New Approaches adopted by Multinational Companies in the implementation and preservation of Labor Rights across Supply Chain

Abstract

The core of this thesis is based on the different approaches adopted by Multinational Enterprises on the matter of labor rights protection. This area is attracting numerous discussions due to the increasing importance given to global challenges by consumers, investors and governments. Since companies choice is strongly influenced by the perception of these actors, they are adopting new methodologies to guarantee improved best practices, promoting transparency across their supply chain. This is having a positive impact that is reflected on the higher level of trust and appreciation of the stakeholders. The topic of the thesis was addressed through a qualitative approach with a focus on research papers and authoritative sources produced over the past decades. This allowed me to consider the main perspectives and approaches of CSR adopetd by companies in the application of solutions to limit labor abuses within the supply chain. The structure of this thesis is based on a three-pronged approach.

The first chapter focuses on the globalization effects on juridical systems which have induced to a common practice named law shopping which is widely welcomed by Multinational Companies, constantly looking for the most convenient national legislations in matter of labour rights. Many international institutions like ILO, UN and national institutions have tried to prevent this mechanism through the implementation of regulations and soft law acts to regulate the MNCs’ behavior. In line with these policies, a great contribute is also provided by the same corporations which are introducing codes of conducts aiming to comply with the international, regional and national normative.

In the second chapter, I focus on the new ways of doing business introduced by many companies that are integrating the Total Societal Impact within their core business to guarantee a good impact to the society through their activities. Some examples analyzed show the positive correlation between “doing good” and higher margins and valuation in several industries with a further section dedicated to the increasing interests of investors towards ESG investing companies. In addition, I analyzed the beneficial effects of partnership among stakeholders in the identification and implementation of best

practices to guarantee labor rights. This part is followed by a paragraph dedicated to the FairTrade initiative and to the importance of transparency within the supply chain. In the final section of the chapter, two companies with outstanding results in the social sustainability field are presented, providing an overview of the factors and strategies contributing to the labour rights implementation.

In the third chapter, the main focus is on innovative perspectives proposed by some companies which based their CSR approach on a higher level of transparency and visibility of their processes across the supply chain. Finally, several interviews were conducted among practitioners that provided multiple interesting perspectives on their personal vision on labor rights within the supply chain. In conclusion, I present a section containing my observation and considerations on the matter.