Cultural and legal challenges in
implementing code of conduct in supply
chain management of mobile phone
industries: Sony Ericsson case study
Mohamad Zakaria, Zanda Garanc
ˇ
a and Abdallah Sobeih
Abstract
Purpose – This paper seeks to identify the practical challenges of implementing a code of conduct in
the supply chain management of multinational mobile phone industries from diverse cultural and legal
contexts by analysing critically how a multinational company manages the CSR concept in its supply
chain.
Design/methodology/approach – This study is based on qualitative interviews, analysis of codes of
conduct and the practices of Sony Ericsson as well as of one of its suppliers.
Findings – Codes of conduct should be perceived differently within different contexts. Therefore,
cultural and legal issues have to be considered when formulating and implementing codes of conduct,
and when assessing compliance. The development of codes of conduct in the mobile phone industry is
an ongoing process. Both cultural and legal challenges have to be considered.
Originality/value – Each company should define its own standards and limits of responsibility within the
context of ethical sourcing, while some basic codes of conduct compliance should be forced on the
whole mobile phone industry.
Keywords Corporate social responsibility, Supply chain management, Code of conduct, Compliance,
Monitoring, Multinational companies, Mobile technology
Paper type Research paper
Introduction
A code of conduct is a standardised document that is part of the contract between suppliers
and their clients that forms a legal relationship between the buyer and the supplier. The code
requires that first-tier suppliers comply with the code of conduct and should ask the same of
their suppliers, thus ensuring a secure supply chain.
The content of the code of conduct depends on the organisation. It defines the standards of
responsibility, the applicable stakeholders, implementation, and monitoring mechanisms.
According to Mamic (2004, p.46), the substance of the code must be broad enough to be
applicable to a myriad of different situations and also precise enough to be useful in judging
individual cases. Nowadays experts claim that codes of conduct should be broad and proactive
in content (Mamic, 2004). Codes of conduct usually involve issues related to corporate
governance, the environment, social issues (labour, human rights), ethics, and philanthropy. The
scope, however, depends on the perception of the social responsibility of the company.
Our understanding of corporate social responsibility (CSR) is based on Carroll’s (1999)
definition of CSR. The major development of the CSR concept started at the beginning of the
1950s. Carroll (1999) claims that at that time research related to corporate responsibility
(CR) focused mainly on how business contributed to the growth and development of society.
He states that the social responsibility of businesses encompasses the economic, legal,
DOI 10.1108/17471111211234851 VOL. 8 NO. 2 2012, pp. 227-241, Q Emerald Group Publishing Limited, ISSN 1747-1117
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SOCIAL RESPONSIBILITY JOURNAL
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PAGE 227
Mohamad Zakaria is a
Researcher in the Master’s
Programme in Public
Health, Department of
Clinical Sciences, Lund
University, Malmo
¨
, Sweden.
Zanda Garanc
ˇ
a is a Senior
Learning Specialist with
Electrolux Poland Sp z.o.o.,
Krakow, Poland. Abdallah
Sobeih is a Technical
Adviser in Business
Administration at Lund
University, Lund, Sweden.
This research paper is based
on the authors’ Master’s thesis
research findings within the
Master’s programem
‘‘Managing People, Knowledge
and Change’’ at the School of
Economics and Management,
Lund University. The authors
are very grateful to Dr Sverre
Spoelstra for his invaluable
advice and constructive
criticism upon reading the first
draft of this paper. The
document refers to Sony
Ericsson and its activities as of
2008, when the document was
originally produced.