Firm participation in voluntary regulatory initiatives: The Accord, Alliance, and US garment importers from Bangladesh

John S. Ahlquist () and Layna Mosley ()
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John S. Ahlquist: University of California
Layna Mosley: University of North Carolina

The Review of International Organizations, 2021, vol. 16, issue 2, No 3, 317-343

Abstract: Abstract Most research on private governance examines the design and negotiation of particular initiatives or their operation and effectiveness once established, with relatively little work on why firms join in the first place. We contribute to this literature by exploring firms’ willingness to participate in two recent, high-profile private initiatives established in the aftermath of the Rana Plaza disaster in the Bangladesh ready-made garment (RMG) sector: the Accord on Building and Fire Safety and the Alliance for Worker Safety in Bangladesh. Using novel shipment-level data from U.S. customs declarations, we generate a set of firms that were “eligible” to join these remediation initiatives. We are able to positively attribute only a minority of US RMG imports from Bangladesh to Accord and Alliance signatories. Firms with consumer-facing brands, publicly-traded firms, and those importing more RMG product from Bangladesh were more likely to sign up for the Accord and Alliance. Firms headquartered in the USA were much less likely to sign onto remediation plans, especially the Accord.

Keywords: Supply chains; Private governance; MNCs; Worker rights; Bangladesh (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s11558-020-09376-z

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