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A market for worker rights: Explaining business support for international private labour regulation

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  • Luc Fransen
  • Brian Burgoon

Abstract

Why do companies choose the private labour regulations that they do? Scholars know plenty about why companies might accept private regulators to oversee and protect labour standards. But they know very little about why companies choose one rather than another private regulatory approach when several are available, differing in terms of stringency. This paper explores the conditions under which companies in the clothing industry choose private labour-standards regulation with more rather than less stringent regulation. It does so based on qualitative and quantitative analysis of clothing companies in Europe. It argues that business preference for more stringent private labour regulation is positively affected by societal pressure, and that this societal pressure is predominantly orchestrated by activist groups. This not only entails campaigns, but also can be a combination of public and informal efforts to influence companies, together with pressures from consumers and media. This research also shows that national and industrial factors play a role. In particular, the position of the firm in the value chain and its distance to consumers and manufacturers affect preference for more or less stringent private regulation. Societal pressure is therefore important but not the only source of business preferences for private regulation.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:rripxx:v:19:y:2012:i:2:p:236-266
    DOI: 10.1080/09692290.2011.552788
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    Citations

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    Cited by:

    1. Stefan Renckens & Graeme Auld, 2022. "Time to certify: Explaining varying efficiency of private regulatory audits," Regulation & Governance, John Wiley & Sons, vol. 16(2), pages 500-518, April.
    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. Hamish van der Ven, 2015. "Correlates of rigorous and credible transnational governance: A cross‐sectoral analysis of best practice compliance in eco‐labeling," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 276-293, September.
    4. Dietz, Thomas & Auffenberg, Jennie & Estrella Chong, Andrea & Grabs, Janina & Kilian, Bernard, 2018. "The Voluntary Coffee Standard Index (VOCSI). Developing a Composite Index to Assess and Compare the Strength of Mainstream Voluntary Sustainability Standards in the Global Coffee Industry," Ecological Economics, Elsevier, vol. 150(C), pages 72-87.
    5. Izabela Jedrzejowska-Schiffauer & Peter Schiffauer, 2020. "Human Rights Due Diligence As Part Of Corporate Risk Management: Insights From The EU Policy Debate," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 973-984.
    6. repec:bla:glopol:v:8:y:2017:i:s3:p:15-28 is not listed on IDEAS
    7. Nick Bernards & Malcolm Campbell‐Verduyn & Daivi Rodima‐Taylor & Jerome Duberry & Quinn DuPont & Andreas Dimmelmeier & Moritz Huetten & Laura C. Mahrenbach & Tony Porter & Bernhard Reinsberg, 2020. "Interrogating Technology‐led Experiments in Sustainability Governance," Global Policy, London School of Economics and Political Science, vol. 11(4), pages 523-531, September.
    8. repec:bla:glopol:v:8:y:2017:i:s3:p:66-77 is not listed on IDEAS
    9. Elke Schuessler & Stephen J. Frenkel & Chris F. Wright, 2019. "Governance of Labor Standards in Australian and German Garment Supply Chains: The Impact of Rana Plaza," ILR Review, Cornell University, ILR School, vol. 72(3), pages 552-579, May.
    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.
    11. Stefan Renckens, 2021. "Disaggregating public‐private governance interactions: European Union interventions in transnational private sustainability governance," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1230-1247, October.
    12. Steve Williams & Brian Abbott & Edmund Heery, 2017. "Civil Governance in Work and Employment Relations: How Civil Society Organizations Contribute to Systems of Labour Governance," Journal of Business Ethics, Springer, vol. 144(1), pages 103-119, August.
    13. Janina Grabs & Graeme Auld & Benjamin Cashore, 2021. "Private regulation, public policy, and the perils of adverse ontological selection," Regulation & Governance, John Wiley & Sons, vol. 15(4), pages 1183-1208, October.
    14. Burkard Eberlein & Kenneth W. Abbott & Julia Black & Errol Meidinger & Stepan Wood, 2014. "Transnational business governance interactions: Conceptualization and framework for analysis," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 1-21, March.
    15. Luc Fransen & Brian Burgoon & Sijeong Lim & Aseem Prakash, 2017. "From Quality Control to Labor Protection: ISO 9001 and Workplace Safety, 1993–2012," Global Policy, London School of Economics and Political Science, vol. 8, pages 66-77, May.
    16. Luc Fransen & Thomas Conzelmann, 2015. "Fragmented or cohesive transnational private regulation of sustainability standards? A comparative study," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 259-275, September.
    17. Chris F. Wright, 2016. "Leveraging Reputational Risk: Sustainable Sourcing Campaigns for Improving Labour Standards in Production Networks," Journal of Business Ethics, Springer, vol. 137(1), pages 195-210, August.
    18. Grabs, Janina & Kilian, Bernard & Hernandez, Daniel Calderon & Dietz, Thomas, 2016. "Understanding Coffee Certification Dynamics: A Spatial Analysis of Voluntary Sustainability Standard Proliferation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(3), pages 1-26, August.
    19. Luc Fransen & Brian Burgoon & Genevieve LeBaron & Andreas Rühmkorf, 2017. "Steering CSR Through Home State Regulation: A Comparison of the Impact of the UK Bribery Act and Modern Slavery Act on Global Supply Chain Governance," Global Policy, London School of Economics and Political Science, vol. 8, pages 15-28, May.

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