Social audits and multinational company supply chain: A study of rituals of social audits in the Bangladesh garment industry

Islam, Muhammad Azizul, Deegan, Craig, & Gray, Rob (2015) Social audits and multinational company supply chain: A study of rituals of social audits in the Bangladesh garment industry. In Accounting and Finance Association of Australia and New Zealand (AFAANZ) Conference, 5-8 July 2015, Hobart, TAS. (Unpublished)

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Abstract

This paper explores the motivation for the use of social audits in the supply chains of multinational companies (MNCs) sourcing clothing products from a developing nation. We investigate the practice of social audits in the supply chains of MNCs based upon a range of interviews with key operatives within the garment industry in Bangladesh. Our results show that social audits are typically not advancing workers’ rights but where there are advances, they occur because of the financial penalties that would otherwise be imposed on suppliers (through loss of contracts). Consistent with the notion of institutional decoupling, our results suggest that MNCs appear to use social audits as an instrument to maintain and re-establish their legitimacy rather than ensuring accountability to workers (who are the most affected stakeholders). This is the first known study that investigates how social audits are undertaken by MNCs sourcing products from a developing nation; the implications this has for supply chain claims; what motivations drive the adoption of such audits and what, if anything, are the likely outcomes from the process.

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ID Code: 98106
Item Type: Conference Item (Presentation)
Refereed: Yes
Keywords: Social Audit, Legitimacy, Supply Chains, Garment Industry, Developing nation
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2015 AFAANZ
Deposited On: 15 Aug 2016 23:11
Last Modified: 19 Aug 2016 14:45

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