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Accounting for the Gaps in Labour Standard Compliance: The Role of Reputation-Conscious Buyers in the Cambodian Garment Industry

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  • Chikako Oka

    (RHUL - Royal Holloway [University of London])

Abstract

Working conditions in global supply chains have come under increased public scrutiny. Faced with this growing demand for accountability, some multinational enterprises have come to play regulatory roles in developing countries where they do business. This article combines quantitative and qualitative methods to examine the effects of reputation-conscious buyers on supplier labour standard compliance in the Cambodian garment sector. Using unique factory-level panel data, this article shows that factories producing for reputation-conscious buyers are associated with better compliance levels than other factories, controlling for factory characteristics. Field-based interviews also demonstrate that reputation-conscious buyers regulate supplier compliance both 'reactively' and 'proactively.' The findings shed light on the opportunities and limits of buyer-driven regulation. L'attention du public est de plus en plus attire´e par les conditions de travail dans la chaıˆne de valeur globale. Certaines firmes multinationales en viennent a`jouer un roˆle de re´gulation dans les pays ou`se situent leurs activite´s afin de re´pondre a`cette exigence de responsabilite´. Cet article combine des me´thodes quantitatives et qualitatives dans le but d'examiner les effets des comportements) responsables * des acheteurs quant au respect des normes du travail par les fournisseurs dans le secteur du veˆtement au Cambodge. A partir de donne´es de panel originales au niveau de l'entreprise, cet article de´montre que les entreprises produisant pour des acheteurs soucieux de leur image respectent mieux les normes internationales du travail que les autres entreprises, et ceci en utilisant les caracte´ristiques des firmes comme variables de controˆle. Des entretiens effectue´s sur le terrain soulignent e´galement que les acheteurs soucieux de leur image ont un roˆle de re´gulation vis-a`-vis du respect des normes par les fournisseurs que ce soit graˆce a`leurs initiatives ou a`leurs re´actions. Les re´sultats mettent en e´vidence a`la fois les opportunite´s et limites de la re´gulation par les acheteurs.

Suggested Citation

  • Chikako Oka, 2010. "Accounting for the Gaps in Labour Standard Compliance: The Role of Reputation-Conscious Buyers in the Cambodian Garment Industry," Post-Print hal-02952241, HAL.
    • Handle: RePEc:hal:journl:hal-02952241
    DOI: 10.1057/ejdr.2009.38
    Note: View the original document on HAL open archive server: https://hal.science/hal-02952241
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    References listed on IDEAS

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    Cited by:

    1. Yoko Asuyama & Dalin Chhun & Takahiro Fukunishi & Seiha Neou & Tatsufumi Yamagata, 2013. "Firm dynamics in the Cambodian garment industry: firm turnover, productivity growth and wage profile under trade liberalization," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 51-70.
    2. Naila Kabeer, 2018. "Women Workers and the Politics of Claims Making: The Local and the Global," Development and Change, International Institute of Social Studies, vol. 49(3), pages 759-789, May.
    3. Raymond Robertson & Drusilla Brown & Rajeev Dehejia, 2021. "Working conditions and factory survival: Evidence from better factories Cambodia," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 228-254, February.
    4. Ebert, Franz Christian., 2013. "Social dimensions of free trade agreements," Studies on Growth with Equity, International Labour Office, Research Department, number 994838513402676, April.
    5. Michael Palmer & Jenny Williams, 2020. "Are Employment Protection Laws for Disabled People Effective in a Developing Country?," Economics Discussion / Working Papers 20-22, The University of Western Australia, Department of Economics.
    6. Hyunji KWON & Sun Wook CHUNG & Joonkoo LEE, 2021. "South Korean first‐tier suppliers in apparel global value chains: Upgrading and labour implications in the Asian context," International Labour Review, International Labour Organization, vol. 160(4), pages 553-569, December.
    7. Ana ANTOLIN & Laura BABBITT & Drusilla BROWN, 2021. "Why is the business case for social compliance in global value chains unpersuasive? Rethinking costs, prices and profits," International Labour Review, International Labour Organization, vol. 160(4), pages 571-590, December.
    8. Mathias Koenig‐Archibugi, 2017. "Does transnational private governance reduce or displace labor abuses? Addressing sorting dynamics across global supply chains," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 343-352, December.
    9. Jean-Christophe Graz & Nicole Helmerich & Cécile Prébandier, 2020. "Hybrid Production Regimes and Labor Agency in Transnational Private Governance," Journal of Business Ethics, Springer, vol. 162(2), pages 307-321, March.
    10. Ebert, Franz Christian, 2013. "Social dimensions of free trade agreements," Studies on Growth with Equity 483851, International Labour Office, Research Department.
    11. Dionne Pohler & Chris Riddell, 2019. "Multinationals’ Compliance with Employment Law: An Empirical Assessment Using Administrative Data from Ontario, 2004 to 2015," ILR Review, Cornell University, ILR School, vol. 72(3), pages 606-635, May.
    12. Patrice Cassagnard & Tendai Espinosa, 2019. "From Boycott to Buycott: Is Activism from the North Good for the South?," Working papers of CATT hal-02623685, HAL.
    13. Jodi L. Short & Michael W. Toffel & Andrea R. Hugill, 2016. "Monitoring global supply chains," Strategic Management Journal, Wiley Blackwell, vol. 37(9), pages 1878-1897, September.
    14. Greg Distelhorst & Richard M. Locke & Timea Pal & Hiram Samel, 2015. "Production goes global, compliance stays local: Private regulation in the global electronics industry," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 224-242, September.
    15. Mari Tanaka, 2023. "Ethical production and export performance across destinations: evidence from Myanmar," The Japanese Economic Review, Springer, vol. 74(3), pages 413-437, July.

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