The Information Architecture of Corporate Accountability Inside Corporate Reporting Regimes in Global Value Chains

What Trajectory for the Regulation of Transnational Corporate Responsibility?

The framework for transnational corporate responsibility along global value chains (GVCs) is in flux. While the legal mechanisms have generally become tighter in recent years, the development follows no uniform trajectory. With scattered, disparate, and overlapping initiatives and regulatory regimes currently coexisting, it seems an open political question which regulatory paradigm will prevail in the medium and longer term. This chapter zooms in on specific transitional moments in the regulatory evolution of corporate responsibility. The dominant narrative portrays this evolution as roughly two decades of linear progress from ‘voluntary’ (deemed ‘ineffective’) corporate social responsibility to ‘mandatory’ (and hence deemed more ‘effective’) instruments, with each stage reacting to deficits of the previous one by imposing tighter standards, leaving fewer gaps, and allowing stricter enforcement. While this sequential understanding of corporate responsibility with each stage implementing selective improvements indeed captures an important dynamic within corporate responsibility, it paints an incomplete picture. First, it stresses rupture over continuity and thereby distracts attention from shared and structural deficits of the regulation of corporate responsibility across its different ‘stages’. Second, it assumes regulatory discourses of corporate responsibility to be largely self-referential and isolated from broader regulatory developments in other fields. These two limitations have deflected the debate from exposing certain structural difficulties in regulating complex value chains, as well as the deeper political dynamics at play in framing regulatory ‘innovations’.

Against this background, this chapter examines the example of reporting regulation as deployed to address different dimensions of corporate responsibility, including modern slavery. Among the substantive goals on the agenda of corporate responsibility, curbing modern slavery is arguably the most intricate. Intrinsically linked to and sustained by the business model of offshore capitalism, modern slavery forms a ‘viable management practice for many enterprises’ (Crane, 2013: 49).