Why is the business case for social compliance in global value chains unpersuasive?: rethinking costs, prices and profits

Fuente: Organización Internacional del Trabajo (OIT)
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Hauptverfasser: Ana Antolín, Laura Babbitt, Drusilla K. Brown
Format: Artículo científico
Veröffentlicht: International Labour Organization 2021
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author Ana Antolín
Laura Babbitt
Drusilla K. Brown
author_facet Ana Antolín
Laura Babbitt
Drusilla K. Brown
Ana Antolín
Laura Babbitt
Drusilla K. Brown
contents Why is the business case for social compliance in global value chains unpersuasive?: rethinking costs, prices and profits Ana Antolín Laura Babbitt Drusilla K. Brown Stakeholders in global value chains (GVCs) commonly argue that factory managers will choose humane working conditions if they can be persuaded that social compliance improves firm performance. Yet, despite evidence that humane conditions increase productivity, product quality and on-time delivery, inhumane conditions in GVCs persist. Evidence from a sample of Better Work factories in Vietnam, Indonesia and Jordan indicates that achieving social compliance may be costly, offsetting productivity benefits. A positive impact on profits depends on international buyer sourcing practices including higher output prices. The essential contribution of buyers in determining working conditions was confirmed during the COVID-19 pandemic. publication.journalArticle
format Artículo científico
id ilo_995219195302676
institution Organización Internacional del Trabajo (OIT)
publishDate 2021
publisher International Labour Organization
spellingShingle Why is the business case for social compliance in global value chains unpersuasive?: rethinking costs, prices and profits
Ana Antolín
Laura Babbitt
Drusilla K. Brown
Why is the business case for social compliance in global value chains unpersuasive?: rethinking costs, prices and profits Ana Antolín Laura Babbitt Drusilla K. Brown Stakeholders in global value chains (GVCs) commonly argue that factory managers will choose humane working conditions if they can be persuaded that social compliance improves firm performance. Yet, despite evidence that humane conditions increase productivity, product quality and on-time delivery, inhumane conditions in GVCs persist. Evidence from a sample of Better Work factories in Vietnam, Indonesia and Jordan indicates that achieving social compliance may be costly, offsetting productivity benefits. A positive impact on profits depends on international buyer sourcing practices including higher output prices. The essential contribution of buyers in determining working conditions was confirmed during the COVID-19 pandemic. publication.journalArticle
title Why is the business case for social compliance in global value chains unpersuasive?: rethinking costs, prices and profits
url https://researchrepository.ilo.org/esploro/outputs/journalArticle/Why-is-the-business-case-for/995219195302676