Multinational enterprises dominate the governance of global value chains, such that according to the concept of political corporate social responsibility, they are responsible to address governance gaps throughout the chains, even at the level of their independent suppliers. In practice, MNEs often struggle to cope with the complexity of these governance gaps, and PCSR does not provide a clear definition nor offer guidance for how to analyze and address them. By adopting the notion of governance mechanisms from GVC literature, this (...) study proposes a more nuanced view, in which governance gaps result from inactive, ineffective, or inequitable governance mechanisms adopted by relevant actors, rather than a complete absence of governance. MNEs, through their governance mechanisms, commonly create governance gaps. This study distinguishes different types of governance mechanisms to create a typology of governance gaps, such that it contributes to the literature on PCSR by offering a more refined understanding of governance gaps, along with a means to identify mechanisms to address them. Furthermore, it contributes to the literature on GVCs by defining governance-related terms and adding an ethical perspective on MNEs’ global business conduct. To illustrate the typology, this article presents the case of low wages for workers in the textile industry and efforts by H&M to deal with this governance gap. (shrink)

In combining the micropolitics approach in international management, the industrial relations literature and business ethics, this article conceptualizes global framework agreements as an alliance between central CSR managers of transnational corporations and central actors within trade unions to monitor subsidiaries in the implementation of CSR policies. The empirical investigation, based on the qualitative analysis of ten French multinational companies, confirms the relevance of such a conceptualization. It particularly shows that central CSR managers hope mobilizing the union network to increase their (...) capacity to supervise subsidiaries. Over there, it helps understanding concrete mechanisms adopted to implement global framework agreements since, in some of the studied cases, the managerial and union channels are coordinated precisely to strengthen this capacity. It, then, highlights the procedural nature of policies regarding global framework agreements. Overall, this paper examines the conditions necessary for mobilization of the union network and suggests avenues for future research. (shrink)