Labor Malpractice: The Critical Role of Operations

Posted: 4 Sep 2020 Last revised: 15 Dec 2021

See all articles by Wei Kiat Lim

Wei Kiat Lim

affiliation not provided to SSRN

Niyazi Taneri

University of Cambridge - Cambridge Judge Business School

Hsiao-Hui Lee

National Chengchi University (NCCU) - Department of Management Information Systems

Sameer Hasija

INSEAD - Technology and Operations Management

Date Written: September 3, 2020

Abstract

Well-intentioned efforts by governments, non-governmental organizations (NGOs) and companies to eliminate labor exploitation have failed to curb unjust labor practice. The premise of this paper is that labor malpractice is not solely a corporate social responsibility and human resources issue; rather, its incidence can be driven by day-to-day operations. We thus develop and test hypotheses to identify key operational drivers of labor malpractice. Our analysis of a panel of nearly 7,000 controversy records at the firm-year level from 2008 to 2019 reveals that the volatility faced by the focal firm and supply chain spillovers have an impact on labor malpractice. We discuss and demonstrate that the firm has levers at its disposal to address these challenges. Our results show that the operations and supply chain function of the firm needs to be at the center of efforts to reduce labor malpractice.

Keywords: Sustainable Operations, Labor Malpractice, Corporate Social Responsibility

Suggested Citation

Lim, Wei Kiat and Taneri, Niyazi and Lee, Hsiao-Hui and Hasija, Sameer, Labor Malpractice: The Critical Role of Operations (September 3, 2020). INSEAD Working Paper No. 2020/41/TOM, Available at SSRN: https://ssrn.com/abstract=3685767 or http://dx.doi.org/10.2139/ssrn.3685767

Wei Kiat Lim

affiliation not provided to SSRN

Niyazi Taneri (Contact Author)

University of Cambridge - Cambridge Judge Business School ( email )

Trumpington St.
Cambridge, CB21AG
United Kingdom

Hsiao-Hui Lee

National Chengchi University (NCCU) - Department of Management Information Systems ( email )

No. 64, Section 2, Zhǐnán Rd
Wenshan District
Taipei City
Taiwan

Sameer Hasija

INSEAD - Technology and Operations Management ( email )

Boulevard de Constance
77 305 Fontainebleau Cedex
France

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