Legitimacy Threats and Stakeholder Concerns Within Supply Chains

Abstract

Legitimacy threatening incidents (such as the use of child labour, human trafficking, factory collapses and fires, and poor health and safety standards) within MNCs’ supply chains operating in developing nations have drawn global criticism. The purpose of this chapter is to provide an overview of social incidents within supply chains which can threaten legitimacy, and which corporate managers and auditors must not overlook. In particular, some specific examples of major social incidents within supply chains, which have created significant concerns for MNCs as well as the global community, will be discussed.