The Apparel Industry Response to “Sweatshop” Concerns: A Review and Analysis of Codes of Conduct

• Author: Ronald J. Adams,Margaret A. Emmelhainz
• Published date: 01 June 1999
• Date: 01 June 1999
• DOI: http://doi.org/10.1111/j.1745-493X.1999.tb00062.x

The apparel industry has faced increased scrutiny

in recent years due to governmental and consumer

concern over the use of “sweatshop” labor in the

production of goods. This is particularly true for

those firms that use foreign suppliers. As a result,

purchasing managers for U.S. apparel manufacturers

and retailers have found themselves

faced with the challenge of ensuring

that their merchandise is produced

under humane, equitable conditions, even though

suppliers may be located in distant markets outside

of the corporate umbrella. This study reviews industry

responses to this challenge. Industry initiatives, such

as the Apparel Industry Partnership Agreement and

the National Retail Federation Statement of princi-

ples on Supplier Legal Compliance, are discussed,

and the content of codes of conduct from major

manufacturers and retailers are analyzed. The review

indicates that while many firms have codes of con-

duct, there is only limited uniformity across codes,

the codes lack substantial detail, and the codes are

particularly lax in the area of monitoring and

enforcement.

INTRODUCTION

The existence of “sweatshop” working conditions

has received considerable attention from both the U.S.

government and the press in recent years. Particular

emphasis has been placed on the production of apparel,

much of which is done by foreign suppliers for U.S.

manufacturers and retailers. Numerous efforts have been

initiated by the U.S. apparel industry as well as by gov-

ernment agencies to curb labor abuses and to ensure

reasonable working conditions. One such effort has

been the development and implementation of codes of

conduct that specifically address working conditions in

production facilities operated by international suppliers.

This study reviews current industry and government

initiatives and positions on working conditions and

analyzes codes of conduct of major U.S. manufacturers

and retailers for compliance with those positions. The

need for supplier selection criteria and monitoring poli-

cies specifically designed for international suppliers is

presented. Guidelines for the development and imple-

mentation of such policies and codes of conduct are

suggested.

CHALLENGES OF INTERNATIONAL SOURCING

As U.S. firms have faced mounting global competition,

they have relied increasingly on international sourcing

as a way to sustain competitiveness (Monczka and Trent

1991). Although the most common reason identified for

international sourcing is to obtain lower costs, other

reasons include production sharing where a firm’s pro-

duction activities are shifted to the region of the world

where they will add the most value to the firm’s prod-

ucts, access to higher quality goods, access to worldwide

technology, increased number and availability of sup-

pliers, and a desire to meet countertrade obligation

(Monczka and Giunipero 1984; Fawcett 1993; Birou

and Fawcett 1993).

International sourcing offers potential benefits to

U.S.-based firms, but also poses additional challenges

not typically associated with domestic sources. Birou

and Fawcett (1993) identified diverse business practices,

cultural and language differences, and locating qualified

sources as key challenges in the international arena.

51

The Journal of Supply Chain Management | Summer 1999

The Apparel Industry Response to

“Sweatshop” Concerns: A Review

and Analysis of Codes of Conduct

Margaret A. Emmelhainz

is an Associate Professor of Marketing at the University of North

Florida. She earned her Ph.D. degree from The Ohio State University.

Dr. Emmelhainz’s research interests include the use of information

in purchasing and marketing, vendor selection and analysis, and

supply chain management.

Ronald J. Adams

is a Professor of Marketing at the University of North Florida. He

earned his Ph.D. degree from the University of Georgia. Dr. Adams’

research interests include consumer dispute analysis and product

liability issues.

The Journal of Supply Chain

Management: A Global

Review of Purchasing

and Supply Copyright ©

August 1999, by the National

Association of Purchasing

Management, Inc.

AUTHORS

SUMMARY