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Transnational Private Regulation in Practice: The Limits of Forest and Labor Standards Certification in Indonesia

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  • Bartley Tim

    (Indiana University)

Abstract

Systems for certifying sustainable resource use and decent labor conditions have become prominent modes of private regulation at the transnational level. But serious questions remain about how these global standards are put into practice in particular places, especially in developing countries. Drawing on fieldwork in Indonesia, this paper examines the growth of certification of sustainable forestry (e.g., through the Forest Stewardship Council) and certification of decent labor conditions in factories (e.g., through Social Accountability International). Based on the controversy that surrounded both sweatshops and deforestation in Indonesia, and the export dependence of both the apparel/footwear and forest products sectors, these would appear to be prime candidates for the application of certification. Yet in both sectors, the growth of multi-stakeholder certification has been limited. Furthermore, private regulation in Indonesia has taken somewhat divergent paths in these two sectors, which shapes certification's significance at the point of production. The paper examines how the socio-legal context of certification, the character of supply chain relationships, and possible differences in the politics of labor and the environment can help to explain these patterns and contribute to a richer sense of private regulation's "on the ground" manifestations.

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  • 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.
    • Handle: RePEc:bpj:buspol:v:12:y:2010:i:3:n:7
    DOI: 10.2202/1469-3569.1321
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    5. Golgeci, Ismail & Makhmadshoev, Dilshod & Demirbag, Mehmet, 2021. "Global value chains and the environmental sustainability of emerging market firms: A systematic review of literature and research agenda," International Business Review, Elsevier, vol. 30(5).
    6. Helmerich, Nicole & Raj-Reichert, Gale & Zajak, Sabrina, 2021. "Exercising associational and networked power through the use of digital technology by workers in global value chains," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 25(2), pages 142-166.
    7. Sietze Vellema & Greetje Schouten & Rob Van Tulder, 2020. "Partnering capacities for inclusive development in food provisioning," Development Policy Review, Overseas Development Institute, vol. 38(6), pages 710-727, November.
    8. Rachel Alexander, 2020. "Emerging Roles of Lead Buyer Governance for Sustainability Across Global Production Networks," Journal of Business Ethics, Springer, vol. 162(2), pages 269-290, March.
    9. Jodi L. Short & Michael W. Toffel & Andrea Read Hugill, 2013. "Monitoring Global Supply Chains," Harvard Business School Working Papers 14-032, Harvard Business School, revised Jun 2015.
    10. 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.
    11. Tim Bartley, 2014. "Transnational governance and the re‐centered state: Sustainability or legality?," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 93-109, March.
    12. Alexander, Rachel, 2020. "Emerging roles of lead buyer governance for sustainability across global production networks," LSE Research Online Documents on Economics 100908, London School of Economics and Political Science, LSE Library.
    13. Agni Kalfagianni, 2014. "Addressing the Global Sustainability Challenge: The Potential and Pitfalls of Private Governance from the Perspective of Human Capabilities," Journal of Business Ethics, Springer, vol. 122(2), pages 307-320, June.
    14. Büthe Tim, 2010. "Global Private Politics: A Research Agenda," Business and Politics, De Gruyter, vol. 12(3), pages 1-26, October.
    15. Youbin KANG, 2021. "The rise, demise and replacement of the Bangladesh experiment in transnational labour regulation," International Labour Review, International Labour Organization, vol. 160(3), pages 407-430, September.
    16. McCaffrey Sara Jane & Kurland Nancy, 2014. "Who defines “local”? Resistance to harmonizing standards in ethical markets," Business and Politics, De Gruyter, vol. 16(1), pages 191-219, April.
    17. Wenlong He & Wei Yang & Seong-jin Choi, 2018. "The Interplay Between Private and Public Regulations: Evidence from ISO 14001 Adoption Among Chinese Firms," Journal of Business Ethics, Springer, vol. 152(2), pages 477-497, October.
    18. Khalid Nadvi & Gale Raj‐Reichert, 2015. "Governing health and safety at lower tiers of the computer industry global value chain," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 243-258, September.
    19. Andonova, Liliana B. & Piselli, Dario, 2022. "Transnational partnerships, domestic institutions, and sustainable development. The case of Brazil and the Amazon Region Protected Areas program," World Development, Elsevier, vol. 157(C).
    20. Tannis Thorlakson, 2018. "A move beyond sustainability certification: The evolution of the chocolate industry's sustainable sourcing practices," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1653-1665, December.
    21. Alejandro Milcíades Peña, 2018. "The politics of resonance: Transnational sustainability governance in Argentina," Regulation & Governance, John Wiley & Sons, vol. 12(1), pages 150-170, March.
    22. Whytock Christopher A., 2010. "Private-Public Interaction in Global Governance: The Case of Transnational Commercial Arbitration," Business and Politics, De Gruyter, vol. 12(3), pages 1-29, October.
    23. Michael W. Toffel & Jodi L. Short & Melissa Ouellet, 2012. "Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards," Harvard Business School Working Papers 13-045, Harvard Business School, revised Sep 2014.
    24. Malets, Olga, 2013. "The effectiveness of transnational non-state governance: The role of domestic regulations and compliance assessment in practice," MPIfG Discussion Paper 13/12, Max Planck Institute for the Study of Societies.
    25. Mayer Frederick & Gereffi Gary, 2010. "Regulation and Economic Globalization: Prospects and Limits of Private Governance," Business and Politics, De Gruyter, vol. 12(3), pages 1-27, October.

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