Corporate Social Responsibility: Creating And Implementing Supplier Codes Of Conduct

Economic globalization and the increased scrutiny of transnational and multinational corporations over the past few decades has given rise to the present climate of opinion, with its widespread aversion to the "soulless corporation". Today, the responsibility of business is arguably not simply to increase profits but to achieve profit-maximization through corporate social responsibility and the advantages that come with being regarded as an "ethical" brand. Now, more than ever, corporations are looking at how they can modify, control, report, police and sanction behaviour that may jeopardize their status as an ethical brand with customers and shareholders. Accordingly, many corporations have taken to the practice of developing and implementing supplier codes of conduct that set minimum performance standards for their suppliers both at home and abroad. This paper summarizes the key components of supplier codes of conduct and analyzes the legal risks associated with the