Abstract
Environmental and social upgrading are emerging in the global value chains (GVCs) literature as areas of investigation related to upgrading. A limited number of studies have been conducted to explore environmental upgrading processes and outcomes, while considerable research has analysed the relationship between economic and social upgrading in GVCs. However, the relationship between environmental and social upgrading still needs to be investigated. This qualitative empirical research explores this under-theorised area by studying apparel firms in South Asia, namely in Bangladesh and Sri Lanka, where social upgrading initiatives can be linked to environmental upgrading. Empirical findings suggest that there is a positive relationship between environmental and social upgrading in GVCs. Environmental upgrading not only results in increased wages, bonuses and allowances through skills development, learning and training but also results in improved working conditions. Employees are enthusiastic about being part of an environmental upgrading initiative.
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