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.
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Organizational Behavior and Human Resource Management
- Management of Technology and Innovation