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Field opacity and practice-outcome decoupling: private regulation of labor standards in global supply chains

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  • Kuruvilla, Sarosh
  • Liu, Mingwei
  • Li, Chunyun
  • Chen, Wansi

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

  • 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.
    • Handle: RePEc:ehl:lserod:101169
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    References listed on IDEAS

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    Cited by:

    1. Robertson,Raymond, 2021. "Deep Integration in Trade Agreements : Labor Clauses, Tariffs, and Trade Flows," Policy Research Working Paper Series 9599, The World Bank.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.

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    More about this item

    Keywords

    multinational corporations; corporate codes of practice; labor standards; global supply chains; sustainability; social auditing; private regulation; private governance;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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