Shifting the perspective on labor exploitation: Non-commercial organizations' contribution toward supply chain governance

Abstract

Labor exploitation persists within global supply chains regardless of governmental legislation, private governance mechanisms, and increasing consumer demands. Notably, non-commercial organizations have been lauded as potential facilitators of improvements in labor standards through their capability to influence supply chain actors. Through an analysis of 45 semi-structured interviews across three cases, this research provides rich evidence of non-commercial organizations' contribution to governance linked to the persistence of labor exploitation. The findings reveal that the constraining factors of change capabilities of non-commercial organizations are (1) recognition of their limitations to enact improvements when their organizations are positioned in a heterogeneous supply chain context, (2) lack of a level playing field that provides a fair competitive environment to improve labor standards, and (3) labor deregulation. Similarly, the complex situation faced by non-commercial organizations created dilemmas that hindered progress in addressing labor exploitation. Governance inertia is an overarching issue that circumscribes the ambitions of non-commercial organizations to enhance labor standards. This research emphasizes the issues and challenges that constrain these uniquely placed organizations in facilitating positive change in global apparel supply chains.