Tailoring corporate responsibility to suppliers: Managing SA8000 in Indian garment manufacturing

Abstract

As multinational clothing corporations are increasingly pressured to improve severe working conditions at the supplier level, the suppliers in turn are facing an increasing load of requirements in addition to short lead times and competitive prices. Adhering to demands of a labour standard without additional support is thus a daunting task for suppliers. This paper explores local-level management motives for implementation of SA8000 in Indian garment manufacturing. The impacts on business practices, in terms of obstacles and opportunities, are examined in a comparative case analysis, which demonstrates that suppliers need higher prices or long-term contracts to economically motivate implementation. However, a higher legal and social compliance may lead to business opportunities, such as decreased labour turnover and increased orders.