A series of industrial accidents that killed workers in the supply chains of multinational corporations triggered backlash by Western consumers. In response, many global companies committed to treat workers in poor countries better by imposing “responsible sourcing” codes of conduct on their suppliers. Jose Vasquez (London School of Economics) joins to explain the impact of these supplier codes of conduct on Costa Rica. Was it all just hot air, or did workers receive higher wages and better benefits? And what were the unintended consequences (39:29)?
Read more…
- Alonso Alfaro-Ureña, Ben Faber, Cecile Gaubert, Isabela Manelici, and Jose Vasquez. 2022. “Responsible Sourcing? Theory and Evidence from Costa Rica.” NBER Working Paper No. 30683, November.