The Transparent Supply Chain:
from Resistance to Implementation at Nike and Levi-Strauss |
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Authors: | David J Doorey |
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Institution: | (1) INSEAD Chaired Professor of Ethics and Social Responsibility, INSEAD, Boulevard de Constance, 77305 Fontainebleau Cedex, France |
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Abstract: | Information disclosure is a common regulatory tool designed to influence business behavior. A belief is that transparency
can provoke learning and also positive institutional change by empowering private watchdogs to monitor and pressure business
leaders to alter harmful behavior. Beginning in the late 1990s, a private movement emerged that pressured corporations to
disclose the identify of their global supplier factories. These activists believed that factory disclosure would lead to greater
accountability by corporations for the working conditions under which their products are made, which in time would improve
labor practices. In 1995, Nike and Levi-Strauss (Levis) surprised the business community by publishing their supplier lists.
This paper describes case studies of Nike and Levis, tracking the evolution from resistance to supply chain transparency through
to the decision to be industry leaders in factory disclosure. The paper evaluates the contribution of factory disclosure and
proposes that other companies should be urged to move toward supply chain transparency. |
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