The Impact of Private Standards on Corporate Social Responsibility (CSR) Compliance and Rural Workers' Motivation in Developin
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The Impact of Private Standards on Corporate Social Responsibility (CSR) Compliance and Rural Workers’ Motivation in Developing Countries: Evidence from GlobalGAP Certified Mango Farms in Pakistan By GHULAM AHMAD AZAZ BA., MBA. Director of Studies: Professor David Crowther Supervisor: Dr. Leburn Rose This thesis is submitted to the Cardiff Metropolitan University in fulfilment of the requirements for the degree of DOCTOR OF PHILOSOPHY 2018 1 Acknowledgement The journey of this thesis has been interwoven with joy, sorrow, and excitement. It has been a unique and engaging experience, and I have been privileged to receive immense support throughout. Throughout this investigative process, many people have shown their willingness to assist and I am immensely grateful to those who have gone out of their way to support me whenever and wherever I sought advice. Unfortunately, it is not possible for me to name each and every person who contributed to the development of this research project. Undoubtedly, I will not be able to fully express the extent of my gratitude to all who deserve it and thus, I will keep it brief. First of all, I would like to thank my supervisory team, my director of studies Professor David Crowther and my supervisor Dr Leburn Rose. They were always there to offer their guidance and support. Their combined experience and enthusiasm to engage and share this knowledge with me has been remarkable, and I feel lucky to have had such an amazing supervisory team. I also wish to thank the administrative team of LSC for their continuous efforts and support; it would be unfair to not recognise the support they offered through regular communications. I would also like to thank my colleague Amy Hillier for support in proofreading this thesis. I would like to thank my family. In particular, I would like to offer my thanks to my mother Hamda Khizer, who died during the second year of this study along with her ambition to see her son become a doctor. I also like to thank my wife Ayesha and my two sons, Arham and Ehsan for their cooperation and support. Developing this thesis presented a tough and all-absorbing task, but it was not without the unqualified encouragement of my family that I was able to tackle the challenges I encountered head on. 2 Abstract This study examines the role of a private standard (GlobalGAP) on corporate social responsibility (CSR) compliance in the Pakistani mango industry and how this compliance affects rural workers‘ motivation. Pakistan is the fifth largest mango producer in the world and the fourth largest exporter in global mango trade, also mango is the biggest fruit crop within the country. Mango trade is subject to trade terms, where buyers decide the conditions of trade agreements by means of codes of conduct. The key dimensions of the codes involved in agro-food trade are food safety, traceability, workers welfare and environmental consideration, issues which are all connected with CSR. Private standards ensure compliance with these codes of conduct. This study draws on interviews and a questionnaire survey with the certified mango producers and farm workers in the Punjab province of Pakistan. The mango industry also involves other stakeholders such as government institutes and NGOs; interviews were also conducted with their representatives. Given that this study is an impact assessment research, the researcher designed a theoretical framework using a mixed method approach to investigate the rationale behind acquiring the GlobalGAP standard by the mango growers in Pakistan and what impact (if any) this shift has generated with regards to the farm workers‘ job satisfaction and motivation. This study is the first to empirically examine good agricultural practices in Pakistan and evaluate their impact. This study shows that private standards play a significant role in ensuring compliance, and CSR practices implemented through them were found to be positively related to the rural workers‘ job satisfaction and motivation. Furthermore, this study has made separate contributions to theory, methodology, and practice. The production of the synergistic model for improving compliance is among the key highlights of the study. The findings of this study can extend to other agriculture and primary production industry workers in Pakistan and even beyond to other developing countries‘ rural agriculture workers. Key Words: CSR, Private Standards, Developing Countries, Food Safety, Working Conditions, Pakistan, Mangoes, Ethical Sourcing, GlobalGAP, Motivation, and Rural Workers. 3 TABLE OF CONTENTS Declaration ................................................................................................................... 1 Acknowledgment ......................................................................................................... 2 Abstract ........................................................................................................................ 3 Table of Contents ......................................................................................................... 4 List of Acronyms ....................................................................................................... 11 List of Tables, Figures and Images ............................................................................ 13 CHAPTER 1 .................................................................................................................. 15 INTRODUCTION AND OVERVIEW OF THE THESIS ........................................ 15 1.1 Introduction .......................................................................................................... 15 1.2 Background and Context ...................................................................................... 15 1.3 Problem Statement and the Existing Gap............................................................. 18 1.4 Role of Private Standards ..................................................................................... 19 1.5 GlobalGAP ........................................................................................................... 20 1.6 CSR Codes Implementation and Challenges for GlobalGAP .............................. 20 1.7 Research Questions .............................................................................................. 21 1.8 Research Aim ....................................................................................................... 21 1.9 Research Objectives ............................................................................................. 22 1.10 Methodology ...................................................................................................... 22 1.11 Contribution ....................................................................................................... 23 1.12 Summary ............................................................................................................ 23 CHAPTER 2 .................................................................................................................. 25 RESEARCH CONTEXT AND PAKISTAN .............................................................. 25 2.1 Introduction .......................................................................................................... 25 2.2 Research Setting and Pakistani Context ............................................................... 25 2.3 Basic Information About Pakistan ....................................................................... 25 2.4 Pakistan (An Agricultural Country) ..................................................................... 26 2.5 CSR in Pakistan ................................................................................................... 29 2.5.1 CSR Through Agro-Food Standards In Pakistan ...................................... 32 2.6 Global Mango Trade ............................................................................................ 35 2.7 Pakistani Mango Industry .................................................................................... 38 2.8 Location Analysis................................................................................................. 44 4 2.9 Summary .............................................................................................................. 46 CHAPTER 3 .................................................................................................................. 48 LITERATURE REVIEW ............................................................................................. 48 3.1 Introduction .......................................................................................................... 48 3.2 Corporate Social Responsibility ........................................................................... 48 3.2.1 History of CSR .......................................................................................... 53 3.2.2 CSR in Practice .......................................................................................... 54 3.3 CSR, Globalisation and Added Stakeholders ...................................................... 55 3.4 Supply Chain and CSR ....................................................................................... 60 3.5 Global Value Chains ............................................................................................ 63 3.6 CSR Challenges in Global Value Chains ............................................................. 64 3.7 Ethical Sourcing ..................................................................................................