Research progress on working conditions in supply chains: a comprehensive literature review and future research propositions

Abstract

PurposeThe International Labour Organization (ILO) has emphasized advancing decent employment in global supply chains. Supply chains (SC) are responsible for the growth of any economy and are positively correlated with job creation. However, studies show that decent working conditions are becoming a major concern. Hence, this study is a modest attempt to examine the shortcomings that result in a lack of decent working conditions in global SCs' and further discuss what kind of guidelines, programs, policies, initiatives or principles are necessary to stimulate decent jobs and/or make it easier to enhance decent working conditions in SC.Design/methodology/approachThe present paper first applied the systematic literature review and second used the TCM (Theory-Context-Methods), which is a framework-based review, further reporting the analysis of 59 journal research articles/papers listed in the Scopus database.FindingsThe most commonly used theories in the selected studies are institutional theory. As per these theories, governance, rules and regulations play a crucial role in stopping forced labour, child labour practices and social injustice among workers. The findings of this study comply with SDG eight, which states the significance of decent working conditions. Further, the topic modeling reveals four themes: (1) Nature of working conditions (2) Corporate legitimacy (3) Corporate governance mechanisms and (4) Corporate social responsibility, sustainability and ethics in firms. Lastly, we proposed a research framework that shows all the leading factors that influence working conditions in the supply chain.Practical implicationsManagers must focus on integrating decent working conditions in SC activities in their respective organizations and factories. Managers must realize and shoulder this responsibility with other top officials in the organization that improving the SC working conditions is the need of the hour. Consultation with Sustainable Development Goal (SDG) five (gender equality) (emphasize gender equality); and SDG eight (decent work and economic growth) (promote sustainable economic growth) is also recommended for managers. Lastly, managers need to develop suitable strategies keeping in mind the interplay between the leading factors (such as top management support, organizational culture, SA 8000 certification, occupational health and safety, stop forced labour and child labour practices, ethics training, enforce modern slavery act, global compliance regimes, buyer-supplier joint auditing, social responsible sourcing, stoppage of unauthorized sub-contracting, maintain SC transparency and CSR disclosure).Originality/valueUsing systematic literature review and TCM approach has provided some good takeaway points for managers. The study provides a valuable framework and fourteen research propositions which can be tested in the future.