Firm Compliance and Public Disclosure in Vietnam
Global consumers, international brands, and governments in producing and outsourcing countries aim to improve working conditions in global value chains, but uncertainty exists about what is the best approach. This research uses firm-level data from...
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/293561569504345143/Firm-Compliance-and-Public-Disclosure-in-Vietnam http://hdl.handle.net/10986/32485 |
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okr-10986-324852022-07-03T12:13:48Z Firm Compliance and Public Disclosure in Vietnam Hollweg, Claire H. LABOR STANDARDS LABOR POLICY GLOBAL VALUE CHAIN PUBLIC DISCLOSURE COMPLIANCE CORPORATE GOVERNANCE OCCUPATIONAL SAFETY WORK TIME CHILD LABOR Global consumers, international brands, and governments in producing and outsourcing countries aim to improve working conditions in global value chains, but uncertainty exists about what is the best approach. This research uses firm-level data from the International Labour Organization–International Finance Corporation Better Work Vietnam program to assess the relationship between transparency on working conditions and firm compliance in the apparel sector in Vietnam between 2010 and 2018. It exploits a change in the policies of Better Work Vietnam when, in 2015, the program announced the launch of a new public disclosure program that would see factories' names made publicly available along with their compliance (or lack thereof) with certain "critical issues." The paper first examines which firm characteristics correlate with reductions in noncompliance rates over time, and then examines the impact of the public disclosure policy on compliance rates and firm dropout using different empirical techniques. It finds that while continued participation in the Better Work Vietnam program has the strongest effect on changes in firm compliance with labor standards over time, public disclosure is also associated with increased compliance, with stronger effects in some compliance points, including occupational health and safety, work time, and child labor. There is some evidence of increased dropout, but no evidence of firms only making progress on the critical issues is found. The research findings suggest that public disclosure within global value chains matters for firm behavior. 2019-10-04T16:55:52Z 2019-10-04T16:55:52Z 2019-09 Working Paper http://documents.worldbank.org/curated/en/293561569504345143/Firm-Compliance-and-Public-Disclosure-in-Vietnam http://hdl.handle.net/10986/32485 English Policy Research Working Paper;No. 9026 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
LABOR STANDARDS LABOR POLICY GLOBAL VALUE CHAIN PUBLIC DISCLOSURE COMPLIANCE CORPORATE GOVERNANCE OCCUPATIONAL SAFETY WORK TIME CHILD LABOR |
| spellingShingle |
LABOR STANDARDS LABOR POLICY GLOBAL VALUE CHAIN PUBLIC DISCLOSURE COMPLIANCE CORPORATE GOVERNANCE OCCUPATIONAL SAFETY WORK TIME CHILD LABOR Hollweg, Claire H. Firm Compliance and Public Disclosure in Vietnam |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
Policy Research Working Paper;No. 9026 |
| description |
Global consumers, international brands,
and governments in producing and outsourcing countries aim
to improve working conditions in global value chains, but
uncertainty exists about what is the best approach. This
research uses firm-level data from the International Labour
Organization–International Finance Corporation Better Work
Vietnam program to assess the relationship between
transparency on working conditions and firm compliance in
the apparel sector in Vietnam between 2010 and 2018. It
exploits a change in the policies of Better Work Vietnam
when, in 2015, the program announced the launch of a new
public disclosure program that would see factories'
names made publicly available along with their compliance
(or lack thereof) with certain "critical issues."
The paper first examines which firm characteristics
correlate with reductions in noncompliance rates over time,
and then examines the impact of the public disclosure policy
on compliance rates and firm dropout using different
empirical techniques. It finds that while continued
participation in the Better Work Vietnam program has the
strongest effect on changes in firm compliance with labor
standards over time, public disclosure is also associated
with increased compliance, with stronger effects in some
compliance points, including occupational health and safety,
work time, and child labor. There is some evidence of
increased dropout, but no evidence of firms only making
progress on the critical issues is found. The research
findings suggest that public disclosure within global value
chains matters for firm behavior. |
| format |
Working Paper |
| author |
Hollweg, Claire H. |
| author_facet |
Hollweg, Claire H. |
| author_sort |
Hollweg, Claire H. |
| title |
Firm Compliance and Public Disclosure in Vietnam |
| title_short |
Firm Compliance and Public Disclosure in Vietnam |
| title_full |
Firm Compliance and Public Disclosure in Vietnam |
| title_fullStr |
Firm Compliance and Public Disclosure in Vietnam |
| title_full_unstemmed |
Firm Compliance and Public Disclosure in Vietnam |
| title_sort |
firm compliance and public disclosure in vietnam |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/293561569504345143/Firm-Compliance-and-Public-Disclosure-in-Vietnam http://hdl.handle.net/10986/32485 |
| _version_ |
1764476637609459712 |