Chinese companies that voluntarily adopt standards to improve workplace conditions are more likely to attract reputation-conscious buyers and boost exports to Western markets, according to new research from Cornell University.

In recent years, pressure from activists has pushed businesses to take up codes of conduct, certification programs, and other forms of self-regulation. These tools aim to curb harmful practices, improve supply chain accountability, and protect corporate reputations.

But doubts remain. “Many scholars are skeptical about whether certification systems in developing countries are trustworthy or free from corruption,” the researchers note.

A mixed picture

Their findings reveal a mixed picture. Companies with certifications such as SA8000—a global standard for socially responsible practices—tend to pay higher wages before certification than similar firms without it. Certification also leads to higher sales in markets with reputation-sensitive buyers. Yet the study found no evidence that certification boosted wages over time. “Self-regulation cannot replace collective bargaining or government regulations,” the authors caution.

The researchers analyzed records from Social Accountability International, tracking 199 Chinese companies certified between 1998 and 2008. They matched this data with government surveys to measure wages and export revenues. The results showed that while certification opens doors to global markets, its impact on workplace conditions often stalls after the initial push to meet standards.

“Firms work hard to pass the bar for certification,” the authors explain, “but once certified, they focus on exporting more rather than improving workers’ wages or becoming more socially responsible.”

The study highlights both the promise and limits of voluntary standards. While self-regulation can boost exports, it often falls short as a tool for advancing workers’ rights.