{"id":272,"date":"2007-09-01T00:00:00","date_gmt":"2007-09-01T00:00:00","guid":{"rendered":"https:\/\/d3.harvard.edu\/working-conditions-in-supply-chains\/2007\/09\/01\/suppliers-compliance-with-mncs-codes-of-conduct-behind-the-scenes-at-chinese-toy-suppliers\/"},"modified":"2025-09-24T19:18:15","modified_gmt":"2025-09-24T19:18:15","slug":"suppliers-compliance-with-mncs-codes-of-conduct-behind-the-scenes-at-chinese-toy-suppliers","status":"publish","type":"post","link":"https:\/\/d3.harvard.edu\/working-conditions-in-supply-chains\/2007\/09\/01\/suppliers-compliance-with-mncs-codes-of-conduct-behind-the-scenes-at-chinese-toy-suppliers\/","title":{"rendered":"Suppliers&#8217; Compliance with MNCs&#8217; Codes of Conduct: Behind the Scenes at Chinese Toy Suppliers"},"content":{"rendered":"<h2>Key Insights for Managers<\/emphasis><\/h2>\n<p>A study of nine Chinese factories supplying the three largest Swedish toy retailers found varying compliance with the buyers\u2019 codes of conduct, and concluded that many suppliers deceived auditors from detecting non-compliance. Based on more than 100 supplier employee interviews conducted in 2004, author Niklas Egels-Zand\u00e9n found that nearly all suppliers complied with the codes\u2019 criteria relating to child labor, but nearly half complied with the criteria governing minimum wage, overtime compensation, physical examination, and employee contract. Only a few complied in the domains of maximum working days and the provision of pension and accident insurance, only one met the health and safety criterion, and none complied with working hours. Overall, none of the suppliers complied in all areas, one third complied in just one single area, and less than one third complied with the majority of areas.<\/p>\n<p>In further interviews, the author found that the Swedish toy retailers were unaware of this poor compliance, which the author mainly attributed to factories having developed mechanisms to deceive auditors. Deception techniques discovered included managers instructing employees what to say to auditors, offering compensation for \u201ccorrect\u201d answers, forging salary lists and timecards (three), hiding part of the workforce, and forging employee contracts.<\/p>\n<p>\u00a0<\/p>\n<p><eztemplate name=\"microsite_prev_next\" ezxhtml_class=\"ez-custom-tag ez-custom-tag--attributes-visible\"><ezcontent><\/p>\n<p>\u00a0<\/p>\n<p><\/ezcontent><\/eztemplate><\/p>\n<p>\u00a0<\/p>\n<p><a href=\"https:\/\/www.researchgate.net\/profile\/Niklas_Egels-Zanden\/publication\/226016084_Suppliers'_Compliance_with_MNCs'_Codes_of_Conduct_Behind_the_Scenes_at_Chinese_Toy_Suppliers\/links\/00b495296e8f756c2c000000\/Suppliers-Compliance-with-MNCs-Codes-of-Conduct-Behind-the-Scenes-at-Chinese-Toy-Suppliers.pdf\">Link to the Full Text<\/a> <\/p>\n<p><strong>Geography<\/strong>: China, Sweden<\/p>\n<p><strong>Industry<\/strong>: Toys<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Multinational codes of conduct in Chinese toy factories are linked to low compliance of labor standards due to suppliers deceiving monitoring organizations.<\/p>\n","protected":false},"author":19149,"featured_media":273,"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":[77,66,86,144],"tax_cop":[],"rkv-people-shadow":[20],"insight_type":[],"class_list":["post-272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audits-auditors","category-codes-of-conduct","tag-corporate-social-responsibility-csr","tag-labor-conditions","tag-multinational-corporations-mnc","tag-supplier-audits"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Suppliers&#039; 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