IDEAS home Printed from https://ideas.repec.org/a/bla/brjirl/v61y2023i3p481-505.html
   My bibliography  Save this article

Corporate codes of conduct and labour turnover in global apparel supply chains

Author

Listed:
  • Chunyun Li
  • Sarosh Kuruvilla

Abstract

Research on private regulation of labour issues in global supply chains has focused extensively on whether supplier factories comply with the codes of conduct of global companies. Less is known about how such compliance relates to the preferences and behaviours of workers at export factories. This study analyses a unique dataset of factory audits matched with a survey of worker turnover rates from 622 factories in 28 countries supplying a large global apparel retailer. The results show that violations of the retailer's codes of conduct for suppliers are generally related to turnover, but that workers ‘vote with their feet’ primarily for violations of wages and benefits, relative to violations of other code provisions such as environment protection and safety standards. This ‘means‐ends’ decoupling between factory practices and worker preferences implies that global firms need to incorporate the livelihood logic that underlies workers' turnover decisions while implementing their private regulation programmes.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:brjirl:v:61:y:2023:i:3:p:481-505
    DOI: 10.1111/bjir.12705
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/bjir.12705
    Download Restriction: no

    File URL: https://libkey.io/10.1111/bjir.12705?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. Juliane Reinecke & Jimmy Donaghey, 2021. "Towards Worker‐Driven Supply Chain Governance: Developing Decent Work Through Democratic Worker Participation," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(2), pages 14-28, April.
    2. Viscusi, W Kip & Aldy, Joseph E, 2003. "The Value of a Statistical Life: A Critical Review of Market Estimates throughout the World," Journal of Risk and Uncertainty, Springer, vol. 27(1), pages 5-76, August.
    3. S. Hansen & Benjamin Dunford & Alan Boss & R. Boss & Ingo Angermeier, 2011. "Corporate Social Responsibility and the Benefits of Employee Trust: A Cross-Disciplinary Perspective," Journal of Business Ethics, Springer, vol. 102(1), pages 29-45, August.
    4. Yanhua Bird & Jodi L. Short & Michael W. Toffel, 2019. "Coupling Labor Codes of Conduct and Supplier Labor Practices: The Role of Internal Structural Conditions," Organization Science, INFORMS, vol. 30(4), pages 847-867, July.
    5. Luc Fransen & Brian Burgoon, 2012. "A market for worker rights: Explaining business support for international private labour regulation," Review of International Political Economy, Taylor & Francis Journals, vol. 19(2), pages 236-266.
    6. Niklas Lollo & Dara O’Rourke, 2020. "Factory benefits to paying workers more: The critical role of compensation systems in apparel manufacturing," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-24, February.
    7. 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.
    8. Jodi L. Short & Michael W. Toffel & Andrea R. Hugill, 2020. "Improving Working Conditions in Global Supply Chains: The Role of Institutional Environments and Monitoring Program Design," ILR Review, Cornell University, ILR School, vol. 73(4), pages 873-912, August.
    9. Matthew Amengual & Greg Distelhorst & Danny Tobin, 2020. "Global Purchasing as Labor Regulation: The Missing Middle," ILR Review, Cornell University, ILR School, vol. 73(4), pages 817-840, August.
    10. Vivek Soundararajan & Jill A. Brown, 2016. "Voluntary Governance Mechanisms in Global Supply Chains: Beyond CSR to a Stakeholder Utility Perspective," Journal of Business Ethics, Springer, vol. 134(1), pages 83-102, March.
    11. 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.
    12. Ashwin, Sarah & Oka, Chikako & Schüßler, Elke & Alexander, Rachel & Lohmeyer, Nora, 2020. "Spillover effects across transnational industrial relations agreements: the potential and limits of collective action in global supply chains," LSE Research Online Documents on Economics 100997, London School of Economics and Political Science, LSE Library.
    13. Peter Lund-Thomsen & Adam Lindgreen & Joelle Vanhamme, 2016. "Industrial Clusters and Corporate Social Responsibility in Developing Countries: What We Know, What We do not Know, and What We Need to Know," Journal of Business Ethics, Springer, vol. 133(1), pages 9-24, January.
    14. LEBARON, Genevieve, 2021. "Wages: An Overlooked Dimension of Business and Human Rights in Global Supply Chains," Business and Human Rights Journal, Cambridge University Press, vol. 6(1), pages 1-20, February.
    15. 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.
    16. Andrew Dorward & Simon Anderson & Yolanda Nava Bernal & Ernesto Sánchez Vera & Jonathan Rushton & James Pattison & Rodrigo Paz, 2009. "Hanging in, stepping up and stepping out: livelihood aspirations and strategies of the poor," Development in Practice, Taylor & Francis Journals, vol. 19(2), pages 240-247, April.
    17. repec:reg:rpubli:282 is not listed on IDEAS
    18. Michael W. Toffel & Jodi L. Short & Melissa Ouellet, 2015. "Codes in context: How states, markets, and civil society shape adherence to global labor standards," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 205-223, September.
    19. Gregory Jackson & Virginia Doellgast & Lucio Baccaro, 2018. "Corporate Social Responsibility and Labour Standards: Bridging Business Management and Employment Relations Perspectives," British Journal of Industrial Relations, London School of Economics, vol. 56(1), pages 3-13, March.
    20. Sarah Ashwin & Chikako Oka & Elke Schuessler & Rachel Alexander & Nora Lohmeyer, 2020. "Spillover Effects across Transnational Industrial Relations Agreements: The Potential and Limits of Collective Action in Global Supply Chains," ILR Review, Cornell University, ILR School, vol. 73(4), pages 995-1020, August.
    21. Sarah Ashwin & Chikako Oka & Elke Schüssler & Rachel Alexander & Nora Lohmeyer, 2020. "Spillover Effects Across Transnational Industrial Relations Agreements: The Potential and Limits of Collective Action in Global Supply Chains," Post-Print hal-02952125, HAL.
    22. Chikako Oka, 2016. "Improving Working Conditions in Garment Supply Chains: The Role of Unions in Cambodia," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 647-672, September.
    23. Chikako Oka, 2016. "Improving working conditions in garment supply chains: The role of unions in Cambodia," Post-Print hal-02952169, HAL.
    24. Jimmy Donaghey & Juliane Reinecke, 2018. "When Industrial Democracy Meets Corporate Social Responsibility — A Comparison of the Bangladesh Accord and Alliance as Responses to the Rana Plaza Disaster," British Journal of Industrial Relations, London School of Economics, vol. 56(1), pages 14-42, March.
    25. Juliane Reinecke & Jimmy Donaghey, 2021. "Political CSR at the Coalface – The Roles and Contradictions of Multinational Corporations in Developing Workplace Dialogue," Journal of Management Studies, Wiley Blackwell, vol. 58(2), pages 457-486, March.
    26. 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.
    27. 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.
    28. Greg Distelhorst & Jens Hainmueller & Richard M. Locke, 2017. "Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain," Management Science, INFORMS, vol. 63(3), pages 707-728, March.
    29. Tim Bartley, 2022. "Power and the Practice of Transnational Private Regulation," New Political Economy, Taylor & Francis Journals, vol. 27(2), pages 188-202, March.
    30. 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.
    31. Richard Locke & Matthew Amengual & Akshay Mangla, 2009. "Virtue out of Necessity? Compliance, Commitment, and the Improvement of Labor Conditions in Global Supply Chains," Politics & Society, , vol. 37(3), pages 319-351, September.
    32. 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.
    33. Mark Vicol & Niels Fold & Bill Pritchard & Jeffrey Neilson, 2019. "Global production networks, regional development trajectories and smallholder livelihoods in the Global South," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 973-993.
    34. Stephanie Barrientos & Andrienetta Kritzinger, 2004. "Squaring the circle: global production and the informalization of work in South African fruit exports," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(1), pages 81-92.
    35. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    36. 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.
    Full references (including those not matched with items on IDEAS)

    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. Chikako Oka & Niklas Egels‐Zandén & Rachel Alexander, 2020. "Buyer Engagement and Labour Conditions in Global Supply Chains: The Bangladesh Accord and Beyond," Development and Change, International Institute of Social Studies, vol. 51(5), pages 1306-1330, 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. 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.
    4. Yossi Dahan & Hanna Lerner & Faina Milman-Sivan, 2023. "Shared Responsibility and Labor Rights in Global Supply Chains," Journal of Business Ethics, Springer, vol. 182(4), pages 1025-1040, February.
    5. Sarah Castaldi & Miriam M. Wilhelm & Sjoerd Beugelsdijk & Taco Vaart, 2023. "Extending Social Sustainability to Suppliers: The Role of GVC Governance Strategies and Supplier Country Institutions," Journal of Business Ethics, Springer, vol. 183(1), pages 123-146, February.
    6. 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.
    7. Juliane Reinecke & Jimmy Donaghey, 2021. "Towards Worker‐Driven Supply Chain Governance: Developing Decent Work Through Democratic Worker Participation," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(2), pages 14-28, April.
    8. Schüßler, Elke & Lohmeyer, Nora & Ashwin, Sarah, 2022. "We can't compete on human rights: creating market-protected spaces to institutionalize the emerging logic of responsible management," LSE Research Online Documents on Economics 115506, London School of Economics and Political Science, LSE Library.
    9. Stephen J. FRENKEL & Elke S. SCHUESSLER, 2021. "From Rana Plaza to COVID‐19: Deficiencies and opportunities for a new labour governance system in garment global supply chains," International Labour Review, International Labour Organization, vol. 160(4), pages 591-609, December.
    10. 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.
    11. 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.
    12. Chikako Oka & Niklas Egels‐zandén & Rachel Alexander, 2020. "Buyer Engagement and Labour Conditions in Global Supply Chains: The Bangladesh Accord and Beyond," Post-Print hal-02952114, HAL.
    13. Jenny COLLINS & Julian S. YATES, 2023. "Leveraging transparency to shift capital‐labour relations in garment sector production: A critical analysis of the design and structure of the Bangladesh Accord," International Labour Review, International Labour Organization, vol. 162(4), pages 641-664, December.
    14. Oka, Chikako & Egels-Zandén, Niklas & Alexander, Rachel, 2020. "Buyer engagement and labour conditions in global supply chains: the Bangladesh Accord and beyond," LSE Research Online Documents on Economics 106695, London School of Economics and Political Science, LSE Library.
    15. Sarah Ashwin & Naila Kabeer & Elke Schüßler, 2020. "Contested Understandings in the Global Garment Industry after Rana Plaza," Development and Change, International Institute of Social Studies, vol. 51(5), pages 1296-1305, September.
    16. 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.
    17. 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.
    18. Anthony Goerzen & Simon Peter Iskander & Joerg Hofstetter, 2021. "The effect of institutional pressures on business-led interventions to improve social compliance among emerging market suppliers in global value chains," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 347-367, September.
    19. Kelly Pike, 2020. "Voice in Supply Chains: Does the Better Work Program Lead to Improvements in Labor Standards Compliance?," ILR Review, Cornell University, ILR School, vol. 73(4), pages 913-938, August.
    20. Fabiola MIERES & Siobhán MCGRATH, 2021. "Ripe to be heard: Worker voice in the Fair Food Program," International Labour Review, International Labour Organization, vol. 160(4), pages 631-647, December.

    More about this item

    Statistics

    Access and download statistics

    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:bla:brjirl:v:61:y:2023:i:3:p:481-505. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    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.