MNEs’ AND GLOBAL VALUE CHAINS: THE DYNAMIC OF FAST FASHION INDUSTRY AND THE IMPACTS ON LABOUR RIGHTS AND PRACTICES. THE CASE STUDY OF INDITEX

Abstract

Multinational enterprises impact human rights wherever and however they operate. By offshoring activities in low cost economies whether local Governments are unable or unwilling to enforce national regulations, MNEs take advantages of States’ weaknesses as wages set below the poverty line, poor infrastructure, child labour, unsafety working conditions, less environmental and social concern, corruption often violating fundamental human rights. The economic conditions under which Developing Countries are lying and the desperate need to attract and retain investors and capitals create a gap between what is socially acceptable by international standards and the actions MNEs and local Governments take: workers appear to be victims of corporate human rights abuses, finding themselves trapped between two actors who do not have interest in making things better. International Organizations promote the respectfulness of fundamental human being and workers’ rights and prevent their abuses by creating standards and guidelines able to influence MNEs behaviour. The blind spot is constituted by the sphere of efficiency and effectiveness of these provisions: even though standards might have both binding and non-binding effects, they focus on how multinationals perform and the compliance with standards while not considering the type of relation MNEs have with third-parties indirectly involved within enterprise’ value chain. Activities assigned to third-party suppliers appear as being external to the firm while essential for the ending output. The analysis continues highlighting the relevance fast fashion industry is globally acquiring. Even though Developed Countries’ Governments are now working to improve and extend national regulations MNEs global value chain as a whole (including third-parties), the issue has also a socio-cultural overture; consumers choices are driven by the cost of products: the lower the price, the higher the consumption.