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Transparency of Global Apparel Supply Chains: Quantitative Analysis of Corporate Disclosures

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Corporate Social Responsibility and Environmental Management

Published online on

Abstract

As the globalization of the apparel industry has increased, many issues have emerged regarding the management of supply chains overseas. Significantly low contract prices, which are offered in an effort to remain competitive in global trade, often lead to labor exploitation. The California Transparency in Supply Chains Act went into effect in 2012 to eradicate slavery and human trafficking from supply chains of manufacturing and retail companies. The purpose of this study was to investigate the current status of implementation of this Act in the apparel industry. A quantitative content analysis was conducted to analyze the website disclosures of 204 US‐based apparel retail and manufacturing companies, focusing on the presence, type, length, accessibility, and content of their disclosures. The findings of this study provide insights for manufacturers, retailers, and marketers regarding how they can publicize their socially responsible efforts, particularly regarding slavery and human trafficking issues in their supply chains. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment.