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The Public Relations Effect of Global Framework Agreements

In: Contracting International Employee Participation

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  • Felix Hadwiger

    (University of Hamburg)

Abstract

This chapter analyzes in greater depth one of the identified incentives why companies sign GFAs (see Chap. 5 ). The assumption is that they do this to create a positive corporate image for third parties, which has various benefits: getting buyers to take a favorable view of products, attracting investors, lowering the cost of capital, assuring business partners, and attracting suitable employees (Oh et al. 2016, p. 1). Companies increasingly seek to show themselves to third parties as socially and environmentally responsible. In the last two decades, many MNCs have signed codes of conduct to create a positive corporate image (Herrnstadt 2007, p. 187; Preuss 2010, p. 475), signaling to third parties their commitment to sustainable and responsible standards throughout their global value chain (Rühmkorf 2015, p. 81). Similar to codes of conduct, MNCs could leverage GFAs for public relation purposes.

Suggested Citation

  • Felix Hadwiger, 2018. "The Public Relations Effect of Global Framework Agreements," International Law and Economics, in: Contracting International Employee Participation, chapter 0, pages 111-135, Springer.
    • Handle: RePEc:spr:intchp:978-3-319-71099-0_6
    DOI: 10.1007/978-3-319-71099-0_6
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