Motivators of fair labor management and the role of top management in the US clothing/footwear industry

Abstract

PurposeThe purpose of this paper is to examine the effects of motivational factors (suppliers and workers are important stakeholders and corporate image concern) on fair labor management (FLM) and the mediating role of top‐management commitment in the relationships.Design/methodology/approachResponses from sourcing managers of US clothing and footwear companies were gathered through a mail survey and analyzed using a mediated regression analysis and a structural equation modeling technique.FindingsBoth the norms in which suppliers and workers are important stakeholders and concern regarding corporate image were significantly related to FLM. The relationship between corporate image concern and FLM was mediated by top‐management commitment and that the relationship between the importance of suppliers and their workers as stakeholders and FLM was partially mediated by top‐management commitment.Practical implicationsResults suggest that changes in the norm, where suppliers and workers are accepted as important stakeholders of the firm, have a direct influence on FLM and that top‐management is requisite in executing FLM orientation and actions in the firms as a response to changing norms and growing pressure in the society regarding labor issues.Originality/valueOrganizational condition for the two commonly cited drivers of FLM to work was discovered.