Part 5 (12%): Address the global garment industry’s record in terms of: 1. Corporate Social Responsibility (the concept); 2. Corporate Social Responsiveness (in practice); 3. Corporate Social Performance (auditing, reporting, communication). Corporate Social Responsibility and the Global Garment Industry Through Corporate Socially Responsibility, a company voluntarily operates the corporation economically, legally, ethically, and philanthropically. The organization makes sure that each employee is critical and running operations morally. Most companies that operate in this manner tend to be quite successful because if the company were to manage irresponsibly, it would affect the business tremendously. Engaging in Corporately Social …show more content…
They have much likely paid their workers less than minimum wage, and made profit for different companies because they do not have to pay the $11.25 per worker like they have to in North America for over 1000 workers. Which is why, garment industries have to be economically aware if this is fair for the worker and if it wont effect their company’s reputation. (http://www.ide.go.jp/English/Publish/Download/Report/2011/pdf/410_ch3.pdf) Legal responsibility obligates the organization to follow certain rules and regulations of the countries current governing system (Crane & Matten, 2010). For every company, they have to follow the rule of the governing country. Usually the garment industry, their main concern is child labour. Despite the promises the retailers made to improve conditions after the Rana Plaza, where 1,130 people had passed away, young 13 year old children work up to 11 hours a day, and are kicked, slapped, and hit with a used fabric roll as well as abused with verbal threats and insults. (http://www.theguardian.com/world/2014/feb/06/bangladesh-garment-factories-child-labour-uk). As you can see companies only really care about the profits though child labour is illegal; but in Bangladesh since it isn’t, companies do to this under the table, in order to maintain profits. Therefore, most companies do not deal
Primark, an Irish clothing retailer company was set up and headquartered in Dublin in 1969. Nowadays, there are over 250 stores across the United Kingdom, Ireland, Europe and the United States. Moreover, Primark operates with about 700 suppliers in China, India, Bangladesh, Turkey and Eastern Europe. Primark takes corporate social responsibility for the shareholders, owners, customers, suppliers as well as employees. Corporate social responsibility is that a company not only creates profits for the shareholders, but also undertakes the social responsibility for customers, employees and environment, including complying with business ethics, rights of workers and the rules of environmental protection. In order to develop continuously, corporate social responsibility plays an significant role in a company, which drives stakeholders have reliance on the company. This essay focuses on the ways in which Primark taking its duty to society and the ways in which the company should have done better.
Social responsibility is generally regarded as a duty of an organization’s management towards the benefit and well-being of the society in which it is engaged. The organization must behave ethically considering the social, cultural, economic and environmental issues.
Firstly, I would like to explain what Corporate Social Responsibility is. “It is a company’s sense of responsibility towards the community and environment (both ecological and
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. (World Business Council for Development, 2016)
Corporate Social Responsibility are actions taken by a corporation that have positive and lasting impact for all stakeholders associated with the organization, seeking to strike a balance between profits and helping to establish lasting investment in the community (Carrol, 2015). In the 1980’s, then President Reagan challenged the business community to take on more responsibility to address social problems (Carrol, 2015). Socially responsible actions can benefit local communities as well as the greater societal good.
b. There are five ethical criteria created by De George for Multi National Enterprise when operating in LDC. The MNE must not do harm in purpose, in this case, Target and Kmart have already signed the Bangladesh Petition of Building and Fire Safety. By signing this contract, it means they protect their workers and keep them in the safe working environment. On the other hand, Target and Kmart have done more bad than good things for the LDC. This breaks the Ethical Guidelines. It can be seen when Target and Kmart paid the wages very low in the LDC. They will make the host country disadvantage in order to reap all the profit for them. Moreover, Target and Kmart did not respect the right of humanity and others in the LDC country since they pay very low
5. Oxfam claims that the wages paid to workers in the garment factories are far too low and should be boosted significantly. Is Oxfam right? Is it a human rights violation to source goods from factories where wages are so low? If higher wages are implemented what might happen to the
Businesses should have certain ethical guidelines to enforce manufacturers to adhere to or refuse to do business with these manufacturers if certain standards cannot be met. However, the only thing Wal-Mart is interested in is making a profit and apparently at any cost and in any conditions. There should be more follow through with government regulations and importing of said merchandise to discourage such participation in such practices. While other retailers have assisted to make conditions better in finding solutions to make these factories better for their workers and want to contribute financially to improve the environment, “but Wal-Mart declined to participate in the 2011 in relation to the fire related deaths and injuries, because it would increase the company’s cost documented by Senior Official of Bangladesh’s ministry of Labor and Employment” (Sethi).
Such worldwide known brands like Forever 21, Wal-Mart, H&M, and Apple founded guilty in cases of child labor scandal. From the article “10 Companies That Still Use Child Labor” written by Hannah Lamarque, it states that Wal-Mart large shipment of products is founded in Bangladesh sweatshop after their major collapse. Moreover, it also conveyed that the child laborers were enforced to work up to 19 hours a day and only waged around $20 per month. Even though the laws and regulation are established in the 19th and 20th century to stop any causation of child labor, it did not prevent the companies from finding its way to execute it
MNC’s main objective of profit maximization is the key factor of sweatshops sacrificing the well being of their workers for the sake of cutting down cost to the least value possible. Chittaranjan Locomotive Works (CLW) did an investigation on some electronic manufacturing industries in China and discovered that these factories had breached various Chinese labor laws and social responsibility of codes of conduct (PR Newswire 2011). Schorr and Wong (2013) explained that even though developing countries such as Thailand, Philippines and China have much lower minimum wage per
Social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. If the action or decision causes harm to society or the environment then it would be considered to be socially irresponsible. Being socially responsible means that people and organization must behave ethically and sensitivity towards, social, cultural, economic, and environmental issues. Striving for social responsibility helps individuals, organization and government to have a positive impact on development, business and society. Often, the ethical implication of decision/action are overlooked for personal gain and the benefits are usually material. This frequently manifest itself in companies that
A corporation that says it is socially responsible, claims that they are concerned for society's welfare; which also includes the environment, because now days, we are a lot more concerned about our environment and how everything affect it. The corporation will make sure to insure those values within the company and also to its partners. ("Social responsibility in Marketing," 2012 - 1998) Also, if a corporation says it is ethically responsible and it really is, it shows to their customers and partners their integrity
Corporate social responsibility emphasizes the participation of the organization in a larger society and its responsibility to support good causes. It emphasizes corporate citizenship, philanthropy, and community support and recognizes community-based obligations and responsibilities.
CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit.
Corporate social responsibility is the voluntary stance or set of actions from a corporation that demonstrate a contribution to a better society and a cleaner environment. Corporations are already required to operate within the law, but laws do not always protect all people or individuals who will be affected by the corporation’s actions. In addition to this, it is very common for special interests to play a part in legal decisions through lobbying efforts, so it is assumed to be an additional effort for a corporation to be socially responsible. Being socially responsible essentially comes down to being considerate and calculated in the decision making process, paying attention to the consequence of every action. In the ethical decision making model, there are two particular steps that I believe to be of greater importance than the others. The first would be that of