Public–private partnership in labor standards governance: Better factories Cambodia

Abstract

The growth of outsourcing in apparel manufacturing has raised concerns about increasingly exploitative working conditions. Given the failure of existing enforcement mechanisms, we need to look to alternate institutional structures to address the global challenge of declining labor standards. This paper examines the case of Better Factories Cambodia (BFC), a public–private partnership (PPP) that has effectively protected workers' rights through collaboration between the Government of Cambodia, the International Labour Organization, and multi‐national apparel firms. Prior to the BFC, none of these actors was able to independently draw up and enforce stronger standards through effective monitoring. In collaboration, however, this mix of private, state, and inter‐governmental organizations have been able to achieve the twin goals of stronger labor protections and effective enforcement by building on each partner's distinct organizational strengths. While this case may have broader relevance, its successes are tempered by dependence on a single industry and on buyers' preferences for inspected production sites. Further, similar partnerships may not emerge without strong state intervention to demonstrate their positive outcomes. Copyright © 2011 John Wiley & Sons, Ltd.

Effectiveness of Public Private Partnerships: A Systematic Literature Review

“…Bhuiyan (2010) has observed that failure to observe good governance and politico-administrative culture of a country may cause alternative forms of governance like PPPs to be established in service delivery sectors. Researchers tend to agree that governance and network theories and their various dimensions are helpful in understanding PPP setting, implementation and outcomes (Aars & Fimreite, 2005;Andon, 2012;da Cruz & Marques, 2012;Lippi et al, 2008;Mauldin, 2012;Parola et al, 2013;van den Hurk & Verhoest, 2015;van der Heijden, 2013;Velotti et al, 2012;Wetterberg, 2011).…”

Working Conditions, Work Outcomes, and Policy in Asian Developing Countries

“…Social labeling initiatives are just one example of the kind of system that emerges in the absence of effective enforcement. Wetterberg (2011), for example, focuses on the rise of the Better Factories Cambodia program in the context of insufficient enforcement. This paper, in particular, describes how the Better Factories Cambodia approach took the lack of enforcement into account to forge an alternative multistakeholder approach that has been discussed earlier in this review.…”

Accountability challenges in public–private partnerships from a South African perspective

“…This is a contract between governments, international organisations, companies, non-governmental organisations, investors, business and industrial organisations to increase transparency, avoid corruption and improve governance in transactions between governments and companies in the extractive industries (Aaronson, 2011). The Government of Cambodia, for example, has effectively protected workers' rights through collaboration between the International Labour Organisation and multinational firms through Better Factories Cambodia (BFC) (Wetterberg, 2011).…”