The Value of “Social” Reputation: The Protection of MNE Workers from the Consumer’s Perspective

Abstract

Abstract The virtually immediate information propagation has reduced the gap of knowledge once existing between MNEs and customers (i.e. Rana Plaza collapse, 2013). Consumers begin playing an important role in supporting workers. Their growing social awareness has clear economic consequences. MNEs have tried to react to the loss of social reputation, mainly adopting (and imposing to their suppliers) codes of conduct and ethics providing a minimum standard for decent work standards. This article aims to analyze the social reputation and social sustainability that have recently attracted stakeholders’ interest, from different points of view (MNEs, consumers, government and non-government organizations, unions). Those “new” forms of social initiatives (code of conduct, social ranking, consumers campaign, boycotting) are informative and could help to spread ILO labour standards. Clearly, they can represent only an additional support for workers who are struggling in the typical conflict between Work and Capital. The tendency to use a single parameter for assessing the social sensitivity of the MNEs, valid both for the countries “in development” and for those “already developed” risks to lead to a “race to the bottom” trend.