1 Global Value Chains, Industrial Clusters, and CSR:

International organizations, bilateral aid agencies, national governments, and local business associations are increasingly trying to incorporate social and environmental concerns in their interventions aimed at enhancing the competitiveness of industrial clusters in the developing world. This happens at a time when many of the key export-oriented industries in the developing world are coming under immense pressure for the implementation of social and environmental standards from foreign buyers. Several industrial clusters-geographical concentration of firms working within the same industry- in South and East Asia have responded to these challenges through joint action initiatives, thus assuming new social and environmental responsibilities. The purpose of this paper is two-fold: (a) to make an initial theoretical exploration of the key linkages between the global value chain, industrial cluster and CSR literatures, outlining key themes for future research within this area, (b) with reference to recent fieldwork, to empirically investigate the potential, limitations, and actual impacts of collective action on supplier competitiveness, working conditions, and environmental pollution within industrial clusters operating in the Pakistani leather tanning industry. The paper finishes with a discussion of key policy implications for future CSR interventions in industrial clusters