Searching for institutions: upgrading, private compliance, and due diligence in European apparel value chains

Abstract

This article argues that key avenues to improve working conditions – value chain integration, on the one hand, and lead firms’ compliance processes, on the other – have not resulted in improvements in the European apparel industry. Evidence is drawn from economic and social up-/downgrading trajectories in major apparel producing countries as well as a case study on social audits and labour market enforcement in the United Kingdom. Both suggest that institutions to prevent labour exploitation in supply chains have largely been ineffective. Institutional experimentation, which has been hybrid in combining hard and soft law as well as public and private governance elements, underlined the role of lead firms but continued to exclude civil society actors. It is argued that human rights due diligence, at the heart of many institutional experiments, draws on a deficient private compliance model, rather than building in worker-driven elements that could lead towards a better alternative.