Code of ethics violations in informal female employment under multinational corporations

Purpose Informal female workers in the global value chain are vulnerable to economic and social inequalities. This qualitative study explores the lived experiences of female factory employees in Pakistan’s soccer industry, employed by renowned multinational corporations (MNCs), to identify key factors contributing to gender inequality that need to be addressed. Design/methodology/approach We conducted 38 interviews with informal female employees, supervisors and managers, along with observations, in one of the largest soccer ball factories subcontracted by MNCs in Sialkot, Pakistan. Additionally, we analyzed violations of codes of ethical practice (as secondary data sources) in these factories to better understand the inequalities experienced by informal female employees. These interviews aimed to unearth the root causes of the gender inequalities they face both inside the workplace and in society. Findings We extend the earlier conceptual work of Amis et al. (2020), which highlights organizational practices (e.g. hiring, promotion, compensation) that reproduce inequality, by identifying the specific nature of these practices. These include informal practices such as verbal hiring and firing, gender inequities in salary, benefits and promotions at factory, disrespect and mistreatment in factories and societal female bias against women working outside the home—all of which contribute to the reproduction of gender inequality faced by informal female employees employed outside their homes. Research limitations/implications This study contributes to the literature on inequality and organizational justice (OJ) in management by developing a conceptual framework that highlights the role of MNCs as key drivers of equitable employment practices. It aims to promote greater gender equality within MNC-operated and subcontracted factories in developing countries, particularly in Pakistan, by addressing systemic barriers and fostering inclusive organizational practices. Practical implications We offer a practical framework for MNCs to address gender inequality in subcontracted factories in the Global South, grounded in universal ethical principles and OJ. Originality/value Grounded in universal ethical principles and Amartya Sen’s concept of justice, this study employs a rarely applied ethical and justice lens to examine the lived experiences of informal female employees in large factories subcontracted by MNCs in Pakistan, a developing country. By uncovering and analyzing employment practices that perpetuate gender inequality, the research offers a novel perspective on how MNCs can address these inequities and improve conditions for informal female workers under their operations, in alignment with universal ethical and justice-based principles.