{"id":246,"date":"2009-09-01T00:00:00","date_gmt":"2009-09-01T00:00:00","guid":{"rendered":"https:\/\/d3.harvard.edu\/working-conditions-in-supply-chains\/2009\/09\/01\/virtue-out-of-necessity-compliance-commitment-and-the-improvement-of-labor-conditions-in-global-supply-chains\/"},"modified":"2025-09-24T19:18:10","modified_gmt":"2025-09-24T19:18:10","slug":"virtue-out-of-necessity-compliance-commitment-and-the-improvement-of-labor-conditions-in-global-supply-chains","status":"publish","type":"post","link":"https:\/\/d3.harvard.edu\/working-conditions-in-supply-chains\/2009\/09\/01\/virtue-out-of-necessity-compliance-commitment-and-the-improvement-of-labor-conditions-in-global-supply-chains\/","title":{"rendered":"Virtue Out of Necessity?: Compliance, Commitment and the Improvement of Labor Conditions in Global Supply Chains"},"content":{"rendered":"

Key Insights for Managers<\/emphasis><\/h2>\nFirms often audit their global suppliers using a traditional compliance-based approach that threatens to sever the relationship if suppliers fail to comply with the buyer\u2019s code of conduct. This study by Richard Locke, Matthew Amengual, and Akshay Mangla suggests that firms will be more successfully achieve their goals of suppliers\u2019 complying with codes of conduct if the firms instead embrace a more cooperative auditing approach that emphasizes a shared commitment to improvement through root cause analysis, joint problem solving, information sharing, and best practice diffusion.\u00a0\n

This conclusion results from the analysis of a major apparel company\u2019s global supply chain, including more than 300 interviews with the apparel firm\u2019s managers, auditors, and supply chain factories\u2019 managers and workers in Bangladesh, China, Dominican Republic, Honduras, and India. The study provides detailed examples of how using a commitment-oriented approach led to better labor standards in factories in the Dominican Republic, Honduras, and India.<\/p>\n

\u00a0<\/p>\n

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

Geography<\/strong>: Bangladesh, China, India, Dominican Republic, Honduras<\/p>\n

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

Suppliers improve labor standards more when auditors diffuse best practices and engage in joint problem solving and root-cause analysis, rather than threaten penalizing non-compliance.<\/p>\n","protected":false},"author":19149,"featured_media":247,"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],"tags":[83,88,67,66,48],"tax_cop":[],"rkv-people-shadow":[26,11,143],"insight_type":[],"class_list":["post-246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audits-auditors","tag-apparel-industry","tag-auditing","tag-compliance","tag-labor-conditions","tag-labor-standards"],"yoast_head":"\nVirtue Out of Necessity?: 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