A Compliance-Based Future in Cambodia's Garment Sector Supply Chains
This report explores the impact of formal standards for corporate practices on labor, environmental, corruption, and governance standards on the Cambodian garment industry. It introduces the concept of a national level multistakeholder commission that could adopt the mission of improving standards through mutual consensus.

Key findings in this report include:
• The garment sector is a buyer-driven value chain, meaning that the decisions of brands shape the nature of activities that occur in their supply chain.

• Numerous governments are in the process of implementing due diligence laws that require brands to ensure social and environmental standards are met throughout their supply chains.

• Countries that are heavily reliant on garment exports, such as Cambodia, face a decision on how to adapt to these changing market conditions. Adaptation to new levels of due diligence requires coordination across the supply chain, but the complexity of stakeholders in the Cambodian garment sector means that extensive coordination is difficult, and a new multi-stakeholder model is required.


• A national level multistakeholder commission could be created to agree on social and environmental impact standards, here termed sustainability standards, that both satisfy due diligence requirements and meet the negotiated needs of stakeholders. This shared responsibility approach can ensure that new sustainability standards are actively negotiated and are also enforceable.


• Such decisive action in a coordinated way can benefit not only Cambodian businesses, but also workers, manufacturers, and the environment. The lack of a shared legal framework for determining
sustainability standards is likely to make the process more inefficient and could lead buyers to move to other countries where fewer risks exist and legal frameworks for setting and maintaining sustainability standards are easier and more efficient.