A set of desirable labour standards or employment practices that are adopted by corporations to regulate management practice in supplier companies, particularly those based in developing countries. Codes have been adopted increasingly by large companies in response to pressures from trade unions, campaigners, and consumers and heightened public awareness of the question of international labour standards. The main components of codes include prohibitions on child labour, forced labour, discrimination on the grounds of sex, religion, and race, and reliance on inhumane disciplinary sanctions. They also typically include clauses on health and safety, fair wages, and working time, and in some instances guarantee freedom of association and collective bargaining. Codes are often based on the conventions of the International Labour Organization and are enforced through systems of monitoring of management practice in supplier firms. [See also corporate social responsibility and triple bottom-line.]
Subjects: Human Resource Management.