How to Make Better Factories

Explaining Variance in Labour Standard Compliance Across Asia's Garment Economies

Master's Thesis , 2009 , 72 Pages , Grade: 1,0

Politics - Topic: Development Politics

How can new governance arrangements such as public-private partnerships contribute to business regulation in developing economies? More specifically, which governance instruments are best suited to make domestic for-profit actors comply with social standards? Seeking to address these broader questions, this study opens with a puzzle of varying degrees of labour standard compliance across Asia’s garment economies. Whereas problems with labour standards persist throughout the region, evidence points to improved compliance in Cambodia’s garment sector. This improvement is supposed to be due to an innovative policy project called Better Factories Cambodia, which involves public and private actors from different levels to induce compliance in an extremely difficult environment. Drawing on compliance theory, the study advances the hypothesis that this success is due to a combination of management and enforcement instruments. A comparison of Cambodia’s and Bangladesh’s garment sectors and a process analysis of the causal mechanisms in operation verify this complementary-compliance-hypothesis. Thereby, the study lays a foundation for future theory-guided research on business regulation through new modes of governance.

Inhaltsverzeichnis (Table of Contents)

• 1. INTRODUCTION
• 1.1 Subject and Research Question
• 1.2 Methodology and Collection of Data
• 1.3 Research Objectives and Structure
• 1.4 Review of Literature
• 1.4.1 New Modes of Governance
• 1.4.2 Compliance Theory
• 1.4.3 Labour Standards and Business Regulation in Developing Economies
• 2. THE DEPENDENT AND THE INDEPENDENT VARIABLES
• 2.1 Dependent Variable: Compliance with Labour Standards
• 2.2 Independent Variable: Mode of Governance
• 2.3 Alternative Explanations and Logic of Comparison
• 3. VARIATION IN LABOUR STANDARD COMPLIANCE: EVIDENCE FROM CAMBODIA AND BANGLADESH
• 3.1 The Global Garment Industry
• 3.2 Improved Compliance in Cambodia
• 3.3 Persistence of Non-Compliance in Bangladesh
• 4. THEORETICAL FRAMEWORK: COMPLIANCE THEORY
• 4.1 The Enforcement School
• 4.2 The Management School
• 4.3 Complementary-Compliance-Hypothesis
• 4.4 Operationalization
• 5. HOW TO MAKE BETTER FACTORIES?
• 5.1 The US-Cambodian Trade Agreement on Textile and Apparel
• 5.2 Eliminating Free-Riding: A Necessary Condition
• 5.3 Better Factories by Enforcement
• 5.3.1 Monitoring: Data about Non-Compliance
• 5.3.2 Sanctioning Non-Compliance
• 5.3.2.1 Phase 1 (2001-2005): Hegemonic Enforcement
• 5.3.2.2 Phase 2 (2005-2008): Transnational Market-Driven Enforcement and Increased Capability of Local Unions
• 5.3.3 Reduce of Intentional Non-Compliance
• 5.4 Better Factories by Management
• 5.4.1 Monitoring: Data about Capacity Deficits
• 5.4.2 Capacity Building
• 5.4.2.1 General Capacity Building
• 5.4.2.2 Customized Capacity Building
• 5.4.3 Reducing Non-Compliance Due to Capacity Deficits
• 6. CONCLUSION
• 6.1 Summary of Empirical Findings
• 6.2 Outlook on Future Research
• 6.3 BFC - A Model for Regulating For-Profit Actors in Developing Economies beyond Cambodia and the Garment Industry?

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This study aims to explore the effectiveness of public-private partnerships in regulating businesses in developing countries, focusing specifically on the garment industry in Asia. The study investigates why compliance with labor standards varies across different garment economies in the region and aims to understand the role of different governance mechanisms in achieving improved compliance. Key themes explored in the text include: * **Labor Standard Compliance:** Analyzing the extent to which businesses in Asian garment economies adhere to labor standards. * **Public-Private Partnerships:** Examining the effectiveness of collaborative efforts between governments and private entities in promoting labor standards. * **Compliance Theory:** Applying compliance theory to understand the factors that influence businesses to comply with labor regulations. * **Case Studies:** Comparing the garment sectors in Cambodia and Bangladesh to illustrate the impact of different governance approaches on compliance. * **Governance Instruments:** Identifying and analyzing specific mechanisms used by public-private partnerships to promote compliance.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1 provides an introduction to the research topic, outlining the subject matter and research question. It also discusses the methodology and data collection process, as well as the objectives and structure of the study. The chapter concludes with a review of relevant literature, focusing on new modes of governance, compliance theory, and the role of business regulation in developing countries.
• Chapter 2 defines the dependent and independent variables of the study, which are compliance with labor standards and the mode of governance, respectively. It further discusses alternative explanations for variation in compliance and outlines the logic of comparison used in the study.
• Chapter 3 presents evidence from Cambodia and Bangladesh, highlighting the varying degrees of labor standard compliance within the global garment industry. It examines the factors contributing to improved compliance in Cambodia's garment sector, as well as the persistent challenges in Bangladesh.
• Chapter 4 delves into the theoretical framework of compliance theory, exploring two key schools of thought: the enforcement school and the management school. It proposes a complementary-compliance-hypothesis, arguing that a combination of both enforcement and management instruments is crucial for achieving sustainable compliance.
• Chapter 5 examines the "Better Factories Cambodia" program, a public-private partnership aimed at improving labor standards in the Cambodian garment industry. It analyzes how the program utilizes both enforcement and management approaches to promote compliance, discussing the role of monitoring, sanctioning, and capacity building.

Schlüsselwörter (Keywords)

This research focuses on the regulation of businesses in developing countries, specifically in the context of the garment industry in Asia. Key themes explored include labor standard compliance, public-private partnerships, compliance theory, governance instruments, and the comparative analysis of Cambodia and Bangladesh. The study examines the effectiveness of different governance mechanisms in promoting compliance with labor standards and offers insights into the role of enforcement and management approaches in achieving sustainable change.

• College: Free University of Berlin (Otto-Suhr Institut für Politikwissenschaft)
• Grade: 1,0
• Author: Philip Schleifer (Author)
• Publication Year: 2009
• Pages: 72
• Catalog Number: V170725
• ISBN (eBook): 9783640898688
• ISBN (Book): 9783640898657
• Language: English
• Tags: Public Private Partnership, Private Governance, Cambodia, Apparel, Labour Standards, Social Standards, Private Regulation, Compliance, Garments, Governance, Bangladesh, ILO, Codes of Conduct, CSR, Verhaltenkodizes, Private Regulierung, Arbeitsstandards, Sozialstandards, Kambodscha, Bangladesch, Bekleidungsindustrie, Internationale Arbeitsorganisation, Selbstregulierung