Decent work is one of the most challenging aspects in advancing social sustainability. Voluntary supply chain tools have long aimed to improve decent work and wages in supply chains. Yet, there has been little research to understand their impacts: research is crucial for enhancing effectiveness and aligning voluntary and mandatory measures.
Addressing the gap
Despite the emergence of numerous voluntary initiatives over the past three decades, few efforts have been made to systematically review their effectiveness in achieving decent work.
A recent systematic review study authored by Dafni Skalidou and Carlos Oya published by Evidensia, in partnership with ISEAL, IDH, and Rainforest Alliance, addresses this gap.
The review focuses on the agriculture and apparel sectors and investigates the impact of supply chain sustainability approaches on different elements of decent work, including wages, occupational health and safety, working terms and conditions, and worker empowerment.
The current picture
Existing evidence predominantly focuses on a few programmes. Coffee is the most studied commodity, followed by bananas, tea, cocoa, and horticulture. Geographically, Asia receives the most attention for apparel, while Africa is a focal point for agriculture.
Insights on effectiveness of voluntary tools
About one-third of the reported effects of voluntary tools in both agriculture and apparel sectors shows positive impacts on decent work outcomes, particularly in the realm of employment conditions and worker representation.
In agriculture, working terms and conditions showed the highest proportion of positive effects. However, more needs to be done to improve wages, which showed little improvement.
Factors influencing effectiveness
The effectiveness of voluntary tools can be limited by several factors, including the presence of large numbers of vulnerable workers employed in both the agriculture and apparel sectors.
These workers, who include women, smallholder farmers, or undocumented migrants, are particularly vulnerable to exploitation and often do not benefit from formal supply chain interventions.
The review found that engagement with established trade unions and national labour institutions is central to more sustained success across the different areas. In addition, care needs to be taken to reduce the negative impacts of certification and audit fatigue.
Other factors that can significantly impact the success of voluntary tools, include public governance and the national enforcement of labour standards; as well as, market dynamics and profitability pressures, which can impact conditions of employment, with tighter margins often leading to poorer working conditions.
Recommendations for voluntary tools
- Enhance monitoring of labour standards, especially in smallholder agriculture.
- Advocate for living wage campaigns and move beyond minimum wage standards.
- Incorporate interventions that support worker representation through existing structures like trade unions.
- Lobby for enforceable supply chain legislation in both consumer and producer countries.
- Tailor interventions to address specific sectoral challenges and consider global binding agreements.
- Improve the reliability and efficacy of audits through more comprehensive independent assessments.
The Evidensia review underscores the potential of voluntary supply chain tools in the promotion of decent work, highlighting critical knowledge gaps in the evidence base, and providing key recommendations for sustainability systems to advance decent work outcomes.
For a more detailed summary of the review, visit the researchers’ article on Evidensia.