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The Internationalization of Law: The Evolution of Labor Standards in Response to Globalization

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Contracting International Employee Participation

Part of the book series: International Law and Economics ((ILEC))

Abstract

MNCs have been on the rise during the last decades and are a vital element of a modern economy (Dunning and Lundan 2008), which is characterized by an increasing fragmentation of production and the growing importance of global supply chains (Elms and Low 2013). The globalization of production generates economic growth, creates investment and jobs, reduces poverty and increases the demand for the rule of law (Ruggie 2008, p. 189). The latter is an element of robust democracies, fundamental to encouraging investments in physical and human capital (Voigt and Gutmann 2013), attracting foreign direct investment (Busse and Hefeker 2007) and is associated with better human rights performance (Abouharb et al. 2013). Vice versa unstable political environments, human rights violations and conflictual labor relations are serious obstacles for MNCs wanting to invest.

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Notes

  1. 1.

    http://www.ilo.org/public/english/standards/relm/country.htm (accessed on 15.11.2016).

  2. 2.

    http://www.ilo.org/dyn/normlex/en/f?p=1000:12001:0::NO::: (accessed on 15.11.2016).

  3. 3.

    http://www.ilo.org/dyn/normlex/en/f?p=1000:11200:0::NO:11200:P11200_COUNTRY_ID:102643 (accessed on 15.11.2016).

  4. 4.

    http://www.ilo.org/dyn/normlex/en/f?p=1000:11200:0::NO:11200:P11200_COUNTRY_ID:102871 (accessed on 15.11.2016).

  5. 5.

    http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_467653.pdf (accessed on 15.11.2016).

  6. 6.

    This Convention has been ratified by 178 countries.

  7. 7.

    This Convention has been ratified by 153 countries.

  8. 8.

    This Convention has been ratified by 164 countries.

  9. 9.

    This Convention has been ratified by 172 countries.

  10. 10.

    This Convention has been ratified by 175 countries.

  11. 11.

    This Convention has been ratified by 173 countries.

  12. 12.

    This Convention has been ratified by 168 countries.

  13. 13.

    This Convention has been ratified by 180 countries.

  14. 14.

    http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_413226.pdf (accessed on 15.11.2016).

  15. 15.

    http://www.ohchr.org/EN/Issues/Business/Pages/NationalActionPlans.aspx (accessed on 15.11.2016).

  16. 16.

    http://www.auswaertiges-amt.de/DE/Aussenpolitik/Aussenwirtschaft/Wirtschaft-und-Menschenrechte/NAPWiMr_node.html (accessed on 15.11.2016).

  17. 17.

    https://www.unglobalcompact.org/participation/report/cop/create-and-submit/active (accessed on 15.11.2016).

  18. 18.

    http://mneguidelines.oecd.org/database/searchresults/?hf¼10&b¼0&sl¼mne&q¼%28NCP%3A%28Germany%29%29&s¼desc%28mne_datereceived%29 (accessed on 15.11.2016).

  19. 19.

    http://www.iso.org/iso/home/standards/iso26000.htm (accessed on 15.11.2016).

  20. 20.

    Motives as to why companies sign codes of conduct can be categorized into four groups (Egels-Zandén 2009). First, to protect or improve the reputation of certain brands (Rühmkorf 2015, p. 1). Codes of conduct are supposed to strengthen a corporate culture committed to specific values, signaling to third parties that the company adheres to certain standards and does its best to prevent violations of labor and safety standards in its business activities. Second, codes of conduct and other CSR measures can be a way of avoiding governmental interference. They can be used, for example, to avoid a legal extension of corporate liability for working conditions to suppliers and subcontractors. Third, CSR measures can be associated with competitive advantages, such as quality signals, reduced insurance premiums, and better supply chain management (Bondy et al. 2004). This is the so-called business case. Finally, the motivation of companies to adopt codes of conducts can be driven by ethical concerns as a reason in itself (Egels-Zanden 2009, p. 533).

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Authors and Affiliations

  1. Institute of Law & Economics, University of Hamburg, Hamburg, Germany

    Felix Hadwiger

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  1. Felix Hadwiger
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Hadwiger, F. (2018). The Internationalization of Law: The Evolution of Labor Standards in Response to Globalization. In: Contracting International Employee Participation. International Law and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-71099-0_2

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  • DOI: https://doi.org/10.1007/978-3-319-71099-0_2

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  • Print ISBN: 978-3-319-71098-3

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