Compliance capitalism and global supply chains

This article examines the future of the global economy by studying recent changes to supply chains. It argues for the emergence of an alternative economic system that compels producers and suppliers to forge relationships that exceed strictly economic terms. These changes are driven by a broad range of compliance mechanisms that supplement regulation by the state, involving mandatory reporting of conditions of work and environmental impacts, including greenhouse gas emissions; concern about corporate reputations; social movement pressure; and consumer preference. This does not imply that corporations will change their character or ignore their bottom line. Instead, what this article refers to as ‘compliance capitalism’ forces corporations to acknowledge new obligations that necessitate changing their behavior. The article is part of a special commentary section of the journal that includes responses to the arguments made here and a co-authored introduction by Jatin Dua and Stuart Kirsch.