Do workers benefit from ethical trade? Assessing codes of labour practice in global production systems

Abstract

Corporate codes of labour practice have proliferated as a result of trade union and ngo campaigns against poor labour conditions in global production. Analysis of global production systems highlights the complexity of commercial networks and the wider social and institutional environment in which codes operate. It posits tensions between a corporate approach focusing on compliance with outcome standards and a civil society approach focusing on process rights. A detailed study of codes operated by companies in the UK Ethical Trading Initiative finds that codes have led to improvements in outcome standards but little change in process rights for workers. The authors conclude that corporate codes have a role to play in improving labour standards, but are currently doing little to challenge existing commercial practices or embedded social relations that underpin poor labour standards in global production systems.