Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain

Distelhorst, Greg; Hainmueller, Jens; Locke, Richard M.

doi:10.1287/mnsc.2015.2369

Cited by 182 publications

(173 citation statements)

References 65 publications

(89 reference statements)

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“…This measure captures a particular version of capability building that relied on off‐site managerial training, rather than directly engaging suppliers on the factory floor (Sako , Distelhorst et al . ), and focused entirely on China, where code violations were most prevalent.…”

Section: Institutional Versus Factory‐level Explanationsmentioning

confidence: 99%

Production goes global, compliance stays local: Private regulation in the global electronics industry

Distelhorst

Locke

Pal

et al. 2015

Regulation & Governance

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138

103

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Poor working conditions in global supply chains have led to private initiatives that seek to regulate labor practices in developing countries. But how effective are these regulatory programs? We investigate the effects of transnational private regulation by studying Hewlett-Packard's (HP) supplier responsibility program. Using analysis of factory audits, interviews with buyer and supplier management, and field research at production facilities across seven countries, we find that national context -not repeated audits, capability building, or supply chain power -is the key predictor of workplace compliance. Quantitative analysis shows that factories in China are markedly less compliant than those in countries with stronger civil society and regulatory institutions. Comparative field research then illustrates how these local institutions complement transnational private regulation. Although these findings imply limits to private regulation in institutionally poor settings, they also highlight opportunities for productive linkages between transnational actors and local state and society.

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Section: Institutional Versus Factory‐level Explanationsmentioning

confidence: 99%

Production goes global, compliance stays local: Private regulation in the global electronics industry

Distelhorst

Locke

Pal

et al. 2015

Regulation & Governance

Self Cite

138

103

View full text Add to dashboard Cite

show abstract

“…Future research should examine industry-level trends. Arguably, the transmission of such cost pressures is likely to vary across different types of value or commodity chains (Gereffi and Frederick, 2010), and across firms even within a given industry (Distelhorst et al 2016). For example, this transmission might be more likely when buyers and customers are linked via shortterm contracts (e.g., textile industries) instead of longer-term contracts (e.g., heavy manufacturing).…”

Section: Discussionmentioning

confidence: 99%

Do Economic Problems at Home Undermine Worker Safety Abroad?: A Panel Study, 1980–2009

Lim¹,

Prakash

2017

World Development

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Do economic downturns in the Global North undermine worker safety in the Global South?Literature suggests that bilateral trade linkages lead to the diffusion of "good" labor standards from importing countries of the Global North to exporting countries of the Global South. The crucial mechanism is the ability and willingness of importing firms to deploy their market leverage and ask for improved labor standards from their overseas suppliers. Yet, cost-cutting pressures emanating from economic downturns might lead the same importing firms to give lower priority to worker safety in their overseas supply chains. When importing firms demand price reductions, overseas suppliers might respond by reducing wages, ignoring safety regulations, and working their labor force for longer hours. The observable implication is that worker safety in the Global South may deteriorate during economic downturns in their export markets located in the Global North. We evaluate our hypothesis using a panel of 83 developing countries for the period, 1980-2009, and find that economic downturns in developed country markets are associated with significant increases in non-fatal occupational injury rates in developing countries. The injury-increasing effect is more pronounced in developing countries with weak workers' rights protection. 2. Economic downturns compel firms to cut costs.3. Importers in developed countries seek cost cuts abroad.4. To remain competitive, developing country suppliers downgrade worker safety.5. Domestic labor laws and unions can shield the safety of workers.2

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“…Some scholars have shown that civil society and state regulatory mechanism can complement CSR programmes when they are strong, but the impact of CSR tends to be hampered in countries such as China due to state policies that do not sanction independent union formation (Distelhorst et al. ; Locke et al. ).…”

Section: Corporate Social Responsibility and Workers’ Rightsmentioning

confidence: 99%

CSR Participation Committees, Wildcat Strikes and the Sourcing Squeeze in Global Supply Chains

Anner

2017

Brit J Industrial Rel

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Lead firms in apparel global supply chains are increasingly using social compliance programmes that require worker‐management participation committees in their supplier factories. These committees are designed to ensure respect for internationally recognized labour standards, to empower workers, and to reduce labour unrest. However, these committees have remained weak, and in countries such as Vietnam worker unrest remains common. This article argues that this is because lead firms in these CSR programmes are imposing a ‘sourcing squeeze’ on supplier factors by reducing the prices and production times they allot to their suppliers, which undermines efforts by committees to address cost‐sensitive issues and overtime violations. At the same time, the sourcing squeeze increases strike leverage, providing workers with a much more effective source of worker voice.

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Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain

Cited by 182 publications

References 65 publications

Production goes global, compliance stays local: Private regulation in the global electronics industry

Production goes global, compliance stays local: Private regulation in the global electronics industry

Do Economic Problems at Home Undermine Worker Safety Abroad?: A Panel Study, 1980–2009

CSR Participation Committees, Wildcat Strikes and the Sourcing Squeeze in Global Supply Chains

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