Controlling Social Sustainability in the Apparel Industry : A qualitative study of how Scandinavian apparel companies control social sustainability in their supplier networks

Abstract: The apparel industry is one of the first industries being criticized and publicly shamed for not taking enough social responsibility for the workers in their supply chain. Today, most of the apparel production takes place in developing countries such as Bangladesh, China, Cambodia and Vietnam. Social issues in the apparel supply chain are often related to health and safety, minimum wages, overtime, child labor and the lack of freedom of association. Controlling these social issues is difficult since the apparel companies and their suppliers are geographically and culturally separated. Furthermore, the production of apparel takes place in countries with weaker legal frameworks not being strict enough to protect the workers' rights. Hence, the apparel companies face major challenges in controlling the fulfillment of international standards from the International Labor Organization and United Nations. There is a lack of research on the topic related to social sustainability practices in the supply chain and researchers state that it requires more attention, by focusing on how companies' code of conducts (CoC) and international standards can be used more effectively in the context of sourcing and social responsibility. To address the research gap, the purpose of the study is to understand how brand-owning apparel companies in Scandinavia control social sustainability in their supplier networks. Based on those findings, we will compare the relation between the empirical data and what theories and international standards illustrate as critical aspects for controlling social sustainability. In the study, we have conducted semi-structured interviews with seven Scandinavian apparel companies. Since social sustainability can be a sensitive topic for companies to share information on, we have also conducted an interview with Nina Wertholz, working at the non-profit organization Fair Action, providing a different perspective. By using a thematic analysis, two main themes have been identified that together answer the research question, namely control measures and factors affecting control. Firstly, control measures relate to what the companies' control consists of and our findings demonstrate risk assessments, code of conduct, audits, and measurement as the main tools. Still, we conclude that these control measures are not sufficient to control social sustainability in the supplier network. Secondly, factors affecting control can explain the outcome of controlling social sustainability. Findings advocate that a good collaboration, providing support and a shared interest can facilitate a higher degree of control. Additionally, our findings shows that companies with smaller order quantities have less influence and control over their supplier's social sustainability practices. We also infer that the number of suppliers and which countries the companies choose to source from will affect the obtained level of control. Furthermore, decisions regarding the supplier base and the sourcing country are active choices made by the companies. Lastly, we conclude that the companies' purchasing behavior can affect the level of control related to wages, incomes, and overtime for the workers in the apparel supply chain.