The Electronic Industry Code of Conduct: Private Governance in a Competitive and Contested Global Production Network

Abstract

Manufacturing activities in the electronics industry are organized in complex global production networks (GPNs) led by a variety of branded firms. Increasingly, considerations related to private governance and the use of codes of conduct and standards have emerged as important to the management and coordination of GPNs. An example is the Electronic Industry Code of Conduct (EICC), which is an attempt by the electronics industry to harmonize social, environmental and other conditions throughout its supply chain. This paper describes how the EICC came into being, and how inter-firm and non-firm relations and dynamics shape GPN governance outcomes. It shows resource constraints, changing power dynamics among firms and contestation by external stakeholders to be important factors influencing the implementation of private governance measures. Findings from interviews conducted with EICC members, including manufacturing sites located in Penang, Malaysia, and external stakeholders inform the discussion.