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May 7, 2021
案例分析代写 The implementation of labor standards that are proposed by ILO ameliorates the working conditions of the labor in the developing countries.
1.
International labor and environmental standards have always been in line with globalization. However, whether a multinational company should abide by the international labor and environmental standards raises many other questions such as are these multinational companies responsible for the employees of their subcontractors or not? As we see in the case, Nike was catapulted to take responsibility for their violations of international standards by NGOs. Thereby, one can perceive the role of international labor and environmental standards in keeping multinational companies to act ethically by following these standards. The international standards ensure the fulfillment of corporate social responsibility by multinational companies.
These international and environmental standards are the fundamental governmental tools that implement labor and environmental laws after consultation with workers, employers. These policies conform to the internationally conceded standards. In many countries, international standards are implemented after ratifying the ILO convention. The purpose of international laws is to harmonize the national law and practice, ratification has further proceeded with the implementation of the international standards. 案例分析代写
In the case of Nike, we see at multiple occasions since the 1980s Nike was pointed out for violation of international standards by various NGO and non-profit organizations. They also forced Nike to accept their responsibility for different environmental and labor problems which were detected at their supplier’s plants. Nike was denying all these responsibilities before but organizations like WTO and ILO ensured compliance by globally renowned brand Nike (ILO, n.d.).
2.
The implementation of labor standards that are proposed by ILO ameliorates the working conditions of the labor in the developing countries. On contrary, they also increase the production cost which is not acknowledged. This is a group that believes that countries that fail to acknowledge the labor and environmental standards glean unfair competitive advantage over the countries that ratify the international standards. The unfair competitive advantage is characterized by poor labor conditions, market failures whereas the ratification of ILO labor standards increases the cost of production and decreases the competitive advantage of the country. As depicted in the given case, when child labor policies were implemented in Pakistan the cost of production increased for Nike and other multinational companies who had suppliers in Pakistan.
The suppliers demanded more money and Nike had to pay more to meet the international standards. The increased cost of production means diminished competitive advantage of the country. Countries like Pakistan and Vietnam were relishing competitive advantage due to child labor and no implementation of minimum wage law. Thus their cost of production was low as a result of which companies like Nike got attracted enhancing the overall competitive advantage of the country. However, the implementation of international standards took away the competitive advantage of these companies such as Pakistan and Vietnam.
The diminished competitive advantage explicitly affects the economic development of the country as the production has decreased overall and the country has lost foreign direct investment. Competitive advantage is a driving force for economic development which refers to the creation of wealth. The studies have already depicted that international differences in productivity and price level are what bring competitive advantage in the countries (Flanagan, 2002).
3. case study代写
Indeed, the improved labor and environmental conditions bring long-term competitiveness within the global supply chains. The workplace safety and health of the workers are important factors for economic development. If a workforce is not healthy enough for physical work their marginal productivity will mitigate over time. Then, despite the non-implementation of the labor standards countries will face a downfall in their competitiveness due to poor labor conditions in long term. The compliance to the labor standards attracts more reputation sensitive international buyers ameliorating the overall economic development of the country in a long term. Neglecting the labor standards affects competition in the short term if a country does not seek alternative ways for production which could only be done by innovation. Countries should pay attention to their working conditions and try to innovate in terms of their work safety measure and other working conditions. 案例分析代写
This will improve the overall production of the country and help them to gain a competitive advantage for the long term. For instance, in the given case when Nike realized their mistake and face serious criticism they started new staff and training by making several new departments that were created to strengthen the production and compliance of the company. Nike hired specialized people that were specifically dedicated to labor and environmental standard compliance. Nike increasingly started monitoring its suppliers. These inspection efforts helped them to become socially responsible. Over time, the internal expertise of the company increased and also improved their relations with the non-profit organizations. All these efforts helped Nike to revive its image by improving its damaged reputation. Through all these long inspections, monitoring and auditing, Nike was finally able to rule out the use of petroleum based chemicals in their footwear production (ILO, n.d.).
4.
The development of international standards is done by ILO through a unique legislative process with the collaboration of governments of the countries, employers and workers across the world. This process begins when the government of a country put forward their agenda to the international organization such as ILO. Thus, international standards are developed by the collaboration of all these actors such as national governments, non-governmental organizations, trade unions at a local level, international organizations, and civil society groups including the corporations themselves using their code of conduct. However, the main actors are international organizations.
In the case of Nike, we see when Nike got indulges in unethical, illegal practices such as child labor, low wages and use of petroleum-based products in manufacturing, they are pointed out firstly by the non-profit organizations, who raised these issues at an international level, the international organizations such as ILO then take notice, meanwhile the national governments of the countries where Nike’s suppliers existed also took notice of these issues. All these actors collectively forced Nike to take action against Nike forcing Nike to take account of their actions. Thus, all the actors were responsible to bring the change. Consequently, Nike formulated a Code of Conduct for its suppliers which entail them to monitor the fundamental labor and health standards. They also ratified their existing Code of Conduct.
5. 案例分析代写
In the contemporary world, companies that solely focus on their own well-being and well-being of their stakeholders cannot survive in a long term. Only companies which are socially responsible sustain and earn profits in a long term in ethical ways. Companies that benefit the whole society bring sustainable development and deliver social, economic and environmental benefits. It drive the company to take initiatives which allow the company to take responsibility for its environmental and social wellbeing. If a company focuses on the benefits of other groups, they look beyond the company profits for the greater benefits of the community.
In Nike’s case we see how Nike instantly lost its reputation by not paying heed to the unethical or illegal means employed by its suppliers. These incidents forced Nike to start looking beyond the profitability of the shareholders only. Thus, Nike started scrutiny of its practices and amended its Code of Conduct with respect to the international labor and environmental standards. Some steps Nike took to benefits other groups include increasing the minimum age of the footwear factory workers and the adoption of US Occupational Safety and Health Administration (OSHA) standard to improve the indoor air quality. Thus, companies should benefit the other groups as well (Ellis-Hall, 2021).
6.
The most important thing to understand here is that economic and social factors are closely related to each other. Economic goals are centered on the overall well-being of the citizens. Thus, they cannot be treated separately. Both economic and social factors are required to be considered in corporate decision-making. If a company does not take into account the social issues and only focuses on profit margins, it will eventually affect its reputation. Economic considerations by the businesses gradually decrease their marginal rate of return whereas social considerations will increase the marginal return over time and also foster a positive image of the brand among the consumers. Consumers are the most imperative stakeholders for any business. Taking care of the customers is a necessary part of addressing social issues.
Apart from addressing social issues, the company should also consider the cultural aspects of the market in which they are operating. This enables them to understand consumer preferences. Economic considerations are equally important, as they enable the businesses to carry out their production processes in the region with low cost of production just like Nike. Nike outsourced their production to the countries like Pakistan, Vietnam, and China meeting their economic considerations but they failed to consider social factors such as child labor, low wages, etc.
7. 案例分析代写
Companies are not only responsible for their own employees and workers but also the employees and workers of their suppliers. In the given case, we see Nike was not taking any responsibility towards the workers of its suppliers initially. As a result, of which Nike got harsh criticism by international organizations including non-governmental organizations. Nike then start scrutinizing its actions including the actions of its suppliers. Nike hired production specialists to monitor and ensure the compliance of labor practices, cross cultural awareness and code of conduct. Nike started rewarding its managers for amelioration in environment and labor standards.
Thus, Nike started taking responsibility towards the employees of its subcontractors and suppliers which helped Nike to improve its reputation in the corporate world. The public opinion in 1980s catapulted the companies to ensure that their workers to not being mistreated. This opinion give rise to the concept of corporate social responsibility. A socially responsible company does not take care of its own workers and employees but also the workers of its suppliers (Fagan). Though suppliers’ workers do not explicitly work under them but there are helping them to fulfil their organizational goals and they are the responsibility of the company not the suppliers. Protecting the workers’ right comes under company’s social responsibility ( Locke & Siteman).
8.
Companies cannot promote coordination and collective action without involving the employees in defining the social responsibilities. Companies should encourage its own employees to adopt ethical behavior and do not indulge themselves in anything unethical effecting the environment or labor standards. Most importantly companies should spread complete awareness about the international labor and environmental standards among its employees. The compliance must start from internal level. Then it must spread gradually at global level. Companies should collaborate with international organizations and governments to promote the collective action and greater coordination among the producers. If some companies comply with higher standards and others do not than it will affect the credibility and profitability of the later ones in long term. They might gain competitive advantage in short term but in long term companies that will follow the higher standards will get competitive edge as good corporate citizens ( Locke & Siteman).
References 案例分析代写
Locke, R., & Siteman, A. (n.d.). The Promise and Perils of Globalization: The Case of Nike. MIT .
Ellis-Hall, W. (2021). The Importance of CSR and Why a Company Should Embrace it. Retrieved from https://www.drpgroup.com/en/blog/the-importance-of-csr-and-why-a-company-should-embrace-it#:~:text=CSR%20stands%20for%20Corporate%20Social,social%20and%20environmental%20well%20being.
Fagan, C. (n.d.). CORPORATE SOCIAL RESPONSIBILITY AND FOREIGN CONTRACTORS: CORPORATE ACCOUNTABILITY FOR WORKER SAFETY ABROAD. SAINT LOUIS UNIVERSITY LAW JOURNAL, 62(509). Retrieved from https://scholarship.law.slu.edu/lj/vol62/iss2/14/
Flanagan, R. (2002). LABOR STANDARDS AND INTERNATIONAL COMPETITIVE ADVANTAGE. Stanford University. Retrieved from https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.499.3937&rep=rep1&type=pdf
ILO . (n.d.). International Labour and Environmental Standards Application in Pakistan’s SMEs (ILES). Retrieved from https://www.ilo.org/islamabad/whatwedo/projects/WCMS_577265/lang–en/index.htm
ILO. (n.d.). IMPROVING WORKING CONDITIONS AND PROMOTING COMPETITIVENESS. Retrieved from https://www.ilo.org/wcmsp5/groups/public/—dgreports/—exrel/documents/publication/wcms_410573.pdf
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