Addressing Governance Gaps in Global Value Chains: Introducing a Systematic Typology
Journal of Business Ethics 170 (4):657-672 (2019)
Abstract
Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap.My notes
Similar books and articles
Addressing Governance Gaps in Global Value Chains: Introducing a Systematic Typology.Stephanie Schrage & Dirk Ulrich Gilbert - 2021 - Journal of Business Ethics 170 (4):657-672.
Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters.Gary Gereffi & Joonkoo Lee - 2016 - Journal of Business Ethics 133 (1):25-38.
No-Size-Fits-All: Collaborative Governance as an Alternative for Addressing Labour Issues in Global Supply Chains.Sun Hye Lee, Kamel Mellahi, Michael J. Mol & Vijay Pereira - 2020 - Journal of Business Ethics 162 (2):291-305.
Institutionalizing global governance: the role of the United Nations Global Compact.Andreas Rasche & Dirk Ulrich Gilbert - 2012 - Business Ethics, the Environment and Responsibility 21 (1):100-114.
Institutionalizing global governance: the role of the United Nations Global Compact.Dirk Ulrich Gilbert Andreas Rasche - 2012 - Business Ethics, the Environment and Responsibility 21 (1):100-114.
Networked CSR Governance: A Whole Network Approach to Meta-Governance.Sandra Waddock & Laura Albareda - 2018 - Business and Society 57 (4):636-675.
Corporate governance models in emerging markets: The case of india.Silke Machold & Ajit Kumar Vasudevan - 2004 - International Journal of Business Governance and Ethics 1 (1):56-77.
Regulatory Governance: Rules, Resistance and Responsibility.Poul F. Kjaer & Antje Vetterlein - 2018 - Contemporary Politics 24 (5).
Corporate Governance Research Opportunities in Nigeria: A National Development Issue.Rosemary O. Obasi - 2019 - International Letters of Social and Humanistic Sciences 87:13-22.
Sustainable Supply Chains: Governance Mechanisms to Greening Suppliers. [REVIEW]Cristina Gimenez & Vicenta Sierra - 2013 - Journal of Business Ethics 116 (1):189-203.
State Power: Rethinking the Role of the State in Political Corporate Social Responsibility.Judith Schrempf-Stirling - 2018 - Journal of Business Ethics 150 (1):1-14.
Corporate Social Responsibility and Societal Governance: Lessons from Transparency in the Oil and Gas Sector. [REVIEW]Jędrzej George Frynas - 2010 - Journal of Business Ethics 93 (S2):163 - 179.
Democratizing Corporate Governance: Compensating for the Democratic Deficit of Corporate Political Activity and Corporate Citizenship.Andreas Scherer, Dorothée Baumann-Pauly & Anselm Schneider - 2013 - Business and Society 52 (3):473-514.
Corporate Governance vs. Corporate Environmental Governance: Complementary or Separate Drivers of Environmental Performance?Frederik Dahlmann & Stephen Brammer - 2013 - Proceedings of the International Association for Business and Society 24:153-162.
Analytics
Added to PP
2019-12-21
Downloads
2 (#1,401,332)
6 months
1 (#448,894)
2019-12-21
Downloads
2 (#1,401,332)
6 months
1 (#448,894)
Historical graph of downloads
Citations of this work
Integrative Resource Model of Workplace Inclusion for Reduced Inequality: Conservation of Resources Perspective.Yuka Fujimoto, Ahmed Ferdous & Faisal Wali - forthcoming - Journal of Business Ethics:1-23.
Extending Social Sustainability to Suppliers: The Role of GVC Governance Strategies and Supplier Country Institutions.Sarah Castaldi, Miriam M. Wilhelm, Sjoerd Beugelsdijk & Taco van der Vaart - forthcoming - Journal of Business Ethics:1-24.
References found in this work
Between Facts and Norms: Contributions to a Discourse Theory of Law and Democracy.Jürgen Habermas (ed.) - 1996 - Polity.
Between Facts and Norms: Contributions to a Discourse Theory of Law and Democracy.Frank I. Michelman & Jurgen Habermas - 1996 - Journal of Philosophy 93 (6):307.
Responsibility and global justice: A social connection model.Iris Marion Young - 2006 - Social Philosophy and Policy 23 (1):102-130.
Corporate Legitimacy as Deliberation: A Communicative Framework.Guido Palazzo & Andreas Georg Scherer - 2006 - Journal of Business Ethics 66 (1):71-88.