Transnational Private Regulation in Practice: The Limits of Forest and Labor Standards Certification in Indonesia
AbstractSystems for certifying sustainable resource use and decent labor conditions have become prominent modes of private regulation at the transnational level. But serious questions remain about how these global standards are put into practice in particular places, especially in developing countries. Drawing on fieldwork in Indonesia, this paper examines the growth of certification of sustainable forestry (e.g., through the Forest Stewardship Council) and certification of decent labor conditions in factories (e.g., through Social Accountability International). Based on the controversy that surrounded both sweatshops and deforestation in Indonesia, and the export dependence of both the apparel/footwear and forest products sectors, these would appear to be prime candidates for the application of certification. Yet in both sectors, the growth of multi-stakeholder certification has been limited. Furthermore, private regulation in Indonesia has taken somewhat divergent paths in these two sectors, which shapes certifications significance at the point of production. The paper examines how the socio-legal context of certification, the character of supply chain relationships, and possible differences in the politics of labor and the environment can help to explain these patterns and contribute to a richer sense of private regulations on the ground manifestations.
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Bibliographic InfoArticle provided by De Gruyter in its journal Business and Politics.
Volume (Year): 12 (2010)
Issue (Month): 3 (October)
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Web page: http://www.degruyter.com
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- Jodi L. Short & Michael W. Toffel & Andrea Read Hugill, 2013. "Monitoring the Monitors: How Social Factors Influence Supply Chain Auditors," Harvard Business School Working Papers 14-032, Harvard Business School, revised Feb 2014.
- Michael W. Toffel & Jodi L. Short & Melissa Ouellet, 2012. "Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards," Harvard Business School Working Papers 13-045, Harvard Business School, revised Aug 2014.
- Agni Kalfagianni, 2014. "Addressing the Global Sustainability Challenge: The Potential and Pitfalls of Private Governance from the Perspective of Human Capabilities," Journal of Business Ethics, Springer, vol. 122(2), pages 307-320, June.
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