IDEAS home Printed from https://ideas.repec.org/a/sae/ilrrev/v73y2020i4p841-872.html
   My bibliography  Save this article

Field Opacity and Practice-Outcome Decoupling: Private Regulation of Labor Standards in Global Supply Chains

Author

Listed:
  • Sarosh Kuruvilla
  • Mingwei Liu
  • Chunyun Li
  • Wansi Chen

Abstract

Although firms in diverse industries increasingly adopt private regulation of labor standards for workers in their global supply chains, growing scholarly evidence suggests that this approach has not generated sustainable improvements in working conditions for those workers. The authors draw on recent developments in institutional theory regarding the development of opaque institutional fields that cause the decoupling between practices and outcomes to develop a new explanation for the lack of sustainable improvement in labor practices in supply chains. Using qualitative and quantitative data from a global apparel supplier and a global home products retailer, they demonstrate the various ways in which opacity causes decoupling between private regulation practices of global firms and outcomes for workers in supply chains.

Suggested Citation

  • Sarosh Kuruvilla & Mingwei Liu & Chunyun Li & Wansi Chen, 2020. "Field Opacity and Practice-Outcome Decoupling: Private Regulation of Labor Standards in Global Supply Chains," ILR Review, Cornell University, ILR School, vol. 73(4), pages 841-872, August.
    • Handle: RePEc:sae:ilrrev:v:73:y:2020:i:4:p:841-872
    DOI: 10.1177/0019793920903278
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0019793920903278
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0019793920903278?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Xiaomin Yu, 2008. "Impacts of Corporate Code of Conduct on Labor Standards: A Case Study of Reebok’s Athletic Footwear Supplier Factory in China," Journal of Business Ethics, Springer, vol. 81(3), pages 513-529, September.
    2. Kimberly Ann Elliott & Richard B. Freeman, 2003. "Can Labor Standards Improve under Globalization?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 338.
    3. Dorothée Baumann-Pauly & Christopher Wickert & Laura Spence & Andreas Scherer, 2013. "Organizing Corporate Social Responsibility in Small and Large Firms: Size Matters," Journal of Business Ethics, Springer, vol. 115(4), pages 693-705, July.
    4. Guojun He & Jeffrey M. Perloff, 2013. "Does Customer Auditing Help Chinese Workers?," ILR Review, Cornell University, ILR School, vol. 66(2), pages 511-524, April.
    5. Mark Anner, 2018. "CSR Participation Committees, Wildcat Strikes and the Sourcing Squeeze in Global Supply Chains," British Journal of Industrial Relations, London School of Economics, vol. 56(1), pages 75-98, March.
    6. Locke, Richard M. & Qin, Fei & Brause, Alberto, 2007. "Does monitoring improve labor standards? Lessons from Nike," LSE Research Online Documents on Economics 59405, London School of Economics and Political Science, LSE Library.
    7. Peter Lund-Thomsen & Khalid Nadvi & Anita Chan & Navjote Khara & Hong Xue, 2012. "Labour in Global Value Chains: Work Conditions in Football Manufacturing in China, India and Pakistan," Development and Change, International Institute of Social Studies, vol. 43(6), pages 1211-1237, November.
    8. Maike J. Drebes, 2014. "Impediments to the implementation of voluntary codes of conduct in production factories of the Global South: so much to do, so little done," Third World Quarterly, Taylor & Francis Journals, vol. 35(7), pages 1256-1272, August.
    9. Stephanie BARRIENTOS & Gary GEREFFI & Arianna ROSSI, 2011. "Economic and social upgrading in global production networks: A new paradigm for a changing world," International Labour Review, International Labour Organization, vol. 150(3-4), pages 319-340, December.
    10. Jette Knudsen, 2013. "The Growth of Private Regulation of Labor Standards in Global Supply Chains: Mission Impossible for Western Small- and Medium-Sized Firms?," Journal of Business Ethics, Springer, vol. 117(2), pages 387-398, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chunyun Li & Sarosh Kuruvilla, 2023. "Corporate codes of conduct and labour turnover in global apparel supply chains," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 481-505, September.
    2. Matthew Amengual & Sarosh Kuruvilla, 2020. "Editorial Essay: Introduction to a Special Issue on Improving Private Regulation of Labor in Global Supply Chains: Theory and Evidence," ILR Review, Cornell University, ILR School, vol. 73(4), pages 809-816, August.
    3. Céline LOUCHE & Guillaume DELAUTRE & Gabriela BALVEDI PIMENTEL, 2023. "Assessing companies' decent work practices: An analysis of ESG rating methodologies," International Labour Review, International Labour Organization, vol. 162(1), pages 69-97, March.
    4. Alejandro Donado, 2021. "Why do they JUST DO IT? A Theory of Outsourcing and Working Conditions," Open Economies Review, Springer, vol. 32(3), pages 559-586, July.
    5. Premilla D’Cruz & Shuili Du & Ernesto Noronha & K. Praveen Parboteeah & Hannah Trittin-Ulbrich & Glen Whelan, 2022. "Technology, Megatrends and Work: Thoughts on the Future of Business Ethics," Journal of Business Ethics, Springer, vol. 180(3), pages 879-902, October.
    6. Virginia Doellgast & Matthew Bidwell & Alexander J. S. Colvin, 2021. "New Directions in Employment Relations Theory: Understanding Fragmentation, Identity, and Legitimacy," ILR Review, Cornell University, ILR School, vol. 74(3), pages 555-579, May.
    7. Jonathan Morris & Jean Jenkins & Jimmy Donaghey, 2021. "Uneven Development, Uneven Response: The Relentless Search for Meaningful Regulation of GVCs," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 3-24, March.
    8. Robertson,Raymond, 2021. "Deep Integration in Trade Agreements : Labor Clauses, Tariffs, and Trade Flows," Policy Research Working Paper Series 9599, The World Bank.
    9. Nathaniel Tetteh & Stephen Mustchin, 2023. "Contrasting union orientations and engagement with international private regulation: The agency and role of labour in MNC subsidiaries in Ghana," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 506-525, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kuruvilla, Sarosh & Liu, Mingwei & Li, Chunyun & Chen, Wansi, 2020. "Field opacity and practice-outcome decoupling: private regulation of labor standards in global supply chains," LSE Research Online Documents on Economics 101169, London School of Economics and Political Science, LSE Library.
    2. Enrico Fontana & Muhammad Atif & Ammar Ali Gull, 2021. "Corporate social responsibility decisions in apparel supply chains: The role of negative emotions in Bangladesh and Pakistan," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1700-1714, November.
    3. Peter Lund-Thomsen & Adam Lindgreen, 2014. "Corporate Social Responsibility in Global Value Chains: Where Are We Now and Where Are We Going?," Journal of Business Ethics, Springer, vol. 123(1), pages 11-22, August.
    4. Aurélien Acquier & Bertrand Valiorgue & Thibault Daudigeos, 2017. "Sharing the Shared Value: A Transaction Cost Perspective on Strategic CSR Policies in Global Value Chains," Journal of Business Ethics, Springer, vol. 144(1), pages 139-152, August.
    5. Sadaat Ali Yawar & Stefan Seuring, 2017. "Management of Social Issues in Supply Chains: A Literature Review Exploring Social Issues, Actions and Performance Outcomes," Journal of Business Ethics, Springer, vol. 141(3), pages 621-643, March.
    6. Andreas Georg Scherer & Andreas Rasche & Guido Palazzo & André Spicer, 2016. "Managing for Political Corporate Social Responsibility: New Challenges and Directions for PCSR 2.0," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 273-298, May.
    7. Gregory Distelhorst & Jee‐Eun Shin, 2023. "Assessing the Social Impact of Corporations: Evidence from Management Control Interventions in the Supply Chain to Increase Worker Wages," Journal of Accounting Research, Wiley Blackwell, vol. 61(3), pages 855-890, June.
    8. Clément SÉHIER, 2023. "Promoting the associational power of workers in globalized production networks: A missed opportunity," International Labour Review, International Labour Organization, vol. 162(1), pages 99-121, March.
    9. Rossi, Arianna, 2013. "Does Economic Upgrading Lead to Social Upgrading in Global Production Networks? Evidence from Morocco," World Development, Elsevier, vol. 46(C), pages 223-233.
    10. Seongtae Kim & Sangho Chae, 2022. "Shareholder Value Effects of Ethical Sourcing: Comparing Reactive and Proactive Initiatives," Journal of Business Ethics, Springer, vol. 179(3), pages 887-906, September.
    11. Plank, Leonhard & Rossi, Arianna & Staritz, Cornelia, 2012. "Workers and social upgrading in "fast fashion": The case of the apparel industry in Morocco and Romania," Working Papers 33, Austrian Foundation for Development Research (ÖFSE).
    12. repec:gdk:wpaper:54 is not listed on IDEAS
    13. Elisa Giuliani, 2016. "Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters," Journal of Business Ethics, Springer, vol. 133(1), pages 39-54, January.
    14. John S. Ahlquist & Layna Mosley, 2021. "Firm participation in voluntary regulatory initiatives: The Accord, Alliance, and US garment importers from Bangladesh," The Review of International Organizations, Springer, vol. 16(2), pages 317-343, April.
    15. Guojun He & Jeffrey M. Perloff, 2013. "Does Customer Auditing Help Chinese Workers?," ILR Review, Cornell University, ILR School, vol. 66(2), pages 511-524, April.
    16. Sarosh Kuruvilla & Chunyun Li, 2021. "Freedom of Association and Collective Bargaining in Global Supply Chains: A Research Agenda," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(2), pages 43-57, April.
    17. 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).
    18. Chunyun Li & Sarosh Kuruvilla, 2023. "Corporate codes of conduct and labour turnover in global apparel supply chains," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 481-505, September.
    19. Peter S. Hofman & Bin Wu & Kaiming Liu, 2014. "Collaborative Socially Responsible Practices for Improving the Position of Chinese Workers in Global Supply Chains," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 43(4), pages 111-141.
    20. Kim, Jee Young, 2013. "The Politics of Code Enforcement and Implementation in Vietnam’s Apparel and Footwear Factories," World Development, Elsevier, vol. 45(C), pages 286-295.
    21. Robertson, Raymond, 2020. "Pioneering a New Approach to Improving Working Conditions in Developing Countries: Better Factories Cambodia," IZA Discussion Papers 13095, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:ilrrev:v:73:y:2020:i:4:p:841-872. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.ilr.cornell.edu .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.