Reassembling social defragmented responsibilities: the indecent labour footprint of US multinationals overseas

Multinational corporations (MNEs) have been at the forefront of the geographical disintegration of production chains in search of lower salaries, among other reasons, which led to a global race to the bottom in labour standards. Therefore, significant amounts of indecent work are currently embodied in MNEs' global value chains, compromising not only the brands' corporative image but also the achievement of the Sustainable Development Goals. In this work, we shed light on this matter by estimating the indecent-work-conditions related impacts linked to the foreign activities of MNEs from the United States. Using a socially extended MRIO model that integrates three social indicators (forced labour, fatal and nonfatal occupational injuries), we found that these activities show increasing trends between 2009 and 2013 on indecent labour, contributing with 1.1%-1.3% of the global cases. United States affiliates located in India, China and Brazil, show the highest ratios per unit of value-added.

Automated summary

Multinational corporations have contributed to a global race to the bottom in labor standards by seeking lower salaries, which has led to indecent working conditions in their global value chains. Foreign activities of US MNEs in countries like India, China, and Brazil show increasing trends in indecent labor, contributing to 1.1%-1.3% of global cases.