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Begin New Search Topic Labor Issues Author Richard M. Locke

1. Does Lean Capability Building Improve Labor Standards? Evidence from the Nike Supply Chain

Author:
Greg Distelhorst, Jens Hainmueller, and Richard M. Locke
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
Watson Institute for International and Public Affairs at Brown University
Abstract:
This paper offers the first empirical analysis of the introduction of lean manufacturing as a "capability building" strategy for improving labor standards in global supply chains. Buyer interventions to improve supplier management systems have been proposed to augment existing, and widely deemed insufficient, private regulation of labor standards, but these claims have yet to be systematically investigated. We examine Nike Inc.'s multiyear effort to promote lean manufacturing and its associated high-performance work systems in its apparel supply base across eleven developing countries. Adoption of lean manufacturing techniques produces a 15 percentage point reduction in serious labor violations, an effect that is robust to alternative specifications and an examination of pre-trends in the treatment group. Our finding contradicts previous suggestions that pressing suppliers to adopt process improvements has deleterious effects on labor conditions and highlights the importance of relational contracting and commitment-oriented approaches to improving labor standards in the developing world.
Topic:
Development, Economics, International Political Economy, International Trade and Finance, and Labor Issues
Political Geography:
India

2. Parallel Paths to Enforcement: Private Compliance, Public Regulation, and Labor Standards in the Brazilian Sugar Sector

Author:
Richard M. Locke and Salo V. Coslovsky
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
Watson Institute for International and Public Affairs at Brown University
Abstract:
In recent years, global corporations and national governments have been enacting a growing number of codes of conduct and public regulations to combat dangerous and degrading work conditions in global supply chains. At the receiving end of this activity, local producers must contend with multiple regulatory regimes, but it is unclear how these regimes interact and what results, if any, they produce. This paper examines this dynamic in the sugar sector in Brazil. It finds that although private and public agents rarely communicate, let alone coordinate with one another they nevertheless reinforce each other's actions. Public regulators use their legal powers to outlaw extreme forms of outsourcing. Private auditors use the trust they command as company insiders to instigate a process of workplace transformation that facilitates compliance. Together, their parallel actions block the low road and guide targeted firms to a higher road in which improved labor standards are not only possible but even desirable.
Topic:
Agriculture, Human Rights, International Law, International Trade and Finance, and Labor Issues
Political Geography:
Latin America