Why is the business case for social compliance in global value chains unpersuasive?: rethinking costs, prices and profits
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Organización Internacional del Trabajo (OIT)
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| Format: | Artículo científico |
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International Labour Organization
2021
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| _version_ | 1874525298796527617 |
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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 |