Protecting Multinational Enterprise (MNE) Employees from a Consumer's Perspective: The Role of "Social" Reputation

Abstract

Virtually instantaneous information dissemination has narrowed the once existing knowledge gap between multinational corporations and customers (i.e. Rana Plaza collapse, 2013). Consumers begin to play a significant role in the support of workers. Their increasing social consciousness has evident economic implications. MNEs have attempted to counteract the loss of social prestige by primarily establishing (and imposing on their suppliers) codes of conduct and ethics that stipulate a minimum level for decent work conditions. This article intends to assess, from many perspectives, the social reputation and social sustainability that have recently drawn the attention of stakeholders (MNEs, consumers, government and non-government organizations, unions). These "new" types of social initiatives (code of behaviour, social ranking, consumer campaigns, and boycotting) are informative and could aid in the dissemination of ILO labour standards. Clearly, they can only provide supplementary assistance to workers who are struggling in the traditional struggle between Work and Capital. The inclination to evaluate the social sensitivity of MNEs using a single criterion that applies to both "developing" and "developed" nations risks fostering a "race to the bottom" mentality.