Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards
Transnational business regulation is increasingly implemented through private voluntary programs-like certification regimes and codes of conduct-that diffuse global standards. But little is known about the conditions under which companies adhere to these standards. We conduct one of the first large-scale comparative studies to determine which international, domestic, civil society, and market institutions promote supply chain factories' adherence to the global labor standards embodied in codes of conduct imposed by multinational buyers. We find that suppliers are more likely to adhere when they are embedded in states that participate actively in the ILO treaty regime and that have stringent domestic labor law and high levels of press freedom. We further demonstrate that suppliers perform better when they serve buyers located in countries where consumers are wealthy and socially conscious. Taken together, these findings suggest the importance of overlapping state, civil society, and market governance regimes to meaningful transnational regulation.
|Date of creation:||Nov 2012|
|Date of revision:||Sep 2014|
|Contact details of provider:|| Postal: Soldiers Field, Boston, Massachusetts 02163|
Web page: http://www.hbs.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael W. Toffel, 2008. "Coerced Confessions: Self-Policing in the Shadow of the Regulator," Journal of Law, Economics and Organization, Oxford University Press, vol. 24(1), pages 45-71, May.
- David P. Baron, 2003. "Private Politics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(1), pages 31-66, 03.
- Richard M. Locke & Fei Qin & Alberto Brause, 2007. "Does Monitoring Improve Labor Standards? Lessons from Nike," ILR Review, Cornell University, ILR School, vol. 61(1), pages 3-31, October.
- Dyck, Alexander & Zingales, Luigi, 2002.
"The Corporate Governance Role of the Media,"
CEPR Discussion Papers
3630, C.E.P.R. Discussion Papers.
- Bartley Tim, 2010. "Transnational Private Regulation in Practice: The Limits of Forest and Labor Standards Certification in Indonesia," Business and Politics, De Gruyter, vol. 12(3), pages 1-36, October.
- Michael W. Toffel & Jodi L. Short, 2011. "Coming Clean and Cleaning Up: Does Voluntary Self-Reporting Indicate Effective Self-Policing?," Journal of Law and Economics, University of Chicago Press, vol. 54(3), pages 609-649.
- Michael J. Lenox & Charles E. Eesley, 2009. "Private Environmental Activism and the Selection and Response of Firm Targets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 45-73, 03.
- Erin Marie Reid & Michael W. Toffel, 2008. "Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies," Harvard Business School Working Papers 09-019, Harvard Business School, revised Jun 2009.
- Bartley, Tim, 2010. "Transnational Private Regulation in Practice: The Limits of Forest and Labor Standards Certification in Indonesia," Business and Politics, Cambridge University Press, vol. 12(03), pages 1-34, October.
- Chonnikarn (Fern) Jira & Michael W. Toffel, 2013. "Engaging Supply Chains in Climate Change," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 559-577, October.
- Colin Scott, 2010. "Regulatory Governance and the Challenge of Constitutionalism," EUI-RSCAS Working Papers 7, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
- Chonnikarn Fern Jira & Michael W. Toffel, 2011. "Engaging Supply Chains in Climate Change," Harvard Business School Working Papers 12-026, Harvard Business School, revised Oct 2012.
When requesting a correction, please mention this item's handle: RePEc:hbs:wpaper:13-045. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Soebagio Notosoehardjo)
If references are entirely missing, you can add them using this form.