Consisting of networked organizations that span both developed and developing countries, is the athletic shoe industry on the cutting edge of globalization. An important dimension of corporate responsibility is setting and maintaining labor standards for employees of contractors in countries where workers have little or no legal protection against exploitation. This article examines how adidas, the industry’s No. 2 firm, has a code of labor practice used to regulate the labor standards of the major ma … Read more »

Consisting of networked organizations that span both developed and developing countries, is the athletic shoe industry on the cutting edge of globalization. An important dimension of corporate responsibility is setting and maintaining labor standards for employees of contractors in countries where workers have little or no legal protection against exploitation. This article examines how adidas, the industry’s No. 2 firm, has a code of labor practice used to regulate the labor standards of the major suppliers manufacture. A comparative analysis of a matched sample of two contractors in China shows that, although the code requirements were met in both cases, relationships with adidas not only different, but also made a difference. Compared with compliance-type relationships promote collaborative global company-contractor bonds higher job performance and better employment relations in contractor factories.
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from
Stephen J. Frenkel,
Duncan Scott
Source: California Management Review
23 pages.
Release Date: 1 October 2002. Prod #: CMR240-PDF-ENG
Compliance, Collaboration and Codes of Labor Practice: The Adidas Connection HBR case solution

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