{"id":244,"date":"2020-08-01T00:00:00","date_gmt":"2020-08-01T00:00:00","guid":{"rendered":"https:\/\/d3.harvard.edu\/working-conditions-in-supply-chains\/2020\/08\/01\/improving-working-conditions-in-global-supply-chains-the-role-of-institutional-environments-and-monitoring-program-design\/"},"modified":"2025-09-24T19:18:09","modified_gmt":"2025-09-24T19:18:09","slug":"improving-working-conditions-in-global-supply-chains-the-role-of-institutional-environments-and-monitoring-program-design","status":"publish","type":"post","link":"https:\/\/d3.harvard.edu\/working-conditions-in-supply-chains\/2020\/08\/01\/improving-working-conditions-in-global-supply-chains-the-role-of-institutional-environments-and-monitoring-program-design\/","title":{"rendered":"Improving Working Conditions in Global Supply Chains: The Role of Institutional Environments and Monitoring Program Design"},"content":{"rendered":"

Key Insights for Managers<\/emphasis><\/h2>\n

Firms often rely on code-of-conduct auditing to assess the working conditions of their suppliers at the time of the audit. But it would be helpful to know which suppliers are more likely to improve or worsen their working conditions. Analyzing over 8,000 code-of-conduct audits, Jodi Short, Michael Toffel, and Andrea Hugill identify several factors that predict which suppliers improve their compliance with labor codes of conduct. First, their results suggest that auditors don\u2019t merely document conditions on the ground, but also appear to transfer knowledge that can help suppliers improve. Suppliers exhibit greater improvement in working conditions\u2014and especially regarding occupational health and safety\u2014after more-highly-trained auditors conduct pre-announced audits, consistent with the notion that more learning occurs when better-trained teachers operate in more learning-conducive environments. They also find that suppliers are more likely to improve when they face greater risk of expos\u00e9s by being located in countries with more NGOs and higher levels of press freedom. Greater risks were associated with suppliers improving more along all dimensions the study analyzed, including child labor, working hours, minimum wage, and occupational health and safety concerns. Larger improvements in working conditions were\u00a0also found among suppliers who served buyers that have received negative press coverage for supply chain labor abuse. Such experience may make those buyers more attentive to the issue in order to avoid recurrences of bad press. The study was based on audits obtained from one large auditing firm that audited suppliers during 2004-2009 from across 13 industries and 66 countries; more than 70% were conducted in China. The most prevalent supplier industries were garments, accessories, electronics, and toys.<\/p>\n

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Link to the Full Text<\/a> <\/p>\n

Geography<\/strong>: <\/p>\n

Industry<\/strong>: Clothing, Toys, Electronics<\/p>\n","protected":false},"excerpt":{"rendered":"

Suppliers improve working conditions more after pre-announced audits conducted by highly-trained auditors, and when they\u2014or their buyers \u2014face greater expos\u00e9 risk for problematic supply chain working conditions.<\/p>\n","protected":false},"author":19149,"featured_media":245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_trash_the_other_posts":false,"rkv_hide_featured_image":false,"rkv_hide_page_title":false,"rkv_hide_abstract_shapes":true,"rkv_reduce_header":false,"hbsd3_featured_media_url":"","hbsd3_featured_media_url_autoplay":false,"editor_notices":[],"footnotes":""},"categories":[37,65],"tags":[41,67,141,48],"tax_cop":[],"rkv-people-shadow":[32,35,142],"insight_type":[],"class_list":["post-244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audits-auditors","category-codes-of-conduct","tag-audits","tag-compliance","tag-decoupling","tag-labor-standards"],"yoast_head":"\nImproving Working Conditions in Global Supply Chains: The Role of Institutional Environments and Monitoring Program Design - Working Conditions in Supply Chains<\/title>\n<meta name=\"robots\" content=\"index, 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