ABSTRACT
Supply chain management (SCM) expands the relationships between business partners beyond mere market relationships. This chapter presents a literature review on SCM and codes of conduct, and in particular SA8000. It aims to show how SA8000 can reduce information asymmetry and solve the principalagent problem, thus improving transparency and reducing transaction costs. SA8000 is a voluntary accountability standard developed in 1997 by Social Accountability International (SAI), an international non-profit human rights organization, and mainly based on the principles of core International Labor Organization (ILO) conventions, the United Nations (UN) Convention on the Rights of the Child and the Universal Declaration of Human Rights. The principles of SA8000 tend to create a supply chain effect, being used as ATOol to manage suppliers. Organizations may consider the benefits of SA8000 certification in terms of improved public perception of their activities.
