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Rana Plaza collapse aftermath: Are CSR compliance and auditing pressures effective?

Sinkovics, Noemi; Hoque, Samia Ferdous; Sinkovics, Rudolf R.

Authors

Noemi Sinkovics

Samia Ferdous Hoque



Abstract

Purpose: The paper sets out to investigate the intended and unintended consequences of compliance and auditing pressures in the Bangladeshi garment industry. To explore this issue we draw on three medium sized suppliers. The institutional changes that followed the Rana Plaza accident in April 2013 make Bangladesh in general and the garment industry in particular an interesting and suitable research setting for standards compliance. // Design: The study adopts a multiple case study approach. Face-to-face interviews have been conducted with the owners of three Bangladeshi garment manufacturing firms and several workers. Additionally, organisational documents and local newspaper articles had been collected wherever possible. // Findings: The results indicate that the pressure for compliance has led the case companies to prioritise the implementation of measurable standards over the socially grounded needs and priorities of workers. As a consequence certain initiatives instead of adding new social value in fact destroyed previously existing social value. Furthermore, the pressure for compliance created the necessity to find ways to cover the sizable cost of compliance. This prompted firms to pursue process upgrading through technological advancements and increased work pressures on the labour force. These initiatives led to an increased power imbalance and the exclusion of unskilled workers from the job market.// Originality: The paper contributes to the understanding of the human rights implications of compliance and auditing pressures and initiatives. Furthermore, in order to further enrich existing knowledge in the critical accounting literature, the study draws on insights from the global value chains (GVC) and international business (IB) literatures.

Citation

Sinkovics, N., Hoque, S. F., & Sinkovics, R. R. (2016). Rana Plaza collapse aftermath: Are CSR compliance and auditing pressures effective?. Accounting, Auditing and Accountability Journal, 29(4), 617-649. https://doi.org/10.1108/AAAJ-07-2015-2141

Journal Article Type Article
Online Publication Date May 16, 2016
Publication Date 2016
Deposit Date Oct 2, 2024
Journal Accounting, Auditing and Accountability Journal
Print ISSN 0951-3574
Publisher Emerald
Peer Reviewed Peer Reviewed
Volume 29
Issue 4
Pages 617-649
DOI https://doi.org/10.1108/AAAJ-07-2015-2141
Keywords CSR compliance, human rights, social value, Global value chain, social upgrading
Public URL https://durham-repository.worktribe.com/output/2773126
Publisher URL http://dx.doi.org/10.1108/AAAJ-07-2015-2141