Beyond Labour Regulations – The Achievements and Limitations of Social Compliance Audit in Delhi Garment Factories

Abstract

Corporate Social Responsibility (CSR) and Social Compliance Audit (SCA) have today emerged as buzzwords familiar to all business organizations. SCA can be understood as private and voluntary rules adopted by companies for improving working conditions in transnational production chain. SCA can be seen as a specific type of CSR because it organizes corporate commitment to ethical standards in the forms of rules. The common objective of CSR and SCA is to ensure that business takes responsibility and accountability for its actions. However, the accountability cannot be at the cost of business profitability of the organization. The present state of affairs highlights the twin process of responsibility and profitability. In such a situation it is important to understand where does one fit in the process of SCA? In practicing SCA, are business organizations really concerned with social responsibility and accountability or are there external pressures to follow international standards and appease the consumers? This article by critically examining the practice of SCA argues that it has failed to fulfil the norms of responsibility and accountability. As a process of regulation working condition it should have benefitted the labours, on the contrary, it has failed to re-organize workers in developing countries.