Modern slavery in global value chains: A global factory and governance perspective

Abstract

‘Modern slavery’ describes various forms of severe relational labour exploitation. In the realm of global value chains and global factories that are led by multinational enterprises, modern slavery encompasses practices such as forced labour and debt bondage. Multinational enterprises organise and orchestrate global value chains into global factories that are highly adaptive to market pressures and changes in the external environment. We employ the global factory framework to conceptualise when and how global value chains become more vulnerable to modern slavery. We argue that combinations of the three global value chain characteristics: complexity, appropriation arrangements, and obligation cascadence, jointly form an environment in which modern slavery can evolve and take root. The degree to which forms of modern slavery become visible and recognisable depends on the particular combination of these characteristics. External factors can moderate the relationship between these factors (e.g. involvement of non-governmental organisations) or exaggerate their effect (e.g. a pandemic).

Modern slavery and the employment relationship: Exploring the continuum of exploitation

“…Examining labour exploitation from multiple viewpoints reveals the true complexity of designing regulatory systems and improved business practices to address entrenched labour exploitation. The research of both Caspersz et al (2022) and Frenkel et al (2022) reveals the utility of examining the causes of labour exploitation through an industry specific lens that ties factory practices with broader macro-economic trends evident in GVC production. Modern slavery and labour exploitation more generally impact a diverse range of workplaces and manifest in many different forms so there continues to be value in further exploring these issues sector by sector.…”

“…The first article in this Special Issue examines when and how workers in GVCs can become vulnerable to labour exploitation. From a macro-level perspective, Caspersz et al (2022) argue that combinations of three GVC characteristics contribute to an environment in which modern slavery can manifest: complexity, appropriation arrangements, and obligation cascadence. Regarding complexity, the ability of GVC actors to monitor and enforce labour standards becomes increasingly difficult as the length of the value chain and the number of actors increases.…”

Learning to see modern slavery in supply chains through paradoxical sensemaking

“…These practices violate individuals' social and economic freedoms and coerce them into labor (Nolan & Bott, 2018). There is a considerable gray area in defining what constitutes modern slavery, but it is generally accepted to sit at the extreme end of a continuum of labor exploitation practices (Caspersz et al, 2022; Crane et al, 2022). Modern slavery is characterized by control, rather than ownership as experienced under historic chattel slavery (Crane, 2013).…”

ASEAN and Global Value Chains: Locking in Resilience and Sustainability

“…Nevertheless, evidence points to the prevalence of informality and poor working conditions in GVCs, especially in smallscale enterprises and subcontractors in lower-tier segments (Aked 2021; Harvey 2019). Related to this, there is also persistent child labor and forced labor in GVCs, which can be traced back to the interaction of three critical dimensions (ILO, OECD, IOM, and UNICEF 2019; Caspersz et al 2022). These include (i) gaps in statutory legislation, enforcement, and systems of justice that allow noncompliance; (ii) poverty and other socioeconomic pressures faced by individuals and workers; and (iii) a lack of awareness, capacity, and policies on the part of businesses of their responsibility to uphold fundamental principles and labor rights.…”