Although the characteristics and advantages of interorganizational governance models based on extensive collaboration are well established in the literature, inquiry has only recently extended to sustainable supply chain management, highlighting the potential benefits of combining the integration of social and environmental issues concerning the supply chain with governance models based on joint decision making and extensive cooperation. Yet, firms still differ in both the pervasiveness of such collaborative approaches along the value chain and the extent to which sustainability issues (...) are addressed to the advantage of all parties involved. In an attempt to predict variety in the governance models related to sustainability along the value chain, we propose a theoretical model that identifies and frames four sustainable supply chain governance (SSCG) models, resulting from combinations of supply chain network density and centrality of the focal organizations. We show how, as centrality increases, firms are able to exert influence over their network, coordinating integrated approaches along the value chain. Moreover, as high centrality combines with increasing interconnectedness of the actors within a supply chain network, instrumental approaches are progressively replaced by more relational attitudes aimed at joint value creation among partners. Conditions for SSCG models' success and the main benefits gained by firms in different structural contexts are also discussed. (shrink)

Regional and local value creation is seen as one solution for reducing the environmental impact of the agri‐food system. The point of reference for this research is the powerless position of small actors in agri‐food chains. This paper gives insights into the motivation of small‐scale producers in developed countries to exit national and export markets and to opt for a sustainability orientation. Specifically, we explore how the powerlessness of small actors in global value chains may fuel (...) the formation of regional and local value chains. Through a regional case study, we map the dairy value system and identify three different value chain structures in the Northern German dairy industry. Then, we illustrate how some small (organic) raw milk producers have changed their position in the value chain and bargaining strength by following different upgrading strategies. Their increase in bargaining power comes with efficiency losses and increased risk. Implications for small‐scale producers and society are discussed and brought together in a framework that demonstrates the drivers and challenges for sustainability‐oriented small‐scale agricultural producers to achieve a stable and competitive position within the market. (shrink)

The growth of global value chains (GVCs) and the emergence of novel forms of value chain governance pose two questions for normative business ethics. First, how should we conceptualize the relationships between members of a GVC? Second, what ethical implications follow from these relationships, both with respect to interactions between GVC members and with respect to achieving broader transnational governance goals? We address these questions by examining the emergence of transnational eco-labeling as an increasingly prominent form of (...) GVC governance that is redefining the relationship between nominally independent firms. On the first question, we argue that GVCs occupy a middle ground between intrafirm and interfirm transactions, thereby posing a challenge to theoretical frameworks that attempt to apply ethical standards based on transaction types. On the second question, we argue that this unique institutional status leads to a range of novel ethical considerations and dilemmas for GVC members. Lead firms, their suppliers, and third-party standard-setters all confront new ethical quandaries when third-party eco-labeling is introduced to a GVC. The nature of these quandaries means that, while GVCs may be well-positioned to serve as instruments of transnational governance, they are frequently not well-oriented to do so. Our analysis marks an initial attempt to map the ethical considerations that apply to members of a GVC, and in doing so, places the literature on normative business ethics and transnational governance in a closer conversation. (shrink)

What is the responsibility of multinational enterprises in international value chain networks in countries with inadequate institutions? In this article, we present an ethical framework that allows for evaluation of institutions at the macro, mezzo, and micro levels. This framework is used to analyze the case of Telenor in Bangladesh. Telenor is a telecommunications company based in Norway. It is the majority owner (62%) in Grameenphone in Bangladesh. The minority owner is Grameen Telecom, which is part of the Grameen (...) group created by the pioneer of micro finance, Nobel Prize winner Dr. Mohammad Yunus. The case of Telenor in Bangladesh is one of many examples of international value chain networks that span different jurisdictions. The case focuses on relevant issues in the value chain networks: the institutions in Norway and Bangladesh, the owners, suppliers, and customers. We highlight the responses made by the major actors in the value chain, and conclude the article by analyzing the responsibility, or "ability to respond" of these major actors. (shrink)

Purpose This study aims to explore ways to enhance competitiveness of commercial lighting industry because of the growing digitally connected stakeholder community. Positive responses from stakeholders to recurring business interactions help build trust and formation of a community; value chains being one form of such trusted community. Because of the increasing trust, the effort to search right value chain partners diminishes, business interactions become less formal and transaction costs are reduced, thus increasing the competitiveness. Design/methodology/approach In this (...) research, a cross-sectional study of commercial lighting industry domain in Australia was carried out, focusing on two states: New South Wales and Victoria. Based on the findings, an approach and a supporting platform to enhance competitiveness of commercial lighting industry were synthesized. Findings Based on the findings from the study, formation of such value chains, namely, “Entrusted Circles” and its two types of formations, fully and partial, were observed. Their further growth was hindered by high transaction costs. To reduce this transaction cost, this paper proposes a platform to create dynamic value chains, among stakeholders of commercial lighting industry, making use of growing digital connectivity leading toward agile formation of Entrusted Circles to enhance competitiveness. Research limitations/implications This study focuses on the commercial lighting industry in Australia, which is not tested in any other domain to investigate its wider applicability. However, it is conceptually applicable to be used in industries with compliance and standard procedures. Originality/value This paper shows how to identify Entrusted Circles and build, support and sustain such relationships among value chain partners to successfully conduct business transactions in a dynamic value chain. (shrink)

Nachhaltig gemeinsame Wertschöpfung als Offensivkonzept für profitables Wachstum in Unternehmen und Gesellschaft Die Fragestellung, wie die Verantwortung eines Unternehmens (Corporate Social Responsibility) konsistent bzw. mit Integrität in Kerngeschäft und Organisation verankert werden) kann, beherrscht zunehmend die öffentliche Diskussion. Im Rahmen dieser Diskussion, bietet das Konzept "Nachhaltig gemeinsame Wertschöpfung" einen Managementansatz an, der auf dem Verständnis aufbaut, dass Nachhaltigkeit nur dann im Kerngeschäft eines Unternehmens verankert ist, wenn es in Produkten und Wertschöpfungskette gleichzeitig berücksichtigt wird. Nachhaltigkeit und sozialer Mehrwert für alle (...) Beteiligten sind keine Randthemen mehr, sondern sind Chance über Produkte und die Wertschöpfungskette einen Beitrag zu stiften. Nachhaltig gemeinsame Wertschöpfung bildet hier die Brücke zwischen dem Wunsch nach mehr Nachhaltigkeit und der konkreten Umsetzung im Kerngeschäft.Um den negativen Konsequenzen eines ungebremsten Wirtschaftens und den sich daraus ergebenden Rahmenbedingungen zu begegnen, bietet nachhaltig gemeinsame Wertschöpfung ein Offensivkonzept das profitables Wachstum in ökonomischer, ökologischer und gesellschaftlicher Dimension ermöglicht. Neben dem konzeptionellen Rahmen, wird anhand vielfacher Beispiele aus der unternehmerischen Praxis beschrieben, wie ein Unternehmen nachhaltig gemeinsame Wertschöpfung erfolgreich umsetzen kann. Der Inhalt Integriertes Konzept zur Verankerung von CSR/Nachhaltigkeit im Kerngeschäft Beschreibung der relevanten Bausteine und Umsetzungsaktivitäten zur Schaffung von ökonomischen, ökologischen und gesellschaftlichem Mehrwert 11 Fallstudien und Praxisartikel, die Bedeutung und Umsetzung nachhaltiger gemeinsamer Wertschöpfung beschreiben Die Zielgruppen Vorstand und Geschäftsführung von Unternehmen mit global verteilter Wertschöpfung Verantwortliche für Nachhaltigkeit, Forschung & Entwicklung, Wertschöpfungskette Öffentliche Einrichtungen, NGO und Regierungsorganisationen Der Herausgeber Michael D'heur, ist Gründer und Geschäftsführer von shared.value.chain, einer Denkfabrik und Managementberatung für nachhaltig gemeinsame Wertschöpfung in Garching (München). Die Reihe "In der CSR-Managementreihe werden bestehende Ansätze durch neue Ideen und Konzepte ergänzt, um so dem Paradigma eines nachhaltigen Managements gerecht zu werden. Damit soll ein neuer Standard in der unternehmerischen Praxis sowie Managementliteratur gesetzt werden." (René Schmidpeter). (shrink)

The significance of private standards and associated local level initiatives in agri-food value chains are increasingly recognised. However whilst issues related to compliance and impact at the smallholder or worker level have frequently been analysed, the governance implications in terms of how private standards affect national level institutions, public, private and non-governmental, have had less attention. This article applies an extended value chain framework for critical analysis of Private Standards Initiatives (PSIs) in agrifood chains, drawing on (...) primary research on PSIs operating in Kenyan horticulture (Horticulture Ethical Business Initiative and KenyaGAP). The paper explores the legislative, executive and judicial aspects of governance in these southern PSIs highlighting how different stakeholders shape debates and act with agency. It is argued that governance is exercised ‘beyond the vertical’ in that one can identify wider horizontal processes of governance, including how the scope of key debates is constructed (especially in legislative governance) but analysis of executive governance emphasises the dominant role of the lead buyers. (shrink)

There has been tremendous growth in the sales of certified fair trade products since the introduction of the first of these goods in the Netherlands in 1988. Many would argue that this rapid growth has been due in large part to the increasing involvement of corporations. Still, participation by corporations in fair trade has not been welcomed by all. The basic point of contention is that, while corporate participation has the potential to rapidly extend the market for fair trade goods, (...) it threatens key aspects of what many see as the original vision of fair trade – most notably a primary concern for the plight of small producers and the goal of developing an alternative approach to trade and development – and may even be undermining its long-term survival. The primary purpose of this article is to explore the normative issues involved in corporate participation in fair trade. In order to do that, however, it first provides a positive analysis of how corporations are actually involved in fair trade. In order to achieve both of these ends, the article draws upon global value chain analysis. (shrink)

The globalization of production and trade has contributed to the rise in complex global value chains where the reach of state regulation is limited. As an alternative, private regulation, developed and administered by companies, industry associations, and nongovernmental organizations, has emerged to safeguard economic, environmental, and social sustainability in producer countries and along the value chain. The academic literature on private regulation in global value chains has grown over the last decade, but currently few major (...) reviews of the research have been undertaken. This paper examines peer-reviewed research in the relevant disciplines published in academic journals up to December 2011. Our goal is to identify and classify the topics and theories in the global value chain literature. We conclude that the number of articles explicitly examining private regulation, in a global value chain context, is relatively small when considering the importance and growth of these chains in the world’s economy. We also conclude that agriculture, forestry, and apparel manufacturing are the most often studied economic sectors; in contrast, other sectors, such as the information, communication and technology, with their complex global value chains, and often problematic environmental and social conditions, are understudied. (shrink)

India is a major producer and exporter of hand-knotted carpets to the world since the beginning of the British rule over India. Majority of the hand-knotted carpets exported from India are produced in the Bhadohi-Mirzapur region, popularly called as the carpet belt of India. Given deplorable working conditions and very high prevalence of child labour in the cluster, in the mid-1990, four social labels were implemented to improve the labour standards, in addition to slew of labour laws implemented by the (...) state of India. The objective of this study is to explore the prevailing labour standards and effectiveness of social labels in improving labour standards in the hand-knotted carpet manufacturing cluster. This study found that even after the implementation of social labels and slew of labour laws, there had been barely any improvement in the working conditions of carpet workers. The workers continued to be adversely incorporated in the carpet commodity chain. However, realising that there is very little scope of social upgrading in this occupation, many carpet workers have shifted to other occupations. But this study found very few child workers in carpet manufactories in the cluster. (shrink)

The growth of global value chains (GVCs) and the emergence of novel forms of value chain governance pose two questions for normative business ethics. First, how should we conceptualize the relationships between members of a GVC? Second, what ethical implications follow from these relationships, both with respect to interactions between GVC members and with respect to achieving broader transnational governance goals? We address these questions by examining the emergence of transnational eco‐labeling as an increasingly prominent form of (...) GVC governance that is redefining the relationship between nominally independent firms. On the first question, we argue that GVCs occupy a middle ground between intrafirm and interfirm transactions, thereby posing a challenge to theoretical frameworks that attempt to apply ethical standards based on transaction types. On the second question, we argue that this unique institutional status leads to a range of novel ethical considerations and dilemmas for GVC members. Lead firms, their suppliers, and third‐party standard‐setters all confront new ethical quandaries when third‐party eco‐labeling is introduced to a GVC. The nature of these quandaries means that, while GVCs may be well‐positioned to serve as instruments of transnational governance, they are frequently not well‐oriented to do so. Our analysis marks an initial attempt to map the ethical considerations that apply to members of a GVC, and in doing so, places the literature on normative business ethics and transnational governance in a closer conversation. (shrink)

Attention has become increasingly focused in recent years on the role agri-food system transformations have played in driving the global diet-related chronic disease burden. Identifying the role played by the food-consuming industries (predominantly large manufacturers, processors, distributors, and retailers) in particular, and identifying possibilities to facilitate healthier diets through intervening in these industries, have been identified as a research priority. This paper explores the potential for one promising analytic framework—the nutrition-oriented value chain approach—to contribute to this area, drawing on (...) recent insights from the global value chain (GVC) literature to develop an institutionally-enriched approach. The research focused on a canned deciduous fruit value chain linking growers, processors, and retailers in South Africa and Australia. Findings reveal the multiple drivers which have converged to shape this value chain over time, and the key actors which are influencing product availability, composition, price, and promotion within this sector. With its emphasis on identifying implications for end-consumption, rather than economic outcomes within the chain, nutrition-oriented value chain research represents a significant shift in focus for the GVC framework. Therefore, an immediate opportunity for further research is to extend the analytic framework to primary research on end-consumption behaviours. (shrink)

This paper mainly analyzes the current situation of e-commerce in domestic SMEs and points out that there are limited initial investment and difficulty in financing in China’s SMEs; e-commerce control is not scientific; e-commerce personnel of SMEs are not of high quality, in the case of improper setting of the e-commerce sector and shortage of talents, rigid management model, and outdated management concepts. By using the loss function and the value chain management theory of the deep learning in the (...) stationary wavelet domain residual learning model, the e-commerce model of SMEs is newly constructed, and the e-commerce department as the core department of the enterprise is proposed. By training the optimal parameters of the deep residual network and comparing the results with other models, the method of this paper has a good effect against the sample. The original loss function based on the residual learning model deep learning is modified to solve the original model fuzzy problem, which improves the effect and has good robustness. Finally, based on the wavelet residual depth residual evaluation method, this paper evaluates the application effect of this model and proposes relevant suggestions for improving this model, including rationalizing and perfecting the external value chain coordination mechanism, establishing the e-commerce value chain sharing center, and promoting integration of e-commerce business, strengthening measures and recommendations in various aspects of e-commerce information construction. At last, taking the business activities of a company as an example, applying the theory described in this paper to specific practice proves the feasibility and practical value of the theory. (shrink)

To address substandard working conditions in global value chains, companies have adopted private regulatory systems governing worker rights. Scholars agree that without onsite factory audits, this private regulation has limited impact at the point of production. Companies, however, audit only a subset of their suppliers, severely restricting their private regulatory attempts. Despite the significance of the placement of suppliers inside or outside firms’ “responsibility boundaries” and despite scholars’ having called for more research into how firms prioritize what suppliers (...) to audit, few, if any, systematic studies have examined the topic. This is problematic, as the placement of firms’ responsibility boundaries determines what suppliers and workers are included in firms’ private regulatory attempts. Based on a study of 12 Swedish firms and the theory of moral disengagement, this paper starts to fill this research gap by exploring how firms’ responsibility boundaries are placed. The paper illustrates how firms’ responsibility boundary placement is best described as a patchwork with firms defining and delimiting their responsibilities differently. The paper also demonstrates that three supplier types are particularly likely to be placed inside firms’ responsibility boundaries, while a fourth type is likely be placed outside. (shrink)

Pro-poor value chains intend to integrate smallholding farmers into high value markets to contribute to poverty alleviation and food security. Although income benefits of pro-poor value chains have been found, scant evidence exists regarding the potential for these markets to enhance food security. This study focuses on components of food access—dietary diversity, physical and financial access, and social acceptability—among households that participate in pro-poor value chains and non-participating households in the central highlands of (...) Peru where development interventions have created high value market niches for the native potato varieties that smallholding farmers have conserved for thousands of years. Using a mixed methods approach, this study assessed dietary diversity among households that participate and do not participate in pro-poor value chains, as well as their perceptions of their food access. Findings indicated that households that participate in value chains have higher dietary diversity than non-participating households but that these differences are likely due to pre-existing differences in socioeconomic status rather than any causal effect provided by value chains. The study also concluded that while participation in pro-poor value chains sometimes enhance the purchasing power of participating households, they may also weaken financial access, important for both purchasing food and travel to make those purchases. Community perspectives also indicated concerns with the acceptability of diets, which cannot likely be comprehensively addressed by pro-poor value chains. Collectively, the findings from this study cast doubt on the assumption that a linear flow exists between pro-poor value chains and enhanced food access. (shrink)

The continued advance of global value chains as the mode of production for an increasing number of goods and services has impacted considerably on the economies and societies both of the developed world and the emerging economies. Although there have been many efforts at reform there is evidence of unresolved dilemmas of human rights, environmental issues and ethical dilemmas in the operation of the global value chain. This paper focuses on the role and performance of Apple Inc (...) in the global value chain in Asia. Apple is the most successful corporation on earth measured in financial terms and yet has failed to find a solution to recurrent employment and environmental problems occurring in plants manufacturing Apple components. This analysis informs the current theoretical debate on the development of the global value chain and the continuing institutional failure that leaves employees vulnerable and the environment neglected. (shrink)

Morgan et al. examine the notion of corporate citizenship and suggest that for it to be effective companies need to minimize harm and maximize benefits through its activities and, in so doing, take account of and be responsive to a full range of stakeholders. Specifically, they call for a “next generation” approach to corporate citizenship that embeds structures, systems, processes and policies into and across the company’s value chain. We take this notion of corporate citizenship and apply it to (...) Privacy by Design concepts in a value chain model. Privacy by Design is comprised of Seven Foundational Principles, and as we develop the Privacy by Design Value Chain, those principles are incorporated. First, we examine the primary activities in the value chain and consider each of these seven principles, and then we extend the analysis to the support activities. Finally, we consider privacy implications and the challenges to be faced in supply chain and federated environments. Designing privacy into the value chain model is a practical, business view of organizational and privacy issues. This puts privacy where it belongs in an organization—everywhere personal information exists. We conclude that further research is needed to consider the internal stakeholders’ communications among the various departments within an organization with the goal of better communications and shared values, and we believe the value chain approach helps to further this research agenda. Also, federated environments necessitate that organizations can “trust” their third parties providers. Research and case studies are needed regarding how these organizations can create value and competitive advantages by voluntarily providing their customers with privacy practice compliance reports. For the most part, the future is bright for the protection of personal information because solutions, not problems are being proposed, researched, developed and implemented. (shrink)

Business Ethics, the Environment &Responsibility, Volume 31, Issue 4, Page 969-980, October 2022.

Recent studies have shed light on the emergence of Southern sustainability initiatives in commodity-based value chains. These initiatives position themselves as countering the exclusionary nature of many global multi-stakeholder initiatives, as critically analysed by previous studies. However, a common theoretical perspective on the inclusiveness of MSIs is still lacking. By drawing on the theory of regimes of engagement, we develop a theoretical framework which helps understanding the overt and subtle practices of including or excluding different stakeholders in MSIs. (...) We apply this framework to ‘Trustea’, an Indian MSI for sustainable tea production, to further investigate the ‘inclusiveness paradigm’ of Southern sustainability initiatives. Our findings highlight the complexity of stakeholder engagement across the different phases of Trustea’s development, from initiation and code development to formal launch and roll-out. We find that different types of engagement can exist in parallel. Justifiable engagement is expressed in the participating organisations’ reference to a shared common goal of Trustea, whereas familiar engagement is linked to the rootedness of the individuals involved in the Indian tea industry. Strategic engagement, in turn, comes to the fore through the strong emphasis on developing an Indian code for sustainable tea production and promoting adoption among tea growers. The importance of reaching this objective has led to the replication of exclusionary patterns also noted for global MSIs, as small-scale producers and other weak actors have been largely excluded from decision-making processes, despite informal efforts aimed at substitution of representation. (shrink)

We outline the drivers, main features, and conceptual underpinnings of the compliance paradigm. We then use a similar structure to investigate the drivers, main features, and conceptual underpinnings of the cooperative paradigm for working with CSR in global value chains. We argue that the measures proposed in the new cooperation paradigm are unlikely to alter power relationships in global value chains and bring about sustained improvements in workers’ conditions in developing country export industries. After that, we (...) provide a critical appraisal of the potential and limits of the cooperative paradigm, we summarize our findings, and we outline avenues for research: purchasing practices and labor standard noncompliance, CSR capacity building among local suppliers, and improved CSR monitoring by local resources in the developing world. (shrink)

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. (shrink)

The global segmentation of production and distribution has resulted in highly complex global value chains where vertical and horizontal dynamics are equally important in determining working conditions and providing points of leverage for labour. Borrowing notions of multi-level governance, we propose an analytical framework for describing and explaining success and failure of labour agency when attempting to improve working conditions along GVCs. Our starting point is that the high complexity of GVCs and the absence of a global overarching (...) authority have been balanced by the emergence of governance mechanisms of different forms and at different levels. An assessment of these mechanisms, which emphasize process over institutions, reveals how different types of interactions and interdependencies along GVCs impact on labour’s use of power. We argue that, in order to fully situate labour agency within governance debates, any future research agenda needs to be driven by micro-level bottom-up approaches. (shrink)

Uncertainties about how to achieve sustainable and reliable biobased value chains can be remedied by inclusion of local biomass producers. Such inclusion implies that the knowledge, values, interests and skills of these local producers are integrated into the set-up, design, development and associated distribution of risk and benefits of the specific value chain. To make sure that this inclusion is both fair and effective, capabilities of relevant actors need to be taken into account, i.e. the capabilities of (...) biomass producers and of companies and local governments. Building on these capabilities can lead to context sensitive design of biorefineries that allow for true inclusion of local stakeholders. We support this claim with reference to the case of sugarcane production in Jamaica. (shrink)

This paper uses WIOD data to calculate and analyze the dominant comparative advantage of Chinese manufacturing global value chain based on the WWZ method and empirically studies the influence of digitization on the competitiveness of manufacturing GVC. The main findings are as follows: The competitiveness of Chinese manufacturing GVC has been improved as a whole. The GVC competitiveness of different types of industries is quite different: GVC in middle- and low-knowledge-intensive industries have the highest competitiveness, while those with middle- (...) and high-knowledge-intensive industries have the lowest competitiveness and apparent shortboard industries. Digitization is conducive for enhancing the competitiveness of manufacturing GVC. In terms of industries, digitization has a significant positive effect on the GVC competitiveness of middle and high-knowledge-intensive industries but not on low knowledge ones. As for the sources of digital input, the positive effect is more outstanding. Also, it is more remarkable when it comes to the software and information technology service industry. As for the mechanism of action, labor productivity is an effective way to improve the manufacturing GVC competitiveness digitally. Finally, after a robustness test, the positive effect of the digital input remains robust. (shrink)

As the first empirical study of the nonlinear effects of digital business on global value chains (GVC), we provide insight into the nonlinear effects of digital business on the global value chain (GVC) values. We employ four indicators, including the value of online selling, sales through E-commerce, and customer relationship management (CRM) usage, to capture the prevalence of digital business in the economy. By testing a sample of 25 European countries that have been analyzed using various (...) econometric techniques over the period 2012–2019, our estimation results confirm that GVC values are a U-shaped function of digitalization. That is, an increase in digitalization pervasiveness initially induces more significant risks and uncertainties, hindering European countries from getting involved in or scale-up within the GVC. However, a rise in digitalization pervasiveness goes beyond a specific threshold, which facilitates GVC activities as more opportunities are created. Furthermore, our findings suggest that digital business contributes significantly to reducing the adverse influences of global uncertainty on the GVC values, while the marginal effects of digital business on GVC values become more pronounced in countries with the most advanced institutional structure. (shrink)

This article examines the development of the concept of the value chain from the linear to the virtual conception of the chain, through the evolution of the literature from Michael Porter’s writings of the mid 1990s to the theorists of e-business and e-commerce in the later 1990s I argue that Porter’s account employs white metaphors and that writings on the virtual value chain both extend the white metaphors of Porter’s linear chain, and suggest a pronouncedly metaphysical system of (...) thought — one which has correlates in areas of thought, including Renaissance Neo-Platonism, cybernetics and the discourse of cyberspace. I suggest that this offers a model of the advance of metaphor — of its usure, as described by Derrida in his White Mythology — and that this model can be synthesised with the views of Ricoeur about the evolution of metaphor towards symbolism. When we apply these ideas of Derrida and Ricoeur to the development of the White Metaphor of the linear chain towards a progressive symbolism, we can see a correlation between the complex causality inferred as a feature of the virtual chain and the cosmological affinities of Renaissance notions of causation. (shrink)

A prevailing focus of global value chain (GVC) analysis has been on the dominance of highly consolidated Northern retailers over suppliers in the global South. The rise of regional and domestic value chains (RVCs/DVCs) within the Global South which intersect with GVCs, has been found to involve private governance by Southern lead firms. However, we have limited insight into the implications of this changing value chain context for the role of public governance, or different groups of (...) workers. South African fruit provides a rich example of rapid shifts in RVCs/DVCs governed by different private and public actors. The following two questions are addressed: How is the public–private governance of labour standards evolving in the context of RVCs and DVCs that intersect with GVCs? What are the implications for workers operating across different value chains? Conceptually, the paper draws on GVC analysis of governance and power, to examine the governance of labour standards across intersecting value chains. Our analysis highlights the intentional and unintentional mechanisms through which power and standard-setting are diffused away from Northern lead firms to a wider array of public and private actors operating across RVCs/DVCs. While existing analysis of governance and power focuses on singular GVCs, our study highlights diffusion of power across intersecting value chains, with significant and uneven implications for the public–private governance of labour standards. Our findings carry significant ethical implications for the governance of labour standards, as end-markets continue to shift South. (shrink)

Global concerns over environmental and social issues in agrifood value chains have increased and are reflected in a number of voluntary sustainability standards and regulatory initiatives. However, these initiatives are often based on poor knowledge of production realities, creating a disconnect between producing and consuming countries. Through narrative analysis, this paper reveals asymmetries in the responsibilities of the various actors participating in Ecuadorian banana value chains, providing clear problem- and solution-framings. Despite the broad range of actors (...) interviewed, our analysis reveals convergence in two main narratives that reflect asymmetries amongst local actors in terms of their ability to participate, ability to maintain participation, and adaptation strategies in view of changing external factors. One narrative relates to sustainability adaptations, the cost of which is not shared among all value chain actors. This is combined with a downward trend in the price of bananas and the lack of a differentiated price to account for losses and costs arising from increasing sustainability standards. Another narrative reflects a value chain structure that threatens small-farm survival. It highlights the urgency of protecting small-farm activity by enforcing national regulation and developing new market segments/models that understand small-scale producer reality. Study results show that the multitude of standards is not seen as beneficial and that downstream actors rather wish for common minimum standards to reduce business costs. Compatibility between standards and local realities should be a priority for global sustainability standards adoption. Building on the problems and solution-framings of local value chain links, we give voice to local actors, and link their perceptions to existing literature and discursive politics while contributing to social transparency and addressing the democratic deficit in agrifood value chains. (shrink)

This article analyzes the distribution of benefits from Fair Trade between producing and consuming countries. Fair Trade and conventional coffee production and trade were examined in Nicaragua in 2005-2006 and 2008. Consumption of the respective coffees was assessed in Finland in 2006-2009. The results indicate that consumers paid considerably more for Fair Trade-certified coffee than for the other alternatives available. Although Fair Trade provided price premiums to producer organizations, a larger share of the retail prices remained in the consuming country (...) relative to conventional coffee trade. Paradoxically, along with the certified farmers and cooperatives, Fair Trade empowers roasters and retailers. (shrink)

This article discusses the extent to which Global Value Chain governance may lead to animal welfare improvement and help to alleviate animal suffering in food producing chains. Our approach relied on scrutinizing two of the most used compulsory certification templates which are enforced by major buyers to their suppliers in order to assure responsible activity in the farmed fish chain and in the wild-captured fish chain. Since fish may experience intense suffering in regular activities involved in catching, maintenance, (...) transport and management, we analyzed whether those instruments can contribute to improve the welfare of fish. Although positive outcomes may be expected in aquaculture production, serious welfare issues regarding wild-capture fish are brought to the fore and preliminary action is proposed. We present recommendations for improving the positive impacts of such certification schemes in GVCs and argue that sustainability-driven standards could also embrace more AW-focused criteria in order to contribute with reducing unnecessary animal suffering in the fish chain. (shrink)

Agribusiness corporations primarily involved in providing livestock feed—colloquially known as the “ABCD” (Archer Daniels Midland (ADM), Bunge, Cargill, and the Louis Dreyfus Company)—have begun to enter the fishing industry around the world. I argue that this recent entry of agribusiness multinationals in aquaculture, focusing particularly on Cargill, arises to take advantage of strategic opportunities to proliferate, or create links with respect to feed production and development within value chains. Concerning such opportunities, as I document, Cargill first leveraged its (...) access to cheap, overproduced grains in the 1990s, developing ways to insert corn and soy into what it calls “aquafeed.” Next, the multinational firm began proliferating links within fishing industry value chains in the form of introducing new technical assistance services, as well as creating feed supplements and additives. As I explain, these efforts to proliferate links in the supply chain exist as opportunities to charge rents, or surplus profits, which is possible because Cargill retains the right to control the new products and services. An additional link in the chain includes how the corporation has expanded its role in the global food system from its past as an intermediary, to engaging consumers in direct ways by attempting to create their preferences. I conduct my analysis of Cargill’s corporate strategy by focusing on reporting from the fishing industry publication, Aquafeed News, detailing developments from 2000 through 2023. (shrink)

This study delves into the significant ethical criteria in the context of global standards. It addresses the moral wrongdoings and adverse side effects associated with global value chains as discussed in the business ethics literature. The methodology involves theoretical application and synthesis. The study employs ethical principles from deontology, consequentialism, and political cosmopolitanism to establish normative criteria such as “injustice and harm to others” and “bad outcomes.” It further investigates how these criteria should influence consumers' decisions, actions, and (...) responsibilities. These criteria are then used to examine the moral wrongdoings and negative effects mentioned in global standards. The study explores how global standards implicitly express consumers' roles in governing global value chains. It scrutinizes consumers' actions and decisions by applying ethical frameworks to global standards. The study outlines consumers' individual and political responsibilities in achieving the goals of global standards. The research findings have implications for governments, consumers, and organizations in practicing shared responsibility. The aim of this research is to provide normative guidance for responsible actions. (shrink)

Biomass such as crops and agricultural waste is increasingly used as the primary resource for products like bioplastics and biofuels. Incorporating the needs, knowledge, skills and values of biomass producers in the design of global value chains – the steps involved in creating any finished product from design to delivery – can contribute to sustainability, reliability and fairness. However, how to involve biomass producers, especially if they are resource poor, remains a challenge. To make sure that inclusion in (...) global biobased value chains is both fair and effective, the capabilities of relevant actors need to be taken into account, especially of those producing biomass. Access to resources determines to what extent a specific actor can participate in a global value chain. Therefore, differences in capabilities should be a central consideration when new (biobased) value chains are designed. Using the capability approach as an ethical framework to realize inclusion, we discern three complementary strategies for setting up inclusive value chains. Firstly, designing for local conversion factors second, providing adaptive design for new capabilities, and third, investing in local conversion factors. Applying these strategies can lead to context-sensitive design of biorefineries that allow for true inclusion of local stakeholders. We support these claims with reference to case-studies of sugarcane production in Jamaica, modified tobacco in South Africa and the non-edible parts of corn (stover) in the US. (shrink)

The servitization of construction enterprises based on value chain integration means that construction enterprises use prefabricated buildings and combine advantageous resources to integrate preconstruction feasibility analysis, investment and financing services, design, etc., and postconstruction decoration, operation and maintenance, and waste disposal. This article takes the equipment-manufacturing industry as the research object, and based on the analysis of the service-based value chain integration process, it puts forward research hypotheses, constructs research models, and conducts data simulation research to explore how (...) the equipment-manufacturing industry can realize the logic of industrial value through service reintegration and optimization reveal the changing laws and key influencing factors of the equipment-manufacturing industry’s value-added capabilities during this process. The results show that the industrial connection density, service element embedding methods, and knowledge absorption capacity have a significant impact on the value-added ability of the equipment-manufacturing industry during the integration process. The increase in industrial connection density promotes the enhancement of value-added capabilities, and it is significant at the initial stage and then weakened. Both the input-side and output-side service element embedding can affect the value-added ability, but the effects of the two are different. The improvement of knowledge absorptive capacity can promote the occurrence of service innovation, thereby enhancing the value-added capacity of the equipment-manufacturing industry. (shrink)

The burgeoning literature on global value chains has recast our understanding of how industrial clusters are shaped by their ties to the international economy, but within this context, the role played by corporate social responsibility continues to evolve. New research in the past decade allows us to better understand how CSR is linked to industrial clusters and GVCs. With geographic production and trade patterns in many industries becoming concentrated in the global South, lead firms in GVCs have been (...) under growing pressure to link economic and social upgrading in more integrated forms of CSR. This is leading to a confluence of “private governance”, “social governance”, and “public governance”. This new form of “synergistic governance” is illustrated with evidence from recent studies of GVCs and industrial clusters, as well as advances in theorizing about new patterns of governance in GVCs and clusters. (shrink)

In a world where issues of food safety and food security are increasingly important, the social responsibility of central actors in the food chain—producers and the main grocery chains—becomes more pressing. As a response, these actors move from implicitly assuming social responsibilities implied in laws, regulations and ethical customs, towards explicitly expressing social responsibilities. In this paper, we discuss the ethical values relevant for the social responsibility of central food producers and retailers in Norway, one of the most subsidized (...) and protected areas of food production in the world. How do the actors perceive and express their social responsibility, and—given their position in the local, national and global market—how should they handle these responsibilities? We analyze Tine and Nortura, two producers owned by farmer cooperatives with market regulator function, as well as Coop—a dominant grocery chain in Norway, with basis in the same public ownership model as the farmer-owned cooperative producers. While the complex roles of these key actors in the Norwegian food market have been criticized from several angles, we argue that these multifaceted roles put them in a good position to promote informed consumer choices in a globalized market. (shrink)

This paper explores the conditions favouring or inhibiting the implementation of strategic corporate social responsibility policies in the context of global value chains. Using transaction cost theory, we specify the economic and behavioural issues raised by strategic CSR policies. We show that the existence of market rewards for such policies does not constitute a solution per se, but tends to increase the difficulties that value chain members face. Bringing TCT into the analysis of the diffusion of strategic (...) CSR policies in GVCs helps us to make different contributions. We first theoretically identify some limiting conditions of strategic CSR policies in GVCs. We also contribute to developing a more robust theoretical perspective for CSR in GVC research, which remains underdeveloped and mostly driven by empirical case studies. Finally, we shed light on new research questions and topics that could guide major theoretical and empirical investigations in the capacity of GVCs members to bypass the numerous difficulties involved in the implementation of strategic CSR policies. (shrink)

The trend toward increased levels of business interconnectedness in the value chain has clouded the issue of responsibility for business practices. Firms havehistorically denied responsibility for many questionable practices by suggesting that such acts were committed somewhere else in the value chain and that, because they are separated by an arm’s length transaction, they are not responsible. Emerging evidence suggests that in light of the interconnected and networked business environment, the arm’s length defense is growing less effective. We (...) discuss the practical realities that firms are facing in the highly networked environment and offer examples of each. We also offer practical guidance about each example within a total responsibility management framework. (shrink)

In the current digital era, the borders amongst firms are getting blurred when it comes to value creation. Therefore, the traditional configuration of the value chain is frequently replaced by other ones which include the collaborative participation of different agents. Within this context, global value chains, where the value activities are located in different countries, and industrial clusters, which combine competition and cooperation, are attracting a growing attention of both business leaders and scholars in the (...) recent years. Through a bibliometric analysis, this paper disentangles the intellectual and conceptual structure of the research topic of industrial clusters and global value chains. Results show the multidisciplinary character of the topic, including papers published in different areas, such as business, regional studies and world development, as well as its close link with aspects like innovation, regional development, governance or organization. Finally, this study remarks the research lines that could attract more attention in the immediate future. (shrink)

Global supply chains often distribute value inequitably among the Global North and South. This perpetuates poverty and contributes to indecent work in raw material-producing countries, thus creating challenges to sustainable development. For decades, corporate social responsibility, social entrepreneurship, and sustainable business model innovations have aimed to distribute value more equitably across global value chains, for instance via fair trade, alternative trade, and direct trade. This article examines a novel and hitherto understudied innovation for equitable (...) class='Hi'>value distribution in global supply chains: “value chain profit sharing.” We draw on interview and archival data from two cases of social entrepreneurs working in the coffee sector to develop a generalized model. One of the model's key features is that the entrepreneur pays suppliers in multiple installments that reflect market conditions (as opposed to a single lump sum based on prediction). We show how this can increase value creation, appropriation, and equitable distribution. Although our research suggests that this model may be highly contingent on leaders' skills, resources, sense of place, and accountability to suppliers, we find no evidence that its applications are limited to specific countries or sectors. Our research further extends extant theory by showing how “value chain profit sharing” may relieve some of the tensions often associated with sustainable business models, including distributing value to suppliers while maintaining financial solvency; creating value while pursuing a social mission; providing benefits to suppliers without curtailing their market opportunities; responding to market conditions while maintaining commitments to suppliers; and scaling without diluting benefits. It thereby contributes to the literatures on sustainable business model innovations, equitable value distribution in global supply chains, novel application of revenue-sharing contracts, and innovative methods of profit sharing. It furthermore provides actionable guidance for social entrepreneurs, corporate social responsibility practitioners, and supplier cooperatives aiming to achieve more equitable value distribution and sustainable supply chains. (shrink)

A common and driving assumption in agricultural research is that the introduction of research trials, new practices and innovative technologies will result in technology adoption, and will subsequently generate benefits for farmers and other stakeholders. In Lao PDR, the potential benefits of introduced technologies have not been fully realised by beneficiaries. We report on an analysis of a survey of 735 smallholder farmers in Southern Lao PDR who were questioned about factors that influenced their decisions to adopt new technologies. In (...) this study, we have constructed measures or states of adoption which identify key elements of an adoption decision-making nexus. Analysis was conducted to statistically group explanatory factors of adoption. The key explanatory factors represented attributes of the farmer, the factors considered when undertaking production decisions and elements of the agricultural value chain that present as opportunities or constraints. We describe the combination of farmer’s personal attributes, perceptions of the value chain, and the introduction of new technologies by external actors as an “agricultural research value chain”, where agricultural research activities intervene to derive greater benefits for local farmers. A generalised linear model, via Poisson regression analysis on the identified explanatory factors, was applied to explore how they influence adoption measures and we found several significant relationships. (shrink)

Improving working conditions at the bottom of global value chains has become a central issue in our global economy. In this battle, trade unionism has been presented as a way for workers to make their voices heard. Therefore, it is strongly promoted by most social standards. However, establishing a well-functioning trade union is not as obvious as it may seem. Using a comparative case study approach, we examine impediments to farm-level unionism in the cut flower industry in Ethiopia. (...) For this purpose, we propose an integrated framework combining two lenses, namely a vertical one and a horizontal one. We identify 10 impediments that point to three major dimensions contributing to unionisation. These three dimensions include awareness of and interest from workers, legitimacy of trade unions, and capacity of trade unions to act. Furthermore, our results suggest that private social standards may, in certain cases, be counterproductive for the efficient functioning of trade unions. Although we argue that there is no ‘quick fix’ solution to weak workplace unionism at the bottom of global value chains, we stress the importance of considering the dynamics of, and interactions between, the impediments when designing potential support measures that mitigate negative impacts. (shrink)

The rise of private standards, including those involving multi-stakeholder processes, raises questions about whose interests are served and the kind of power that is exerted to maintain these interests. This paper critically examines the battle for ideas—the way competing factions assert their own narratives about value chain relations, the role of standards and related multi-stakeholder processes. Drawing on empirical research on the horticulture and floriculture value chains linking Kenya and the United Kingdom, the analysis explores the framing (...) of sustainability issues, especially around labor issues and good agricultural practice, and the choice of response with respect to private standards and multi-stakeholder initiatives since the late 1990s. We identify four competing narratives currently in play: a dominant global sourcing narrative, a pragmatic development narrative, a broader development narrative and a narrative we term potentially transformative. This last narrative is currently emerging through the unpacking of narratives in relation to the framing of sustainability problems and solutions, and in terms of legislative, executive and judicial governance. The paper contributes to emerging understanding of power in value chains, moving beyond material power to a consideration of how ideational power is exerted and resisted. (shrink)

The development of sustainable agri-food systems requires not only new academic knowledge, but also concrete social and organizational change in practice. This article reflects on the action research process that supported and explored the learning process in an emerging agri-food value chain in the Berlin-Brandenburg region in eastern Germany. The action research study involved value chain actors, academic researchers, and process facilitators in a learning network. By framing the network’s learning and problem solving processes in concepts of organizational (...) learning, lessons were drawn for researchers and value chain developers. The results underline the importance of process facilitation in a learning value chain to create a social space, in which the actors in the value chain can interact and find a common basis for collaboration. In the learning process, facilitators used an iterative design to consistently align learning activities with the needs of practitioners to ensure practical relevance. To establish new practices and partnerships, value chain actors challenged existing routines and developed new ideas and visions, while at the same time improving established practices within their organizations and along the entire value chain. (shrink)

The division of labor in the global value chain has reshaped the competitive advantage of enterprises participating in the international market and has a significant influence on the distribution of their factor income. Based on the perspective of market choice, this paper uses China’s industrial enterprises’ data, Customs Statistical Data on Import and Export, Word Input and Output Database, and BACI database from 2000 to 2007 to analyze the effect of competitive strategy of a firm’s GVC participation on its (...) labor income share. Herein, the competition strategy is depicted by the quality and price of export goods. The empirical results show the following. Quality competition has a larger effect on labor income share than price competition. High-quality and high-price or high-quality and low-price strategies tend to have a significant negative effect on labor income share, while low-quality and low-price and low-quality and high-price strategies have a positive effect. The higher the target market GVC status, the lower the labor income share of exporting firms, and the target market GVC status amplifies that the high-quality and high-price strategies on firms’ labor income share the negative effect of high-quality and low-price strategies on exporters’ labor income share. High-quality and low-price strategies have a significant negative effect on exporters’ labor income share when competing with developing countries in developed country markets or with developed countries in developing country markets. However, the positive effect of low-quality and low-price strategies and low-quality and high-price strategies kept unchanged. The findings remain robust after controlling for endogeneity and accounting for the effects of firm heterogeneity, indicator measurement, and sample variation. (shrink)

Women constitute the majority of workers in global value chains (GVCs), yet few GVC scholars focus on the governance of gender. Based on an investigation (2013–2017) started after the Rana Plaza disaster in Bangladesh, this article presents “voice to the subordinate strata” as the first principle of feminist governance in the GVC. Findings reveal the matrix of power, which includes the International Labour Organization and the state that underpins the political economy of the Southern factory. This study provides (...) a transformative model of feminist governance as transnational justice. As the relational ethic that links justice in the workplace to the quality of a woman's life, feminist governance is also the moral economy of the GVC wherein the woman worker is valued as a citizen in the global economy. (shrink)

States and other climate actors now commonly set ‘net zero’ targets – pledging that, by a certain date, they will put no more carbon into the atmosphere than they take out. However, there is controversy over what exactly should count as attaining such targets. The method of emissions accounting that states currently use – territorial emissions accounting – is often criticized as problematic, but a fully satisfactory explanation of the problem is needed. We argue that the key both to understanding (...) the problem and to solving it is that there is a specific kind of cooperative contribution – a mereological contribution – that a national net zero commitment needs to make to global climate action in order to meet the standards that global citizens should hold states to. On this basis, we propose an alternative method – Contributory Value-Chain Accounting – showing how it can be qualified to reflect trade relationships between net-zero-aligned countries, and defending it against the objections that it involves double counting, is infeasible and too informationally demanding, and that it would send the wrong incentive signals. (shrink)

Research and activism have increasingly denounced the problematic environmental record of the infrastructure and value chain underpinning artificial intelligence (AI). Water-intensive data centres, polluting mineral extraction and e-waste dumping are incontrovertibly part of AI’s footprint. In this article, I turn to areas affected by AI-fuelled environmental harm and identify an ethics of resistance emerging from local activists, which I term ‘elemental ethics’. Elemental ethics interrogates the AI value chain’s problematic relationship with the elements that make up the world, (...) critiques the undermining of local and ancestral approaches to nature and reveals the vital and quotidian harms engendered by so-called intelligent systems. While this ethics is emerging from grassroots and Indigenous groups, it echoes recent calls from environmental philosophy to reconnect with the environment via the elements. In empirical terms, this article looks at groups in Chile resisting a Google data centre project in Santiago and lithium extraction (used for rechargeable batteries) in Lickan Antay Indigenous territory, Atacama Desert. As I show, elemental ethics can complement top-down, utilitarian and quantitative approaches to AI ethics and sustainable AI as well as interrogate whose lived experience and well-being counts in debates on AI extinction. (shrink)