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This daylong discussion, attended by roughly 40 scholars and practitioners from universities, labor organizations, corporations and NGOs, focused on how companies can move beyond monitoring and compliance to build socially and environmentally responsible supply chains.

At two workshops in 2008, the group discussed a few key strategies, leading Josh Cohen and Rick Locke to seek funding for a new research center. These included:

  1. Scaling up codes of conduct
  2. Reinvigorating national regulation
  3. Combining labor standards and trade rules

The event on January 29th covered the following topics, summarized below:

Panel 1.   Recent research on ethical consumption

  • Michael Hiscox, Jens Hainmueller, Sandra Sequeira (Harvard)
  • Margeret Levi (University of Washington)
  • Yotam Margalit (Stanford University)
  • Dara O’Rourke (GoodGuide, UC Berkeley)

Selected findings:

  • The Average “Fair Trade” effect is 9%, based on a coffee experiment with Whole  Foods
  • Consumers are willing to pay some premium for social labels (7.3-13.1%)
  • Berkeley: Personal health and wellness and the environment outrank labor concerns for consumers of products listed on GoodGuide.com

Panel  2.   Best practices in the environmental area that might be carried over to labor/trade

  • Edgar Blanco (MIT)
  • Bonnie Nixon (HP)
  • Erica Plambeck (Stanford)
  • Charles Sabel (Columbia)

Selected discussion points:

  •  Compliance-based regulation no longer works; there are new roles for NGOs, government, and public-private partnerships in creating incentives for suppliers
  • Suppliers care most about volume and length of contracts; since not everyone is Wal-Mart, buyers may need to come together to encourage ethical behavior

Panel 3.   New regulatory strategies in labor markets in emerging economies

  • Salo Vinocur Coslovsky, Massachusetts Institute of Technology
  • Mary Gallagher, University of Michigan
  • Andrew Schrank, University of New Mexico
  • Rick Locke, Massachusetts Institute of Technology

Selected discussion points:

  • Evidence from Brazil shows that law enforcement operates in parallel with private auditors in monitoring suppliers, becoming “shock troops of sustainable development”; some issues require state regulation
  • There may be trade-offs between bureaucratic efficiency and equity in a compliance system, as in the Dominican Republic
  • In some cases, the state’s role is to delegate work so private sector can police more effectively

Panel 4.   Looking Forward

  • Caitlin Morris (Nike)
  • Marcela Manubens (Phillips-Van Heusen)

Selected discussion points:

  • Key issue is how to tie labor and environmental agenda together; for some companies, environmentalism is self-interest—materials like bamboo often resonate with designers. But who makes the bamboo shirt is less of an issue. One option is to derive cost savings from environmental policies and direct that money to programs for workers.
  • Big question: in an entry-level sector, how far across the spectrum from minimum or entry-level to living wage do we go? How do we measure progress? Is it a 3% increase in labor value /product each year?
  • Another issue in need of further exploration: where upgrading doesn’t reach lower down in the supply chain. There’s got to be a virtuous circle where technical upgrading and labor issues can be joined
  • Environmental issues have won the battle because regulatory environment incents companies to care about it, and consumers care, too—it’s become hip. Maybe what’s needed is to institutionalize the “triple bottom line” approach to business such that companies with good labor policies get tax breaks.

» Notes and Presentations (password protected)

Co-sponsored with the Global Supply Chain Management Forum

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Olena Nikolayenko (Ph.D. Toronto) is a Visiting Postdoctoral Scholar and the recepient of post-doctoral fellowship from the Social Sciences and Humanities Research Council of Canada. Her research interests include comparative democratization, public opinion, social movements, youth, and corruption. In her dissertation, she analyzed political support among the first post-Soviet generation grown up without any direct experience with communism in Russia and Ukraine. Her current research examines why some youth movements are more successful than others in applying methods of nonviolent resistance to mobilize the population in non-democratic regimes. She has recently conducted fieldwork in Azerbaijan, Belarus, Georgia, Serbia, and Ukraine.

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Olena_web.jpg PhD

Olena Nikolayenko is a recepient of the 2007-2009 post-doctoral fellowship from the Social Sciences and Humanities Research Council of Canada. Her research interests include comparative democratization, public opinion, social movements, youth, and corruption. In her dissertation, she analyzed political support among the first post-Soviet generation grown up without any direct experience with communism in Russia and Ukraine. She has a PhD from the University of Toronto, Canada.

At CDDRL, she examined why some youth movements are more successful than others in applying methods of nonviolent resistance to mobilize the population in non-democratic regimes. She has recently conducted fieldwork in Azerbaijan, Belarus, Georgia, Serbia, and Ukraine.

Selected Publications

  • 2008. "Contextual Effects on Historical Memory: Soviet Nostalgia among Post-Soviet Adolescents." Communist and Post-Communist Studies 41(2): 243-259
  • 2008. "Life-Cycle, Generational and Period Effects on Protest Potential in Yeltsin's Russia." Canadian Journal of Political Science 41(2): 437-460
  • 2007. "The Revolt of the Post-Soviet Generation: Youth Movements in Serbia, Georgia, and Ukraine." Comparative Politics 39(2): 169-188
  •  2007. "Web Cartoons in a Closed Society: Animal Farm as an Allegory of Belarus." PS: Political Science and Politics 40(2): 307-310
  • 2004. "Press Freedom during the 1994 and 1999 Presidential Elections in Ukraine: A Reverse Wave?" Europe-Asia Studies 56(5): 661-686
Olena Nikolayenko Visiting Scholar Speaker CDDRL
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Tocqueville's insight still holds: America and Europe are both children of the Enlightenment, but modernity has not pushed aside religion on this side of the Atlantic as it has in the "Old World." Why the gap, and why does it persist almost 200 years later?.

Josef Joffe is publisher-editor of the German weekly Die Zeit. Previously he was columnist/editorial page editor of Süddeutsche Zeitung (1985-2000).

Abroad, his essays and reviews have appeared in: New York Review of Books, New York Times Book Review, Times Literary Supplement, Commentary, New York Times Magazine, New Republic, Weekly Standard, Prospect (London), Commentaire (Paris). Regular contributor to the op-ed pages of Wall Street Journal, New York Times and Washington Post; Time and Newsweek.

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Stanford political science Professor Michael McFaul has been tapped by President Barack Obama to serve as special assistant to the president for National Security Affairs and senior director for Russian and Eurasian affairs at the National Security Council.

McFaul, who has been deputy director of Stanford's Freeman Spogli Institute for International Studies and director of its Center on Democracy, Development and the Rule of Law, was a senior adviser on Russia and Eurasia during Obama's campaign, and he continued to advise on foreign policy issues during the transition. He now joins the National Security Council headed by retired Marine Gen. James L. Jones.

"President-elect Obama was fortunate to have the benefit of Mike's counsel on a range of vital issues during the campaign—including dealing with a resurgent Russia," said Freeman Spogli Institute Director Coit D. Blacker, the Olivier Nomellini Professor in International Studies. "Now, from the White House, the president can call on Mike's expertise and experience in the region to build more constructive relationships with Russia, Eurasia and our allies across a broad strategic front."

McFaul is an expert on U.S. foreign policy, U.S.-Russian relations, political and economic reform in the post-communist world and democracy promotion. He is the author and editor of numerous books, including Revolution in Orange: The Origins of Ukraine's Democratic Breakthrough, which he co-edited with Anders Aslund; Between Dictatorship and Democracy: Russian Postcommunist Political Reform, which he wrote with Nikolai Petrov and Andrei Ryabov; and After the Collapse of Communism: Comparative Lessons of Transitions, which he edited with Kathryn Stoner-Weiss, a senior research scholar at the Center on Democracy, Development and the Rule of Law.

McFaul is a non-resident senior associate of the Carnegie Endowment for International Peace. He serves on the editorial boards of Current History, Journal of Democracy, Demokratizatsiya, Perspectives on European Politics and Society, Post Soviet Affairs and the Washington Quarterly. He has served as a consultant for numerous companies and government agencies and has testified before Congress on U.S.-Russian relations.

McFaul, the Peter and Helen Bing Senior Fellow at the Hoover Institution, is a frequent commentator on international politics and American foreign policy in the national and international media. He has appeared on all major television and radio networks, and his opinion pieces have appeared in the New York Times, Washington Post, Wall Street Journal, Los Angeles Times, New Republic, International Herald Tribune and Moscow Times.

McFaul earned bachelor's degrees in international relations and Slavic languages and literatures and a master's degree in Russian and East European studies from Stanford in 1986. He was awarded a Rhodes Scholarship and completed a doctorate in international relations at Oxford in 1991.

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One effect of the new Obama administration's global charm is that America could be let out of the environmental doghouse. The Obama plan to restart the economy is stuffed full of green incentives, and the new president has earned global cheers for his promise to cut the gases that cause global warming. But hope and change are not easy to implement in Washington, and the first big disappointment is likely to come later this year when the world's governments gather in Copenhagen to replace the aging and ineffective Kyoto treaty.

On climate issues America is less a nation than 50 different states, moving wildly at different speeds.

Pundits have been talking down the Copenhagen summit on the theory that the current financial crisis makes 2009 a tough time for governments to focus on costly and distant global goals like protecting the planet. In reality, the greenish tinge on nearly every economic recovery plan, even China's, show that this crisis offers green opportunity. The real reason Copenhagen will be a disappointment is that the new Obama administration can't lead until it first learns what it can actually implement at home. And delivering greenery in the American political system is harder than it looks-even when the same left-leaning party controls both the White House and Congress.

On environmental issues, America is barely a nation. Under a single flag it uneasily accommodates a host of states pushing greenery at wildly different speeds. In the 1970s and 1980s, this multispeed environmentalism propelled America to a leadership position. The key was truly bipartisan legislation, which allowed Washington to craft a coherent national approach. In fact, most of the major U.S. environmental laws did not arise solely from the environmental left but were forged by centrist Republican administrations working closely with centrist and left-leaning Democrats. Republican President Nixon created America's pathbreaking clean air and water regulations; Republican George H.W. Bush updated the air rules to tackle acid rain and other pernicious long-distance pollutants. In his more moderate second term, Ronald Reagan was America's champion of the ozone layer and helped spearhead a treaty-probably the world's most effective international environmental agreement-that earned bipartisan support at home and also pushed reluctant Europeans to regulate the pollutants.

Ever since the middle 1990s-about the time that the U.S. government was shut down due to a partisan budget dispute-such broad coalitions supporting greenery have been rare. In the vacuum of any serious federal policy, for nearly a decade the greener coastal states devised their own rules to cut warming gases. The United States as a whole let its green leadership lapse. (At the same time, the project to create a single European economy has shifted authority in environmental matters from individual member states into the hands of central policymakers in Brussels, where a coterie of hyperrich and very green countries have set the agenda. Europe, long a laggard on environmental issues, is now the world leader.)

The normal multispeed script was playing out on global warming as the Obama administration took power. Industry, worried about the specter of a patchwork of regulations, has lobbied for a coherent national strategy. But the Obama administration's first major policy on global-warming policy went in precisely the opposite direction: he reversed the Bush administration's decision that blocked California from adopting its own strict rules on automobile efficiency.

Today's challenge, which won't be solved by Copenhagen, is for Obama to stitch these many state environmental efforts together. That's no easy task. Global-warming regulation will probably have a larger impact on the nation's economy than any other environmental program in history, and any plan will have to allow enough room for some states to move quickly while also satisfying industry's well-founded need for harmony. Obama's Democratic Party controls both the White House and Congress, but that does not guarantee success. It will be difficult to craft a national policy that earns broad and bipartisan support while also taking the big bite out of the emissions that the rest of the world is hoping Obama will promise to the Copenhagen treaty. The difficulties aren't just in dragging along wary conservative Republicans. In fact, the most important skepticism about an aggressive national strategy has been from a coalition of centrist Democrats who fear the impact on jobs and economic growth.

One key to success will be crafting a deal with China and other developing countries to show that they, too, are making an effort. But serious efforts on that front are still in their infancy.

The big challenge for Copenhagen will be to find a way to allow negotiations to stretch beyond the unrealistic 2009 deadline while still keeping momentum. America's slowness in getting serious about global warming should be welcome because it is a contrast to its rushed behavior in negotiating the Kyoto treaty. At Kyoto, Bill Clinton's administration promised deep cuts in emissions without any plan for selling them at home, which is why the Bush administration could so easily abandon the treaty. Repeating that mistake would be a lot worse than waiting a bit for America to craft real leadership. If that's why Copenhagen falls short of the mark, then that's good news-real greenery, rather than fakery.

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Scott Rozelle is the Helen F. Farnsworth Senior Fellow in the Freeman Spogli Institute for International Studies. Dr. Rozelle received his BS from the University of California, Berkeley; and his MS and PhD from Cornell University. Before arriving at Stanford, Rozelle was a professor at the University of California, Davis (1998-2000) and an assistant professor in the Food Research Institute and Department of Economics at Stanford University (1990-98). Currently, he is a member of the American Economics Association, the American Agricultural Economics Association, the International Association for Agricultural Economists, the Asian Studies Association, and the Association of Comparative Economics. He also serves on the editorial board of Economic Development and Cultural Change, Agricultural Economics, Contemporary Economic Policy, China Journal, and the China Economic Review.

Dr. Rozelle's research focuses almost exclusively on China and is concerned with three general themes: a) agricultural policy, including the supply, demand, and trade in agricultural projects; b) the emergence and evolution of markets and other economic institutions in the transition process and their implications for equity and efficiency; and c) the economics of poverty and inequality.

In the past several years, Dr. Rozelle's papers have been published in top academic journals, including Science, Nature, American Economic Review, and the Journal of Economic Literature. He is fluent in Chinese and has established a research program in which he has close working ties with several Chinese collaborators and policymakers. He is the chair of the International Advisory Board of the Center for Chinese Agricultural Policy; a co-director of the Agricultural Issues Center (University of California); and a member of Stanford's new Food, Security, and the Environment Program.

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Faculty Co-director of the Stanford Center on China's Economy and Institutions
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Director of the Rural Education Action Program, Stanford Center on China's Economy and Institutions
scott_rozelle_new_headshot.jpeg PhD

Scott Rozelle is the Helen F. Farnsworth Senior Fellow at the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University. He received his BS from the University of California, Berkeley, and his MS and PhD from Cornell University. Previously, Rozelle was a professor at the University of California, Davis and an assistant professor in Stanford’s Food Research Institute and department of economics. He currently is a member of several organizations, including the American Economics Association, the International Association for Agricultural Economists, and the Association for Asian Studies. Rozelle also serves on the editorial boards of Economic Development and Cultural Change, Agricultural Economics, the Australian Journal of Agricultural and Resource Economics, and the China Economic Review.

His research focuses almost exclusively on China and is concerned with: agricultural policy, including the supply, demand, and trade in agricultural projects; the emergence and evolution of markets and other economic institutions in the transition process and their implications for equity and efficiency; and the economics of poverty and inequality, with an emphasis on rural education, health and nutrition.

Rozelle's papers have been published in top academic journals, including Science, Nature, American Economic Review, and the Journal of Economic Literature. His book, Invisible China: How the Urban-Rural Divide Threatens China’s Rise, was published in 2020 by The University of Chicago Press. He is fluent in Chinese and has established a research program in which he has close working ties with several Chinese collaborators and policymakers. For the past 20 years, Rozelle has been the chair of the International Advisory Board of the Center for Chinese Agricultural Policy; a co-director of the University of California's Agricultural Issues Center; and a member of Stanford's Walter H. Shorenstein Asia-Pacific Research Center and the Center on Food Security and the Environment.

In recognition of his outstanding achievements, Rozelle has received numerous honors and awards, including the Friendship Award in 2008, the highest award given to a non-Chinese by the Premier; and the National Science and Technology Collaboration Award in 2009 for scientific achievement in collaborative research.

Faculty affiliate at the Center on Democracy, Development, and the Rule of Law
Faculty Affiliate at the Walter H. Shorenstein Asia-Pacific Research Center
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