ABSTRACT

This chapter aims to review the existing literature to identify the important factors for codes of conduct that have high compliance and diffusion characteristics throughout the supply chain. It attempts to develop a road map for corporate compliance programmes with a high implication and diffusion potential. The chapter provides a useful benchmark tool for various industries thinking about standardizing compliance programmes, and presents a helpful insight to understand the spill-over of sustainable practices among diverse organizations in different industries. The relationship between company and supplier has a critical role in increasing the sustainability performance by ensuring the full compliance of suppliers to codes of conduct. In practice, companies also monitor the effectiveness of their compliance programmes by following the diffusion of sustainability across their supply chain. The company states that it commits to a transparent reporting process and dedicates its resources to monitor and improve its suppliers' sustainability performance.