Policy Instruments and Co-Regulation for the Sustainability of Value Chains
Globalization and outsourcing make value chains more international. Attention for sustainability, both from companies and from governments is growing. However, due to globalization and outsourcing, relevant sustainability issues take place increasingly outside the fences of the company that puts a product on the market. Many sustainability issues take place at the origin of the value chain, usually under the responsibility of other companies, and often in countries with poor governance structures. This situation leads to minimal attention for sustainability, either because of the lack of proper legislation in the country of origin, or because of insufficient enforcement of existing legislation. This is a complex, international problem currently on the agenda of governments, multinational and industrial companies.