Stitched by small hands: Explaining firm-level exposure to child labour through institutional strength and CSR engagement
Keywords
Loading...
Authors
Issue Date
2025-06-27
Language
en
Document type
Journal Title
Journal ISSN
Volume Title
Publisher
Title
ISSN
Volume
Issue
Startpage
Endpage
DOI
Abstract
This thesis examines how national legal institutions affect firm-level exposure to child labour risk in
global fashion supply chains and whether corporate social responsibility (CSR) moderates this
relationship. Drawing on institutional theory and literature on transnational labour governance, firmlevel
ESG data are combined with national law indicators. Using panel data from 358 OECD-based
fashion firms (2007-2020), the analysis shows that institutional strength in firms’ home countries alone
does not reduce the risk of child labour. However, CSR engagement significantly moderates this
relationship: companies with stronger CSR engagement are less likely to be associated with reported
child labour incidents, especially when operating in countries with weaker institutional environments,
suggesting that CSR may reinforce or counterbalance regulation, depending on context. This thesis
contributes to a more comprehensive understanding of the effectiveness of CSR engagement, embedded
in national governance environments. These findings are particularly relevant in supply chains where
regulatory frameworks are designed in firms’ home countries, while labour rights violations typically
occur in host countries with weaker enforcement. The thesis offers practical insights for policymakers,
firms and civil society organisations seeking to improve labour conditions: regulatory efforts are most
effective complemented by credible CSR engagement, especially in environments with limited
institutional capacity.
Description
Citation
Supervisor
Faculty
Faculteit der Managementwetenschappen