholder network, in particular, the media and NGOs, are the focus of the discussion. The chapter concludes with a theoretical model derived from stakeholder network and legitimacy theory.
Muhammad Azizul Islam

Chapter 11. Conclusion

Abstract
This book explores the social compliance accounting, auditing and reporting practices of MNCs and their suppliers who operate in developing nations. Each of the chapters provides in-depth insight on social compliance issues and associated accounting and reporting practices. The following key findings of each chapter are summarised below:
Muhammad Azizul Islam

Backmatter

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