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Dilemmas of Corporate Responsibility in a Globalized World: Empirical Evidences from Global Football Industry

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Abstract

During the last few decades, CSR initiatives have widely proliferated in response to global campaigns against poor working conditions in global production networks. In order to maintain their corporate image and avoid negative publicity, private governance has arisen as a response by global buyers. Consequently, plethora of codes of labour standard are introduced by retailers and brand-name firms, which have led to the associated growth of a multibillion social compliance industry involving social auditing and workplace monitoring. Based on empirical data gathered from global football industry, in this chapter we tried to illustrate the limits of top-down CSR approaches as a means of improving working conditions in developing countries like Pakistan. We argue here that effective CSR response requires bottom-up approaches and deeper investigation of broader institutional context that frames the governance of global sourcing from developing countries. Based on analysis of qualitative data, we conclude that currently top-down CSR responses and monitoring mechanisms are facade to avert criticism. We emphasize that in order to make CSR intervention effective and avoid unintended harmful consequences, unheard voices of weaker stakeholders, particularly informal homeworkers in developing countries, should be incorporated in existing frameworks. Admittedly, this is an uphill task in highly dynamic, neoliberal, capitalist global economy, which is marked with unequal power relations between capital and labour.

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Notes

  1. 1.

    Theoretical background is outlined in previous chapter in detail.

  2. 2.

    Reasoning on unintended consequences goes back to Adam Smith, whose metaphor of the invisible hand is linked to working principles of unintended consequences. Later, Karl Marx and Max Weber also referred to those ideas but Robert Merton (1936) was an author who explicitly addressed the “unanticipated consequences of purposive social action” (Merton, 1936) by introducing a systematic discussion.

  3. 3.

    The “Monitorable Stitching Centres”—declared as such by the ILO-IPEC and later by IMAC—are thus mostly modest abodes of the villagers, dingy shops or private sheds located in rural areas. Outside the shops or sheds, one can see a small sign indicating simply: Stitching Centre. Common village houses turned into centres generally do not have a signboard. Inside these “centres”, the IMAC certificate in English and the manufacturer notices in Urdu are found glued to the walls.

  4. 4.

    In 2007, the IMAC 12-member field team was monitoring more than 2500 football stitching centres for 87 manufacturers. The ILO-IPEC monitoring entailed random physical visits of the centre to ascertain child labour, if any, and filling out a form with basic facts about the centre (i.e. number of workers, amount of work done, wages paid) (PILER, 2009: 23).

  5. 5.

    A hand-stitcher generally sews three to four footballs a day and earns Rs 80–120 per football, that is, Rs 300–450 per day. The income of a worker who manages to work the entire month can be in the range of just Rs 8000 to 13,000 per month. On the contrary, a construction worker can earn Rs 14,000–15,000 and a mason Rs. 25,000–30,000 per month. Football hand-stitchers are among the country’s lowest-paid workers. In 2009, Sialkot’s full-time home stitchers were paid by piece rate at around PKR20–30 per ball. They work on average (when orders are sufficient) six to eight hours a day and only make about PKR100–125 (< US$1.50).

  6. 6.

    For detailed discussion, see Chap. 3.

  7. 7.

    Nike, a leading brand in football production, cancelled its order of hand-stitched balls to its contracting manufacturer, Saga Sports Private Limited, on the grounds that it violated labour standards and employed child labour. This alone resulted in loss of jobs and income for 7637 people employed by Saga, including 5257 piece rate workers, residing in more than 400 rural settlements in surrounding areas of Sialkot (PILER, 2009).

  8. 8.

    An ILO estimate placing the number of children at approximately 15,000 (Khan et al., 2007).

  9. 9.

    An ethical dilemma is a conflict between at least two ethical principles, both of which could lead to an equally good or an equally bad outcome. In such a situation, obeying one principle leads to transgressing another, whereas both principles seem equally valid.

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Naz, F., Bögenhold, D. (2020). Dilemmas of Corporate Responsibility in a Globalized World: Empirical Evidences from Global Football Industry. In: Unheard Voices. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-54363-1_5

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  • DOI: https://doi.org/10.1007/978-3-030-54363-1_5

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