The Electronic Industry Code of Conduct: Private Governance in a Competitive and Contested Global Production Network

Abstract

Manufacturing activities in the electronics industry are organized in complex global production networks (GPNs) led by a variety of branded firms. Increasingly, considerations related to private governance and the use of codes of conduct and standards have emerged as important to the management and coordination of GPNs. An example is the Electronic Industry Code of Conduct (EICC), which is an attempt by the electronics industry to harmonize social, environmental and other conditions throughout its supply chain. This paper describes how the EICC came into being, and how inter-firm and non-firm relations and dynamics shape GPN governance outcomes. It shows resource constraints, changing power dynamics among firms and contestation by external stakeholders to be important factors influencing the implementation of private governance measures. Findings from interviews conducted with EICC members, including manufacturing sites located in Penang, Malaysia, and external stakeholders inform the discussion.

Fragmented or cohesive transnational private regulation of sustainability standards? A comparative study

“…CSOs so far have declined, claiming that the EICC offers too little influence on decisionmaking. Observers also note an explicit anti‐union sentiment among some EICC participants (makeITfair and GoodElectronics ; Raj‐Reichert ).…”

“…In most of these countries, labor and environmental standard enforcement is weak. Since the 2000s, pressure has grown on PC and laptop brands to safeguard working conditions in computer manufacturing and in the management of hazardous materials (Raj‐Reichert ).…”

“…The EICC initially focused on labor standards exclusively, but now also incorporates environmental aspects of manufacturing. Key drivers in the development of the EICC were large multinationals like HP, Dell, and IBM (Raj‐Reichert ) . Compared to clothing, working conditions in IT‐electronics factories in China initially received less public attention.…”

Governing health and safety at lower tiers of the computer industry global value chain

“…To help drive governance down the GVC, HP monitored first tier suppliers and trained some of them to govern and audit their own (second tier) suppliers. Thus, within the HP supply chain, the onus was on first tier suppliers to push the EICC down to second tier suppliers (Raj‐Reichert ).…”

“…; Lund‐Thomsen & Nadvi ; Ponte et al . ; Raj‐Reichert ; Locke ). Much of this research illustrates how labor compliance can shape governance ties between lead firms and first tier suppliers.…”