Globalization confronts decision-makers in connection with global conditions in identifying
labour standards that can serve as guidelines for corporations producing or outsourcing outside of their
home country. The Article shows that in a globalized business world the concept of a conventional
corporate ethic system to put all energy into the development of codes of conduct, and ethical audits and
sustainability reporting falls short. This applies to industries like the Tamil Nadu textile industry, as
there is no clarity with regard to the causal factors and the key players in the supply chain of such a
complex social system. The Integrative Social Contract Theory (ISCT) allows understanding the problem
of Supply-Chain Responsibilities as a contractual relationship that denotes concrete moral responsibilities.