While Corporate Social Responsibility (CSR) is often seen to involve voluntary and deliberative approaches such as certification, governments have recently stepped into the picture through national legislation. France’s Law on Duty of Vigilance adopted in 2017 is a landmark case of such legislation. Years of voluntary CSR certification schemes led by Civil Society were replaced by a new philosophy of fighting for mandatory CSR controlled by a judge. We depict the change of mindset and the related change of roles inside (...) the coalition of Civil Society actors represents a Machiavellian Moment. The combination of collective civil society actors’ roles (namely nongovernmental organizations and labor unions) as Machiavellian _Virtue_ with disruptive events as Machiavellian _Fortuna_ made the law’s adoption possible. Based on this case study, we provide an analysis of civil society roles in the development of CSR-related legislation. (shrink)

Global supply chains enhance value, but are subject to governance problems and encourage evasive practices that deter sustainability, especially in developing countries. This article proposes that the precontractual environment, where parties are interested in trade but have not yet negotiated formal terms, can enable a unique process for building long-term sustainable relations. We argue that precontractual signals based on relation-specific investments, promises of repeated exchange, and reassuring cheap talk can be leveraged in precontract by the power of framing. We show (...) how these framing signals are amplified in precontract because the lack of credible information, minimal time for reflection, and the role of risk-aversion present in supply chain contract negotiations. The result is a process that is uniquely productive for building long-term and value-generating contractual relations in supply chains, particularly in skeptical or even hostile negotiating contexts. We then show how framed precontractual signals generate a joint contractual surplus through a supernormal profit known as a relational rent. This rent can be invested to improve sustainable practices, an efficient option in a competitive market due to the second order effects that sustainable practices generate. This novel process we propose thus potentially generates superior returns to other trust measures and encourages focus on precontract as a fertile environment for building sustainable investments. (shrink)

This study provides much-needed empirical study of workplace inclusion of underresourced employees of low socioeconomic status. Based upon a conservation of resources perspective, we have examined the centrality of resources as a key inclusion process for well-being outcomes for employees with insufficient resources. In the context of misuse of institutional power over operative workers within highly segmented and hierarchical work settings, this study validates the importance of economic inclusion for fostering workers’ well-being via fair employment practices. This study also offers (...) new knowledge of the integrative resource model of workplace inclusion research by validating workers’ personal resources of learning orientation as an internal condition for strengthening the positive effect of economic inclusion on well-being. (shrink)

Local supplier corporate social responsibility in developing countries represents a powerful tool to improve labour conditions. This paper pursues an inter-organizational network approach to the global value chain literature to understand the influence of suppliers’ collective behaviour on their CSR engagement. This exploratory study of 30 export-oriented and first-tier apparel suppliers in Bangladesh, a developing country, makes three relevant contributions to GVC scholarship. First, we show that suppliers are interlinked in a horizontal network that restricts unilateral CSR engagement. This is (...) justified in that unilateral CSR engagement is a source of heterogeneity in labour practices; consequently, it triggers worker unrest. Second, we present and discuss an exploratory framework based on four scenarios of how suppliers currently engage in CSR given their network’s pressure toward collective behaviour: unofficial CSR engagement, geographic isolation, size and competitive differentiation, and external pressure. Finally, we show the need to spread CSR homogeneously among suppliers and to reconceptualize the meaning of CSR in developing countries, encouraging more scrutiny toward horizontal dynamics. (shrink)