Global Value Chains: Towards a more Responsible Governance ?

The speaker Laurence BEIERLEIN, (researcher at the Paris Est Créteil University), made a speech at the conference taking place at the CNAM (Conservatoire National des Arts et Métiers) on November 13, 2015. Her speech was about the dramatic incident that occurred in a textile factory in Bangladesh on April 24, 2013.

Laurence BEIERLEIN began her presentation by mentioning that the awareness of sustainable development is acquired by the arrival of disasters. If this situation is regrettable, it proves true in the primary, secondary and tertiary sectors. The study of the textile factory in Bangladesh confirms this theory because in fact, the collapse of the Rana Plaza garment building there two years ago killed more than a thousand victims.

Her speech shows many interesting aspects especially when the concept of global value chains is discussed. Indeed recent describe the transnational company networks flexible organization models. Theorists working on this current society evoke the consequences of these pilot companies at different scales. Low production costs Working conditions are a way to regulate economic activity but is a major risk for both workers and the environment. The exploitation of labor, resource depletion and deforestation are the main consequences were mentioned during the presentation. This is why an agreement has been approved by the International Labour Organisation (ILO) to improve working conditions. The deputies asked that Parliament debate quickly from a bill requiring companies a duty of care to companies employing subcontractors outside Europe. They also urged "the French textile companies and supermarkets with business partners in Bangladesh to participate in the compensation fund for victims of Rana Plaza" in the amount of $ 40 million. It was also interesting to show that despite all these measures, only 1590 plants were visited in 5000, the aim being to ensure compliance with the new conditions and to correct the problems raised. The disaster highlighted the problems of working conditions in countries with very low wages including Bangladesh where wages are four times lower than in China. The Rana Plaza also pointed to the responsibility of western brands which provide in that country, often through a cascade of subcontractors with whom they have no direct contacts and they not even aware. Yet the country still remains very attractive. Indeed, a year after the disaster, aside from Disney, few companies have left the site. However, many are trying to find other suppliers in other countries. To clarify the sector, 150 international companies have signed an agreement on safety and fire hazards in Bangladesh (Fire and Safety Agreement).

In conclusion, this intervention was very interesting because it raises many relevant points that are often left in the shadows. The consumer and producer countries are different in many ways. Economic necessity, competing states, the lack of resources and corruption are all factors that separate them. However, collective initiatives such as IFRS would empower the global value chains of both human and environmental. This then opens the debate of environmental standards in the context of the COP 21.