Master thesis in Sustainable Development 224 Examensarbete i Hållbar utveckling

Ethical Sourcing in Small and Medium-Sized Fashion Enterprises – a Case Study Elisa

Wagner

implementation of codes of conduct and the development of CSR (Corporate social

responsibility) strategies in supply chains

This figure illustrates the theoretical framework explained in this chapter. Ethical sourcing

can be achieved by integrating the concept of CSR along the supply chain.
3.4 Ethical sourcing In this section, the concept of ethical sourcing that links the concept of

CSR with the concept of supply chains (see previous sections), is introduced. Moreover, the

notion of ethical sourcing codes of conducts, a tool that helps realizing ethical sourcing, are

presented. Ethical sourcing is a part of CSR activities of a company (Zentes and Schramm-

Klein, 2009, p. 98). It includes meeting ethical norms in the process of global sourcing while

taking laws in the respective countries and economic criteria into account (ibid.). An

important aspect of ethical sourcing concentrates on good labour conditions and fair working

hours, especially in companies sourcing in developing countries (ibid.). When it comes to

establishing ethical sourcing, standards across corporate boundaries play an important role

(ibid.). These standards aim at developing a wide accepted understanding of ethical sourcing

that should serve as a basis for the (international) implementation of ethical sourcing (ibid.).

Moreover, they play an important role when it comes to selection of suppliers and the

documentation of ethical sourcing (ibid.). There exist numerous sector-specific standards

from non-profit organisations focusing on ethical standards in the textile industry including
WRAP (Worldwide Responsible Apparel Production) and the Fair Wear Foundation (see

section 5.3.4).

3.5.3 Enforcement and monitoring Along with these codes, firms have developed managerial

systems for labour monitoring, labour auditing or social compliance (Mamic, 2004, p. 10;

Preuss, 2009; Shaw and Hale, 2009). Moreover, new kinds of intermediaries besides unions

and work councils apply pressure, offer services and provide areas for coordinated action

when it comes to compliance with ethical sourcing codes of conduct (Mamic, 2004, p. 10).

These intermediaries include, among other, for-profit auditing firms or multi-stakeholder

organisations (ibid., Shaw and Hale, 2009)

Article Social Sustainability in Apparel Supply Chains—The Role of the Sourcing

Intermediary in a Developing Country Deniz Köksal 1,*, Jochen Strähle 1 and Martin Müller

2 1 School of Textiles & Design, Reutlingen University, Alteburgstraße 150, 72762

Reutlingen, Germany; jochen.straehle@reutlingen-university.de 2 Institute of Sustainable

Corporate Management, Ulm University, Helmholtzstraße 18, 89081 Ulm, Germany;

martin.mueller@uni-ulm.de * Correspondence: deniz.koeksal@reutlingen-university.de

Received: 23 February 2018; Accepted: 28 March 2018; Published: 31 March 2018

Marks & Spencer

M&S was one of the first high street brands to publish a set of Global Sourcing
Principles which is a comprehensive set of standards covering every element of
workers’ rights, and working conditions, including pay, overtime, and safety. These
policies are regularly updated, and their suppliers must meet all set standards to
work with them. M&S’s Global Community Program (GCP) brings together many
different ongoing initiatives under one banner, such as their Plan A program which
they have received over 100 awards for including being named the ‘Most Ethical
High Street Clothing Retailer’ by Ethical Consumer Magazine in 2014. Their Plan A
program addresses sustainability by pledging to ensure that suppliers in India, Sri
Lanka and Bangladesh were able to pay their workers a decent living wage by 2015.
Plan A also aims to empower workers in garment supply chains around the world by
improving their lives in profound, lasting ways.

Additionally, M&S has regional offices in key sourcing countries which makes it easy
for local teams to regularly conduct third-party factory audits to ensure that their
global ethical standards are maintained. Rather than writing off any suppliers who
don’t meet their standards, M&S believes that they have an important role to play in
raising standards across the industry, and therefore take a collaborative approach to
the matter. They work closely with their suppliers to improve factory’s working
conditions, fire, and electrical safety and they have a solid corrective action plan in
place if issues arrive. In 2016, M&S took a step towards increased transparency and
responsible sourcing by publishing an interactive map featuring locations of all their
active clothing and food manufacturers.