Exploration of the political roles firms play in society is a flourishing stream within corporate social responsibility (CSR) research. However, few empirical studies have examined multiple levels of political CSR at the same time from a critical perspective. We explore both how the motivations of managers and internal organizational practices affect a company's choice between competing CSR approaches, and how the different CSR programs of corporate and civil society actors compete with each other. We present a qualitative interpretative case study of how a French children's clothing retailer develops CSR practices in response to accusations of poor working conditions and child labor in its supply chain. The company's CSR approach consists of superficial practices, such as supplier audits by a cooperative business-organized nongovernmental organization (NGO) and philanthropic activities, which enable managers to silence more radical alternative models defended by other NGOs, activists, and trade unions. By this approach, the core business model based on exploitative low-cost country sourcing remains intact through self-regulated CSR. Through the case study, we develop a framework of dynamism in competing CSR programs. We discuss the implications of our study for CSR researchers, company managers, and policy makers.
Purpose
The purpose of this paper is to analyze the functioning of the French Law No 2017-399 relating to the duty of vigilance of parent companies and ordering companies, a law defended by labor unions and non-governmental organizations (NGOs) as an answer to the ineffectiveness of corporate social responsibility (CSR) mechanisms of multi-national corporation.
Design/methodology/approach
The authors try to determine to what extent the new mechanisms brought by this law could improve or not the failure of existing CSR mechanisms.
Findings
The authors find out that internal weaknesses of the law, which is based on voluntary CSR instruments and without penalties, internal mechanisms of the French judicial system or external economic factors, might considerably limit the effectiveness of the law.
Originality/value
Even if for the first time, French judges might be asked to evaluate the reasonableness of the CSR practices of firms, one of the paradoxical effects of this law might be to institutionalize soft law mechanisms such as CSR certification or reporting, the proponents of this law precisely wanted to get rid of at the origin.
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