Purpose: detailing performance systems in which purchasing managers

Purpose:Through an in-depth literature review the researchers in the highly citedpaper, critically assess the potential and limitations of the complianceparadigm and then the emerging cooperation paradigm for working with CSR inglobal value chains. This paper addresses whether the theory behind theparadigms matches the practice with an emphasis on the associated powerdynamics.  Method:Through a desk-based literature review the authors outline the drivers, mainfeatures, and conceptual underpinnings of the compliance paradigm and then usea similar structure to investigate the drivers, main features, and conceptualunderpinnings of the cooperative paradigm for working with CSR in global valuechains.  Findings:The authors cite that from their analysis of theory, CSR-compliant factoriespunished non-compliance, but in practice this generated moderate improvementsin worker conditions in export-oriented industries in developing countries.

Inresponse a new, cooperation-based paradigm emerged in which internationalbuyers revise their purchasing practices, help build the capacity of localfactory management and workers, and cooperate with local resources (e.g. NGOs,trade unions) to improve factory monitoring and thus labour standardcompliance. The researchers conclude that this cooperation paradigm is unlikelyto fundamentally alter power relationships in global value chains and cannotdeliver sustained improvements in working conditions and higher incomes acrossdeveloping country export industries considering constraints imposed byworldwide competition among suppliers. They also conclude by suggestingother avenues for research on CSR in global value chains namely: looking toother disciplines related to supply chains/operations management and labourstandards/codes of conduct in global value chains; detailing performancesystems in which purchasing managers operate, to determine how differentpolicies reward and/or punish decision making that integrates economic, socialand environmental criteria in purchasing practices; and researching the effectsof the new cooperative paradigm on CSR and whether pilot projects that haveattempted to improve human resources management capacity at local supplier factorieshave been successful. 

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