Multinationality and corporate ethics: codes of conduct in the sporting-goods industry

The international operations of firms have substantial impact on the formulation and implementation of business ethical principles such as codes of conduct. The international sporting goods industry has been a pioneer in setting up codes and thus provides much relevant experience. Different sourcing strategies, degrees of multinationality and national backgrounds affect the contents of codes. Moreover, international (non-governmental) organizations prove equally effective in triggering sophisticated codes. The article analyses the evolution of codes of conduct in the sporting goods industry. It examines monitoring and compliance mechanisms included in the codes adopted and proposed by companies, societal organizations, business support groups and international organizations. Six companies (Nike, Reebok, Puma, Mizuno, Asics, Adidas and Mizuno, of which only the first four have a code), three business support groups (AAMA, AFA, AIP), three social interest groups (CEPAA, CCC, AHRC) and three international organisations (ILO, WFSGI, FIFA) are analysed. To obtain insight into the relative position of the industry, the codes applying specifically to this sector are compared to a reference set of 132 codes. The compliance likelihood and the stringency of a corporate code still largely depend on the interaction of various stakeholders in its formulation and implementation.