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Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters

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  • Gary Gereffi

    () (Duke University)

  • Joonkoo Lee

    () (Hanyang University)

Abstract

Abstract The burgeoning literature on global value chains (GVCs) has recast our understanding of how industrial clusters are shaped by their ties to the international economy, but within this context, the role played by corporate social responsibility (CSR) continues to evolve. New research in the past decade allows us to better understand how CSR is linked to industrial clusters and GVCs. With geographic production and trade patterns in many industries becoming concentrated in the global South, lead firms in GVCs have been under growing pressure to link economic and social upgrading in more integrated forms of CSR. This is leading to a confluence of “private governance” (corporate codes of conduct and monitoring), “social governance” (civil society pressure on business from labor organizations and non-governmental organizations), and “public governance” (government policies to support gains by labor groups and environmental activists). This new form of “synergistic governance” is illustrated with evidence from recent studies of GVCs and industrial clusters, as well as advances in theorizing about new patterns of governance in GVCs and clusters.

Suggested Citation

  • Gary Gereffi & Joonkoo Lee, 2016. "Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters," Journal of Business Ethics, Springer, vol. 133(1), pages 25-38, January.
  • Handle: RePEc:kap:jbuset:v:133:y:2016:i:1:d:10.1007_s10551-014-2373-7
    DOI: 10.1007/s10551-014-2373-7
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    References listed on IDEAS

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    1. repec:eee:wdevel:v:96:y:2017:i:c:p:294-314 is not listed on IDEAS
    2. Alison Ashby, 2016. "From global to local: reshoring for sustainability," Operations Management Research, Springer, vol. 9(3), pages 75-88, December.
    3. Caroline Hambloch, 2018. "Governance and Land Reform in the Palm Oil Value Chain in the Philippines," Working Papers 209, Department of Economics, SOAS, University of London, UK.
    4. repec:eee:worbus:v:53:y:2018:i:2:p:248-262 is not listed on IDEAS
    5. 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.

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