Governance of Decent Work in Ghana’s Cocoa Industry: Implications for Economic and Social Upgrading

This paper examines the factors that bring about the participation of smallholders in lead firm governance of labour-related practices. It also clarifies the conditions leading to smallholder decent work through economic and social upgrading. The study is based on qualitative primary data, collected from various key actors along Ghana’s cocoa value chains. Our findings show that lead firms govern decent work through vertical paths, horizontal paths and a combination of both paths. In addition, we found that smallholders’ participation in vertical, horizontal or both is influenced by incentives, cooperation and multi-stakeholder collaboration, respectively. Our study also reveals two types of economic upgrading—process upgrading and product upgrading—and clarifies the conditions through which economic and social upgrading are interlinked. Overall, our analysis shows that economic upgrading of smallholder cocoa farmers does not fully translate into social upgrading for the smallholders themselves and their farm workers. This is due to the cost of labour, weak labour monitoring, poor health training and education and the structural power of smallholder producers. We contribute to literature on key drivers for smallholder participation in various lead firm governance approaches—as well as on how global governance of value chains may simultaneously promote economic and social upgrading of smallholder producers and their farm workers. The study findings provide avenues for further research to enhance decent work in global value chains through economic and social upgrading.