Femnet e.V.

When 250 workers die in a fire at a Pakistani factory producing jeans for a German discount chain, when the work day lasts twelve hours in Cambodia’s garment industry or when workers commit suicide in Chinese factories producing electronics for international brands, should only the corporations in Pakistan, Cambodia, and China be held liable? What about the liability of their parent and subcontracting companies abroad? The United Nations increasingly recommends that states ensure that enterprises domiciled in their territory respect human rights throughout their extraterritorial operations. Furthermore, the United Nations and the OECD recommend that parent and subcontracting companies conduct human rights due diligence. Both developments are reflected in General Comment 23, which was recently adopted by the Committee on Economic, Social and Cultural Rights and relates to the right to just conditions of work. To date, however, there is no domestic law that specifically addresses the liability of parent or subcontracting companies for violations of the right to just working conditions of employees of foreign subsidiaries or suppliers. Although case law is emerging, much uncertainty remains about criteria establishing such liability. France and Switzerland are discussing legislative steps for clarifying corporate liability beyond disclosure requirements to ensure compliance with international recommendations. 

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Multi-stakeholder initiatives (MSIs) are increasingly used as a default mechanism to address human rights challenges in a variety of industries. MSI is a designation that covers a broad range of initiatives from best-practice sharing learning platforms (e.g., the UN Global Compact) to certification bodies (e.g., the Forest Stewardship Council) and those targeted at addressing governance gaps (e.g., the Fair Labor Association). Critics contest the legitimacy of the private governance model offered by MSIs. The objective of this paper is (1) to theoretically develop a typology of MSIs, and (2) to empirically analyze the legitimacy of one specific type of MSI, namely industry-specific MSIs. We argue that industry-specific MSIs that set out to govern corporate behavior have great potential to develop legitimacy. We analyze two industry-specific MSIs—the Fair Labor Association and the Global Network Initiative—to get a better understanding of how these MSIs formed, how they define and enforce standards, and how they seek to ensure accountability. Based on these empirical illustrations, we discuss the value of this specific MSI model and draw implications for the democratic legitimacy of private governance mechanisms.

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As the lowest level in the subcontracted supply chain, homeworkers are invisible and subject to exploitation. Existing codes of conduct and monitoring schemes favor the rights of the visible workforce employed in industrial settings in tier 1 factories. We conducted qualitative field research with the Self employed Women’s Association’s (SEWA) embroidery center in New Delhi, India. Findings provide understanding of the sustainable management policies and practices that have been put in place to assure global buyers that homework can be carried out in ways consistent with standards for human rights, making it a protected component of sustainable supply chains.

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The country study of Albania gives an overview of the Albanian garment and shoe sector. Going further, the study provides facts of the wages paid for garment and shoe workers as well as it gives information about the working conditions in Albania. Furthermore, Interviews were conducted with 52 workers in 4 factories. The study closes with recommendations for action.

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This study attempts to depict a complicated and multi-dimensional picture of labour standards in the GSCs of garments, footwear, and electronics within the context of international trade regimes and the national industrial development of Vietnam.

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