Abstract
Stakeholders in global value chains (GVCs) commonly argue that factory managers will choose humane working conditions if they can be persuaded that social compliance improves firm performance. Yet, despite evidence that humane conditions increase productivity, product quality and on-time delivery, inhumane conditions in GVCs persist. Evidence from a sample of Better Work factories in Vietnam, Indonesia and Jordan indicates that achieving social compliance may be costly, offsetting productivity benefits. A positive impact on profits depends on international buyer sourcing practices including higher output prices. The essential contribution of buyers in determining working conditions was confirmed during the COVID-19 pandemic.