Labor Standards and Labor Market Flexibility in East Asia

Caraway, Teri L.

doi:10.1007/s12116-010-9061-0

Cited by 33 publications

(17 citation statements)

References 30 publications

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“…In particular, it seems that those companies appear to be understanding how to socially 'treat' their employees and communicate this in their annual reports. Alternatively, there may be other influences, which have not been tested in this study, and therefore it can only be speculated that the overall growth in LPWD disclosures is a combination of Indonesia's strengthening labour laws and external influences such as the application of SA8000 19 by many Indonesian companies (Aspiring Innovative Management Services, 2013), ratification of the ILO core labour conventions and increased economic globalisation (Caraway, 2010).…”

Section: Discussionmentioning

confidence: 99%

The Indonesian Government’s coercive pressure on labour disclosures

Cahaya

Porter

Tower

et al. 2015

Sustainability Accounting, Management and Policy Journal

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Purpose-This study focuses on corporate social responsibility and workplace wellbeing by examining Indonesian Stock Exchange (IDX) listed companies' labour disclosures. Design/methodology/approach-Year-ending 2007 and 2010 annual report disclosures of 31 IDX listed companies are analyzed. The widely acknowledged Global Reporting Initiative (GRI) guidelines are used as the disclosure index checklist. Findings-The results reveal that the overall labour disclosure level increases from 21.84% in 2007 to 30.52% in 2010. The levels of four of the five specific labour disclosures also increase with Employment being the exception. The results further show that the Indonesian government does not influence the increase in the levels of the overall labour disclosure or the four categories showing increased disclosure but, surprisingly, does significantly affect the decrease in the level of the Employment category. Research limitations/implications-It is implied that the government is at best ambiguous given that, on one side, the government regulates all corporate social responsibility (CSR) activities and reporting but appears to coercively pressure companies to hide Employment specific issues. Practical implications-It is implied that Indonesian companies need to have 'strong and influential' independent commissioners on the boards to counter any possible pressures from the government resulting in lower disclosure levels. Originality/value-This paper provides insights into the 'journey' of labour-related CSR disclosure practices in Indonesia and contributes to the literature by testing one specific variant of isomorphic institutional theory namely coercive isomorphism.

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Section: Discussionmentioning

confidence: 99%

The Indonesian Government’s coercive pressure on labour disclosures

Cahaya

Porter

Tower

et al. 2015

Sustainability Accounting, Management and Policy Journal

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“…It stipulated higher severance pay and fixed‐term contracts for jobs of a temporary or seasonal nature. South Korea enacted the Fixed‐Term and Part‐Time Worker Protection Act in 2007, which required employers to convert fixed‐term contracts to indefinite term contracts after two years of employment (Caraway ). In contrast, some countries have adjusted labor law to be more flexible.…”

Section: Labor Contract Law Development In Chinamentioning

confidence: 99%

The Effects of the Labor Contract Law on the Chinese Labor Market

Fan¹,

Ge²,

Jing³

2013

J Empirical Legal Studies

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This article uses a micro-level data set to investigate the effect of China's Labor Contract Law, implemented in 2008, on the Chinese labor market. Our empirical evidence shows that the labor law reform significantly improved employee benefit. This effect is greater for stateowned enterprises, for large and domestic firms, and for regions with high unionization and high skill intensity. The Labor Contract Law significantly reduces the wage elasticity of labor demand, especially in highly unionized and skill-intensive industries. However, this effect is less significant in globalized industries and female-employee-intensive industries.

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“…However, convergence oftentimes stops at the regulatory framework, with most empirical studies showing that suppliers' actual compliance with global labor standards lags far behind official national regulations (Stallings, 2010;Caraway, 2010).…”

Section: Global Influencesmentioning

confidence: 99%

“…Global-global interactions cause significant strain for local suppliers because global advocates of a competitive market and global advocates of social standards frequently have conflicting demands. On a public regulatory level, Stallings (2010) and Caraway (2010) show that global pressure for labor standards exists in parallel with global pressure for the flexibility of labor markets, and these pressures partially contradict each other. On a private regulatory level, scientists and practitioners warn that compliance with international labor standards is hampered by lead firms' demands for decreases in price and lead time (Oka, 2010;Lund-Thomsen et al, 2012).…”

Section: Processing Of Interacting Global and Local Influencesmentioning

confidence: 99%

Crossvergence of socially (ir)responsible employment practices in supplier firms

Holzberg¹

2019

cpoib

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Purpose The purpose of this paper is to introduce the notion of crossvergence from international human resource management (IHRM) as a conceptual lens for understanding and analyzing the formation of socially (ir)responsible employment practices in supplier firms in global production networks (GPNs). The crossvergence perspective can particularly contribute to understanding how the agency of suppliers is influenced by the interaction of global–local dynamics. Design/methodology/approach The paper illustrates how the formation of socially (ir)responsible employment practices can be understood as a process of crossvergence. Subsequently, it reviews and structures insights from GPN and IHRM literature to detail the process. Findings The paper underscores the complicated role of suppliers in ensuring decent work in GPNs. Suppliers face a multitude of global and local interacting, and partially conflicting, demands. They process these demands as active agents and need to develop suitable employment practices in response. Originality/value The paper supports the nascent discourse on supplier agency in forming socially responsible employment practices. It connects different streams of literature to illuminate the perspective of suppliers, introduces IHRM insights to the debate and offers conceptual guidance for analyzing interacting global and local pressures on suppliers.

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Labor Standards and Labor Market Flexibility in East Asia

Cited by 33 publications

References 30 publications

The Indonesian Government’s coercive pressure on labour disclosures

The Indonesian Government’s coercive pressure on labour disclosures

The Effects of the Labor Contract Law on the Chinese Labor Market

Crossvergence of socially (ir)responsible employment practices in supplier firms

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