This study aims to contribute to the debate on the efficacy of softer regulations to prevent violations of workers’ rights in the global clothing supply chain.
This study draws on value trap and adverse incorporations as a theoretical lens to understand the reasons behind the continued violations of workers’ rights. The empirical findings are based on an analysis of 24 semi-structured interviews with workers and owners. Extensive documentary evidence to track the plight of workers in Bangladeshi clothing factories during the pandemic.
The study demonstrates how imbalances in supply chain relationships allow retailers to take advantage of the pandemic. The authors find that some retailers worsened the working conditions by cancelling orders, demanding discounts on old orders and forcing suppliers to agree to a lower price for new orders. Large brands and retailers’ responses to the COVID-19 pandemic remind us that softer regulations, such as third-party audits, are likely to be ineffective given the power imbalance at the heart of the supply chain.
The study presents a case for regulatory frameworks and intense stakeholder activism to encourage large retailers and brands to behave responsibly. This is especially important when a supply chain is value-trapped and workers are adversely incorporated and unprotected.
Drawing on studies on adverse incorporations, value-trapped supply chains and the plight of workers during the COVID-19 pandemic, the study offers a broader understanding of the continued violation of workers’ rights and the efficacy of softer regulations.
