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Poor Transparency Hampers Progress in Improving Labor Conditions – Sourcing Journal

In our last column, we reviewed extant research that indicated no sustainable progress in labor conditions in global supply chains, particularly with regard to freedom of association, wages and other standards. So what explains the lack of progress? There are several horses in the race. The first horse is “Wrong Solution.” Private regulation that allows brands to police their own labor practices is the wrong solution. It avoids or crowds out national regulation, as wells as organized workers and bargaining. The best solution gets national governments to write and act out good labor laws. The second horse is “Not Trying Hard Enough.” Companies are not serious about private regulation. Many adopt policies but do not implement them; in academic circles we call this ‘symbolic adoption’ or ‘policy-practice decoupling.’

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