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Accounting for the Gaps in Labour Standard Compliance: The Role of Reputation-Conscious Buyers in the Cambodian Garment Industry

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  • Chikako Oka

    (London School of Economics, Department of Management, London.)

Abstract

Working conditions in global supply chains have come under increased public scrutiny. Faced with this growing demand for accountability, some multinational enterprises have come to play regulatory roles in developing countries where they do business. This article combines quantitative and qualitative methods to examine the effects of reputation-conscious buyers on supplier labour standard compliance in the Cambodian garment sector. Using unique factory-level panel data, this article shows that factories producing for reputation-conscious buyers are associated with better compliance levels than other factories, controlling for factory characteristics. Field-based interviews also demonstrate that reputation-conscious buyers regulate supplier compliance both ‘reactively’ and ‘proactively.’ The findings shed light on the opportunities and limits of buyer-driven regulation.L’attention du public est de plus en plus attirée par les conditions de travail dans la chaîne de valeur globale. Certaines firmes multinationales en viennent à jouer un rôle de régulation dans les pays où se situent leurs activités afin de répondre à cette exigence de responsabilité. Cet article combine des méthodes quantitatives et qualitatives dans le but d’examiner les effets des comportements « responsables » des acheteurs quant au respect des normes du travail par les fournisseurs dans le secteur du vêtement au Cambodge. A partir de données de panel originales au niveau de l’entreprise, cet article démontre que les entreprises produisant pour des acheteurs soucieux de leur image respectent mieux les normes internationales du travail que les autres entreprises, et ceci en utilisant les caractéristiques des firmes comme variables de contrôle. Des entretiens effectués sur le terrain soulignent également que les acheteurs soucieux de leur image ont un rôle de régulation vis-à-vis du respect des normes par les fournisseurs que ce soit grâce à leurs initiatives ou à leurs réactions. Les résultats mettent en évidence à la fois les opportunités et limites de la régulation par les acheteurs.

Suggested Citation

  • Chikako Oka, 2010. "Accounting for the Gaps in Labour Standard Compliance: The Role of Reputation-Conscious Buyers in the Cambodian Garment Industry," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 22(1), pages 59-78, February.
    • Handle: RePEc:pal:eurjdr:v:22:y:2010:i:1:p:59-78
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    Citations

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    Cited by:

    1. Robertson, Raymond, 2019. "Working Conditions, Transparency, and Compliance in Global Value Chains: Evidence from Better Work Jordan," IZA Discussion Papers 12794, Institute of Labor Economics (IZA).
    2. Yoko Asuyama & Dalin Chhun & Takahiro Fukunishi & Seiha Neou & Tatsufumi Yamagata, 2013. "Firm dynamics in the Cambodian garment industry: firm turnover, productivity growth and wage profile under trade liberalization," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 51-70.
    3. Naila Kabeer, 2018. "Women Workers and the Politics of Claims Making: The Local and the Global," Development and Change, International Institute of Social Studies, vol. 49(3), pages 759-789, May.
    4. Raymond Robertson & Drusilla Brown & Rajeev Dehejia, 2021. "Working conditions and factory survival: Evidence from better factories Cambodia," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 228-254, February.
    5. Jodi L. Short & Michael W. Toffel & Andrea R. Hugill, 2016. "Code Contingencies: Designing Monitoring Regimes to Promote Improvement in Supply Chain Working Conditions," Harvard Business School Working Papers 17-001, Harvard Business School, revised Mar 2019.
    6. Mendez, Samara & Peacock, Jacob & Butner, Matt, 2020. "Impact of Corporate Commitments to Source Cage-Free Eggs on Layer Hen Housing," OSF Preprints hkrsm, Center for Open Science.
    7. Hyunji KWON & Sun Wook CHUNG & Joonkoo LEE, 2021. "South Korean first‐tier suppliers in apparel global value chains: Upgrading and labour implications in the Asian context," International Labour Review, International Labour Organization, vol. 160(4), pages 553-569, December.
    8. Patrice CASSAGNARD & Tendai ESPINOSA, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working Papers 2019-2020_3, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Dec 2019.
    9. Phon, Sophat & Khan, Sophy & Pich, Chansothi, 2017. "The simultaneous impacts of the increased minimum wage on the labor market and economy growth in Cambodia: Inside -Outside model or Monopoly-Union model?," MPRA Paper 88075, University Library of Munich, Germany, revised 26 Jul 2018.
    10. Koenig-Archibugi, Mathias, 2017. "Does transnational private governance reduce or displace labor abuses? Addressing sorting dynamics across global supply chains," LSE Research Online Documents on Economics 83517, London School of Economics and Political Science, LSE Library.
    11. Jean-Christophe Graz & Nicole Helmerich & Cécile Prébandier, 2020. "Hybrid Production Regimes and Labor Agency in Transnational Private Governance," Journal of Business Ethics, Springer, vol. 162(2), pages 307-321, March.
    12. Dionne Pohler & Chris Riddell, 2019. "Multinationals’ Compliance with Employment Law: An Empirical Assessment Using Administrative Data from Ontario, 2004 to 2015," ILR Review, Cornell University, ILR School, vol. 72(3), pages 606-635, May.
    13. Jodi L. Short & Michael W. Toffel & Andrea R. Hugill, 2016. "Monitoring global supply chains," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1878-1897, September.
    14. Mari Tanaka, 2023. "Ethical production and export performance across destinations: evidence from Myanmar," The Japanese Economic Review, Springer, vol. 74(3), pages 413-437, July.
    15. Ebert, Franz Christian., 2013. "Social dimensions of free trade agreements," Studies on Growth with Equity, International Labour Office, Research Department, number 994838513402676, October.
    16. Patrice Cassagnard & Tendai Espinosa, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working Papers hal-02623685, HAL.
    17. Michael Palmer & Jenny Williams, 2020. "Are Employment Protection Laws for Disabled People Effective in a Developing Country?," Economics Discussion / Working Papers 20-22, The University of Western Australia, Department of Economics.
    18. Ana ANTOLIN & Laura BABBITT & Drusilla BROWN, 2021. "Why is the business case for social compliance in global value chains unpersuasive? Rethinking costs, prices and profits," International Labour Review, International Labour Organization, vol. 160(4), pages 571-590, December.
    19. Mathias Koenig‐Archibugi, 2017. "Does transnational private governance reduce or displace labor abuses? Addressing sorting dynamics across global supply chains," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 343-352, December.
    20. Ebert, Franz Christian, 2013. "Social dimensions of free trade agreements," Studies on Growth with Equity 483851, International Labour Office, Research Department.
    21. Patrice Cassagnard & Tendai Espinosa, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working papers of CATT hal-02623685, HAL.
    22. Greg Distelhorst & Richard M. Locke & Timea Pal & Hiram Samel, 2015. "Production goes global, compliance stays local: Private regulation in the global electronics industry," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 224-242, September.
    23. Venkatesh, V.G. & Zhang, Abraham & Deakins, Eric & Mani, Venkatesh, 2021. "Antecedents of social sustainability noncompliance in the Indian apparel sector," International Journal of Production Economics, Elsevier, vol. 234(C).

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