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How do unauthorised supplier disclosures challenge and reshape CSR narratives in tech and retail industries?: The cases of Inditex and Apple.
Malmö University, Faculty of Culture and Society (KS), Department of Global Political Studies (GPS).
2025 (English)Independent thesis Basic level (degree of Bachelor of Fine Arts), 13 HE creditsStudent thesis [Artistic work]
Abstract [en]

This thesis investigates the role of unauthorized supplier disclosures in shaping and transforming the Corporate Social Responsibility (CSR) narratives of multinational corporations in the retail and technology sectors. The research focuses on the comparative cases of Inditex, a leading global fashion retailer, and Apple Inc., a major consumer technology company. These corporations were selected due to their extensive global supply chains, significant market influence, and documented histories of supplier-related controversies. The study explores how involuntary revelations of supplier misconduct, such as leaked information, investigative media reports, whistleblower testimonies, and NGO documentation, affect corporate communication strategies, stakeholder engagement, and human rights due diligence practices. Unlike voluntary CSR disclosures, which are typically selective, reputationally oriented, and controlled by the corporation, unauthorized disclosures introduce information that is outside of corporate control and compel companies to address issues that may undermine their public claims of ethical conduct and sustainability.The research adopts a qualitative comparative case study methodology, combining in-depth analysis of corporate sustainability reports, NGO publications, media investigations, and policy documents spanning the period from 2014 to 2024. This methodological approach enables a nuanced understanding of the dynamics between corporate self-presentation, external accountability pressures, and operational practices. By investigating both pre- and post-disclosure corporate)5behaviours, the study examines how organizations respond to reputational risk and navigate the complex balance between maintaining legitimacy, meeting stakeholder expectations, and implementing human rights protections in multi-tiered supply chains.The findings of this study reveal that unauthorized supplier disclosures have a significant and multifaceted impact on corporate CSR narratives. Initially, these disclosures often expose discrepancies between corporate claims and actual operational realities, highlighting systemic issues such as labor rights violations, unsafe working conditions, excessive working hours, wage theft, child labor, and suppression of union activities. For example, media investigations and NGO reports have documented child labor in cobalt mines supplying Apple’s battery production, directly challenging Apple’s stated commitment to ethical sourcing. Similarly, wage theft and poor working conditions identified in factories supplying Inditex undermine the company’s claims of enforcing living wages and labor standards. These findings illustrate those unauthorized disclosures function as critical accountability mechanisms, revealing the limits of voluntary CSR frameworks and exposing vulnerabilities in corporate oversight of global supply chains.In response to these disclosures, both Inditex and Apple have taken multiple measures to realign their CSR narratives with stakeholder expectations and operational realities. These measures include greater transparency in reporting, public disclosure of supplier lists, enhanced auditing processes, and the introduction of grievance mechanisms for workers. Corporations have also engaged with multi-stakeholder initiatives and collaborated with NGOs to address labor and human rights issues systematically. These actions demonstrate a shift from purely promotional CSR communication to more reflexive, accountable, and dialogic corporate narratives. By acknowledging the complexity of supply chains and reporting on both successes and failures, corporations attempt to rebuild trust with stakeholders and demonstrate their commitment to responsible business conduct.The study further highlights the critical role of various stakeholders in influencing corporate behaviour following unauthorized disclosures. NGOs, labor unions, journalists, and consumers serve as catalysts for corporate accountability, while institutional investors increasingly incorporate Environmental, Social, and Governance (ESG) criteria into decision-making processes. This combination of social, regulatory, and financial pressure reinforces the transformative impact of unauthorized disclosures and encourages corporations to adopt more comprehensive human rights due diligence practices. Regulatory oversight, particularly in countries where supply chain operations are concentrated, also contributes to external pressure, making corporate compliance not only an ethical imperative but a practical necessity for maintaining market legitimacy and avoiding reputational harm.Theoretically, this thesis contributes to the literature on legitimacy theory and stakeholder theory by demonstrating that CSR is not a fixed or solely corporate-driven discourse, but a contested and dynamic process influenced by external actors. Unauthorized disclosures disrupt corporate storytelling and compel organizations to reconsider the credibility of their narratives and the effectiveness of their internal governance mechanisms. The comparative analysis between the retail and technology sectors provides insights into how industry-specific characteristics, such as supply chain complexity, subcontracting practices, and consumer expectations, shape corporate responses to disclosure events.)6Practically, the findings offer guidance for policymakers, corporations, and civil society organizations. Policymakers can use the evidence to evaluate the limitations of voluntary CSR frameworks and support the development of binding due diligence legislation, such as the EU Corporate Sustainability Due Diligence Directive. Corporations can leverage the insights to design more proactive transparency strategies, improve stakeholder engagement, and strengthen supply chain oversight. NGOs and advocacy groups can better understand how to strategically use disclosure information to pressure corporations into aligning operations with internationally recognized human rights standards.In conclusion, this thesis demonstrates that unauthorized supplier disclosures are not simply reputational crises but also critical instruments for advancing corporate accountability and human rights protections. These disclosures expose gaps between corporate rhetoric and operational reality, catalyse governance reforms, and foster a more transparent and accountable approach to CSR. By examining the cases of Inditex and Apple, this study provides empirical evidence of the disruptive and corrective potential of unauthorized disclosures and highlights their significance as mechanisms for ensuring responsible business conduct in global supply chains. The research underscores that CSR, while a valuable tool for promoting ethical practices, requires continuous external monitoring and stakeholder engagement to achieve substantive human rights outcomes.

Place, publisher, year, edition, pages
2025.
National Category
Humanities and the Arts
Identifiers
URN: urn:nbn:se:mau:diva-79245OAI: oai:DiVA.org:mau-79245DiVA, id: diva2:1994806
Educational program
KS GPS Human Rights
Examiners
Available from: 2025-09-10 Created: 2025-09-03 Last updated: 2025-09-10Bibliographically approved

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