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Manager Responses Management in Child Labour Accusations - Gap and Nike - Case Study Example

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Numerous suggested options consist of efforts at enhancing worldwide conformity with human rights specifications, levying of business sanctions or boycotts, and growing laws and prosecution of crimes. Not any of…
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Manager Responses Management in Child Labour Accusations - Gap and Nike
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Manager Responses Management in Child Labour Accusations Introduction Child labor is a world-wide issue which has driven muchdiscussion. Numerous suggested options consist of efforts at enhancing worldwide conformity with human rights specifications, levying of business sanctions or boycotts, and growing laws and prosecution of crimes. Not any of such remedies have accomplished more than limited acceptance, mainly because they are seldom put in force and disregard the basic reasons behind child labor. (Schrage, E., 2004) Child labor is a persistent issue all through the world, particularly in developing nations. Africa and Asia collectively make up for over 90 percent of entire child labor. Child labor is particularly widespread in non-urban places that the potential to enforce minimal age specifications for education and job is inadequate. Children work for a number of factors, the primary being poverty along with the triggered stress upon them to get free from this predicament. However, children are not well compensated, they yet function as primary contributors to household revenue in developing nations. Education issues furthermore help cause child labor, whether it be the inaccessibility of academic institutions or the insufficient level of quality education which hastens parents to get their kids in a lot more lucrative activities. Conventional aspects for example stiff ethnic and social positions in some regions additionally restrict educational fulfillment and augment child labor. Working kids go through significant exploitation when it comes to toiling for lengthy hours for a bare minimum of wages. Their job environment are particularly critical, frequently not offering the motive for appropriate physical and psychological growth. Most of these children survive lifestyles of real starvation. Nevertheless, there are difficulties with the instinctive way out of instantly abolishing child labor to stop this kind of mistreatment. Initially, there is absolutely no global contract explaining child labor, which makes it difficult to identify instances of mistreatment, let alone get rid of them. Subsequently, a lot of children might have to be employed in order to go to school so abolishing child labor may merely block their education. Any specific strategy of abolishment is dependent on education. (Lindert, P., 1976) Significance of Topic for Businesses: In accordance with ILO report, every year 215 million children of age ranging from 5 to 17 years are found working in factories, workshops and fields. This issue has a deeper impact on the popularity of a company. If a company is found accused of child labor in its supply chain, the critics condemn it strongly and media reports badly tarnish the image of that brand, no matter how big the company is. Pat experiences have shown that even some of the huge brands have been involved in child labour and when the news broke on media, it shattered their image adversely. It is the responsibility of company’s managers to take care of the matter if any such issues appear in their supply chain. This requires an in-depth strategy to overcome all these issues to preserve the company’s impression. If a company is found accused of child labor, people even boycott its products which drastically lower the sales and reduce the profits to a great extent. Most of the big brands outsource their manufacturing from developing countries where the factory owners do not abide by the state regulations. Hence, it is the duty of the particular company to check if the working conditions at the manufacturing plant are suitable for the workers. Cautious supply management and stakeholder strategy are the key factors that can be relied on while going through the child labor accusations. A company can get its position back if and only if it responds to the accusations promptly and in a proper and thoughtful way. Context: This paper is intended to address the child labor issues in the supply chains of leading brands. Child labor issues have been discovered in many of the famous brands namely Nestle, Gap, Nike, Zara, Primark, Apple and others. If a brand name is popular, the issues related to it are more vulnerable to public criticism. In this paper, child labor issues associated with two major apparel brands, Gap and Nike, will be fully discussed. In addition to this, the strategies those companies used to get their name back will also be taken into consideration. In-depth analysis of the management decisions would be carried out along with the outcomes of those classic decisions that helped Gap and Nike to keep their business going on at the same pace after being involved in child labor accusations. Media coverage and the threat to take actions against these brands made this issue a critical one for the international companies. Nike and Gap worked collaboratively with stakeholders to eradicate the adverse issue of child labor in their supply chains of apparel manufacture. The experience of these leading apparel companies taught a number of lessons to executives, managers and policy-designers who want to promote fair trade. (Schrage, E., 2004) Overview of the Topic: The application of fair trade branding to overcome child labor is a strategy which has acquired almost no recognition in the judicial community. However, principal qualitative research and case studies presented below depict that fair trade can be a substitute for existing ways of doing away with child labor. Initially, fair trade is determined by market rewards and exclusive supervising with practical punishments for noncomplying fair trade businesses. Subsequently, it is voluntary and confidential, staying away from the political issues with global tracking which seldom conclude in enforcement or fines. Thirdly, in contrast to prosecutions that target a handful of the resultant issues of child labor and trafficking, fair trade concentrates on enhancing profits, working situations, wellbeing, and training of a great number of employees. (Ewing, A., 2004) Child of labor abuses and ecological harm are more and more prevalent for leading manufacturers sourcing in todays internationally developed supply chains, frequently featuring significant reputational challenges at the very least. (R.E. Freeman, J.S. Harrison and A.C. Wicks, 2007) Nevertheless, the regular reaction of trying to police supply chains by highlighting conformity specifications is normally improbable to be an adequate or productive long standing remedy. Leading brands have gone from a regular compliance-oriented strategy to build rather than a real, detailed and a lot more productive stakeholder engagement approach. Building strategic stakeholder engagement entails five vital measures: (Lindert, P., 1976) 1) Stakeholder mapping to obtain inside involvement; 2) Determining the material concerns; 3) Explaining motives; 4) Dealing with concerns collaboratively; and 5) Embedding involvement. The research with a few of the major brands administration and their secondary stakeholders demonstrates the way this approach turned out to be more efficient by divergent two identical child labor situations in the companys supply chain. Nevertheless, it took effort to establish and needed a distinct frame of mind, such as a transition from risk aversion to collaboration, from "quick fixes" to long term remedies, and an extended design of supply chain obligation going beyond focus on first phase manufacturers. In addition to fixing if not eliminating issues in the supply chain (and somewhere else), strategic stakeholder involvement supports administration see the forthcoming days, encourages confidence, and can enhance the companys public impression. More essentially, it offers a much deeper knowledge of a companys commitments to its stakeholders and thus is in line with genuine dedication to company social duty. (R.E. Freeman, 1984) Case Study of Gap Inc. Gap, a well-known UK apparel retailer, underwent the child labor accusation like many other major brands. In this paper, the whole scenario will be examined in addition to the analysis of the strategy Gap acquired to resolve those critical issues and got its fame back. (P. Kenyon, 2000) The Gap story was published in London Sunday Times of August 2009. It was reported that Gap Inc. had disposed dangerous chemicals into the local lands of Lesotho, an African Mountain Kingdom. Moreover, it was also reported that Gap used Child labor and the workers complaint of being treated badly at the factory. It was, no doubt a nightmare for the management at Gap. (D. McDougall, 2009) At this point of time, the Gap reacted promptly and proactively to take measures in order to deal with the issues, and the Lesotho narrative shortly conked out. What had transformed? In the intervening years, the Gap had nurtured secure associations with labor organizations, human rights establishments, authorities and other parties by means of continual and action-oriented involvement — an extended, challenging practice that had remodeled a company affiliated to sweatshops and child labor into a business acknowledged for corporate social obligation, the type of company that people were looking to offer the advantage of the uncertainty. Gap’s stakeholder involvement approach altered the manner Gap handled unavoidable moral business issues. Nevertheless, the transformation did not occur in a single day. Conversely, management discovered several vital lessons through the years. In this paper, determined by comprehensive interviews executed in 2009 with Gap administration and important external stakeholder staff. In this paper, it would be discussed how Gap produced its stakeholder involvement approach, the job this kind of a transformation involves and a lot of ways wherein stakeholder involvement has reaped the benefit for the company. Primary Steps Taken by Gap’s Management to Deal with the Child Labor Accusations: Be a companion: The conventional reactive, risk-avoidance strategy to labor and ecological concerns contributes to more activism, deteriorating the brand name and frustrating worker enthusiasm. Working as a companion with stakeholders can result in more effective emergency solution and remediation and aid the prevention of more crises from building at the outset. Don’t depend only on conformity: By means of stakeholder engagement, Gap administration recognized that the future was not in only policing industries. It found out that savvier and powerful stakeholders , many with a great deal of the expertise monitoring circumstances in the industries, had come to know that the effect of supervising was often minimal and that capability developing, coaching and buying tactics are also primary elements. Quite a bit of the details about significant violations frequently originated from external stakeholders instead of internal factory auditing, so involvement was fundamental. (R.K. Mitchell, B.R. Agle and D.J. Wood, 1997) Go profound: At present, when the media channels state labor legal rights violations for example the India child labor example, they usually discover them in the second-tier manufacturers or beyond, where there is certainly much less supervision and refinement in comparison to first-tier vendors for leading fashion businesses. Approaching much deeper into the supply chain needs conjunction with new stakeholders that have greater comprehension, such as familiarity with local languages and the capability to seize an advisory function. (Schrage, E., 2004) Seek the services of boundary spanners: Gap developed a worldwide affiliation team that can anticipate a “boundary spanner role” within the business. These kinds of “boundary spanners” are specialists that are proficient at sustaining one foot resolutely in the company with the other exterior in the stakeholder circle. (P. Kenyon, 2000) Strengthen your affiliates: Sustainability catastrophes tend to be way too complicated for any one business or stakeholder to fix alone. Creating lasting strategies to dealing with a couple of the world’s most difficult concerns — for example child labor — will be needing multi-stakeholder affiliation with organizations, NGOs and authorities. (R.E. Freeman, 1984) Gauge accomplishments: Requirements for assessing the intensity of stakeholder engagement usually assess administration procedures and strategies. As these kinds of actions are essential to engagement, administration must also consider metrics for example media reports, staff recruitment and sustenance and brand worth. Further hints to valuable stakeholder engagement incorporate product value, worker earnings and regressing order decline estimates. (R.E. Freeman, J.S. Harrison and A.C. Wicks, 2007) Inquire first: Engagement can be most reliable when the business is contemplating variations to items, procedures or organizational tactics. Suggestions from many different stakeholders makes it possible for management to gain a more proportionate idea of challenges and possibilities. (N.C. Smith, G. Palazzo and C.B. Bhattacharya, 2010) Implementation of Stakeholder Strategy Involvement by Gap: The Cambodian experience was intensely annoying to Gap managers. In spite of fielding a huge labor specifications surveillance staff and spending millions in policing its industries, Gap continued to be under consistent stress from advocacy communities in America and the United Kingdom. Professionals discovered that Gap’s legalistic risk-mitigation strategy to moral business was “broke” — policing would not pull the alternation in the supply chain that administration wanted. Evidently, the way it involved with its critics required a primary change. In the months that followed the Cambodia situation, Gap embarked on a five-step approach to more profound involvement with its stakeholders: Step 1- Create a stakeholder chart: Initially, Gap designed a stakeholder chart, itemizing just as many stakeholders as possible, and then rating them by their salience or significance. “We acknowledged that it would not be feasible for us to have an important association with each of the parties, so we recommended people who we considered to be the most fundamental,” recalled Deanna Robinson, Gap’s head of supervising and company growth. (Donaldson and L. Preston, 1995) In 2002, after determining its primary stakeholders, Gap started to speak to them to obtain their recommendation on how to strengthen labor procedures. One meeting particularly was to have essential outcomes for the business. Company professionals spoke to Lynda Yanz, of the Maquila Solidarity Network in Toronto, Canada. (MSN is a powerful workers’ legal rights coalition related to labor rights concerns in the Americas — a key sourcing marketplace for the business.) Gap administrators turned up from the meeting accepting they were flawed in attempting to “go it alone” in their endeavors to enhance labor environment. The team ended up being satisfied they need to think about growing affiliation with pertinent stakeholders and deem getting into the rising multi-stakeholder endeavors. On Yanz’s recommendation, Gap started to involve stakeholders a lot more holistically, and stakeholders started to speak with regards to growing concerns instantly with corporate accountability group participants. Beyond interacting with MSN, Gap additionally registered with two multi-stakeholder tasks: the New York-based Social Responsibility International in 2003 and the London-based Ethical Trading Initiative, or ETI, in 2004. Managers state that signing up for these MSIs supplied the business with a secure discussion board, wherein to talk about its issues with a variety of stakeholders and to acquire their experience and views on the most effective ways to deal with specific concerns. Step 2- Determine the material concerns: Subsequently, Gap uncovered the most critical social concerns the company and its stakeholders encountered. “We look at what our primary influences are, and we seek to continue to be apprised of primary concerns in those areas and select possibilities where Gap’s involvement can make a positive change,” described Knudsen. (D. McDougall, 2009) After analyzing the concerns, Gap gauged their severity. In the event that there was substandard proof and minor understanding for a problem, it was regarded as “latent.” If it had turned out to be the target of NGO campaigning and analysis, the concern was categorized as “emerging.” If realization of the concern moved beyond the expert community to the open public and mass media, and there persisted a powerful body of proof in support, it was “consolidating.” As a final point, a concern was “institutionalized” when its management had grown to be a regular section of stipulations and business exercise. Step 3- Specify targets: Gap identified its goals depending on stakeholder suggestions by means of the involvement method with MSN as well as others. One main concern that turned up: improving transparency. (P. Kenyon, 2000) A significant breakthrough for Gap in this respect was the distribution of its very first social accountability record in 2004. The “warts and all” statement highlighted code of conduct violations on the subject of labor and the supply chain and the actions being implemented to ward off potential violations. Even though a few media stores interpreted the statement as an act of contrition (with news like “Gap Admits to Running Sweatshops”), a couple of Gap’s most challenging critics praised the attempt. (R.E. Freeman, J.S. Harrison and A.C. Wicks, 2007) Step 4- Solve issues collaboratively: Just before the involvement approach, stakeholders will deliver correspondence to Gap relating to their anxieties with regards to factory concerns. Corporate communications network would generally respond with a “canned” approach, referring to the code of conduct and the number of inside auditors that were attempting to deal with noncompliance. That strategy usually enraged stakeholders and amplified the possibility of strategies against Gap. Gap’s worldwide collaboration team started to take an alternative tack and alternatively told stakeholders to get in touch with it instantly if they noticed issues growing. (N.C. Smith, G. Palazzo and C.B. Bhattacharya, 2010) This strategy repaid in 2005, the year the Multi Fiber Design was phased out. Between 1974 and 2005, the MFA had governed the quantity of textiles developing countries could export to developed states. Step 5 - Implant involvement: Few Gap stakeholders were resilient against the involvement approach. Several workers thought the company was selling out to NGOs, whereas a bit of exterior stakeholders disregarded Gap’s endeavors as more PR rotation. At the start, Gap’s legal unit was especially not sure with regards to the approach. “Gap attorneys were incredibly conscious and careful regarding anything they might state in public that could open them up for prospective litigation,” recalled Bennett Freeman, an adviser in those days with Burson-Marsteller, the public dealings firm that was associated with the stakeholder involvement verdict. Beyond Emergency Administration - India, 2007 In 2007, Gap’s cutting edge stakeholder involvement strategy was put to the evaluation, seeing that the media uncovered one more case of child labor in Gap’s supply chain. A reporter from Britain’s Observer daily newspaper recommended Gap’s company social accountability staff of his discoveries on the subject of child labor in an Indian embroidery business that generated T-shirts for the GapKids variety. Gap looked into the scenario and found that one of its authorized vendors had recommended handiwork to the embroidery firm, a service not permitted by Gap. Honestly, this situation was a lot more serious as compared to Cambodia. In this instance there was clearly no question regarding the age of the employees and the rigorousness of the operating environment. A few of the children had been distributed to the sweatshop by their impoverished households as bonded or even pressured labor. They labored 16 hours daily without reimbursement, experiencing extreme physical and oral mistreatment from their employers. (D. McDougall, 2009) Due to its beforehand stakeholder involvement endeavors, Gap had additional time to create an efficient reaction to the allegations and a pure strategy to remediating the concern in comparison to the Cambodian situation, as per Deanna Robinson. (N.C. Smith, G. Palazzo and C.B. Bhattacharya, 2010) As soon as the news broke, Gap adopted the rules it had been taught by several stakeholders, which included trade unions and NGOs, regarding how to handle a child labor crisis: It began to take whole responsibility, revoked the product order and stopped the unlawful subcontractor from any long term participation with the company. NGO and trade union staff informed that Gap’s transparency and insight in the time before the emergency triggered them to adopt a much more collaborative strategy. “There is much less grievance from the campaigning network that surround them,” said Maggie Burns, a trustee of Women Functioning Globally, a U.K.-based company that actually works with a globally oriented network of women workers. Multiple NGO members stressed that it does not necessarily mean Gap would never be criticized, however, it implies that they are a lot more assured that the Gap would do the correct thing by acquiring duty and responding promptly. Gap and Lesotho: The traditional reaction to the snapshots of Lesotho kids picking out through flaming trash and a navy blue waterway might have been for the company to refuse accountability, condemn the subcontractor and then slash all links with the malfunctioning service provider. That was the outdated script. On the other hand, Gap reacted as it had in India — promptly and proactively. On August 2, 2009, Henkle supplied a media declaration on the subject of Lesotho wherein he claimed that the company’s dedication to bettering the day-to-day lives of employees in Lesotho and publicized the measures Gap decided to take in order to fix the issue. On September 18, Gap and Levi Strauss released a mutual announcement describing the measures they had undertaken or requested of other people. These involved inside and impartial analysis; conferences with their vendors and local government authorities; instant fix of a shattered municipal waste pipe; and improvement of production line administration training to make sure conformity with their codes of conduct. Finally, major labor NGOs even openly praised Gap’s measures. Public crises are typical but unavoidable for leading brands with stretched out supply chains in developing markets. Their end result is not. “It is not a transgression to discover child labor in your supply chain,” stated Dan Rees, ex- ETI administrator. “What is essential is what you do regarding it whenever you get the information.” As Gap has found out in the last decade, when the degree of involvement is strong as much as necessary, these kinds of crises can be converted into chances that make the company and its stakeholders even more powerful. Case Study: Nike Nike has turned out to be among those international organizations focused by a wide range of campaigning NGOs and journalists as a symbolic depiction of the business in modern society. In Nike’s situation, the concerns are those of human rights and troubles for employees in industrial plants in developing nations. In the midst of continual accusations, Nike has produced a regarded reaction, reinforced by company website reporting. It currently possesses a well formulated emphasis for its company accountability on enhancing situations in hired industrial plants, focusing on carbon neutrality, and providing sports accessible to younger people around the world. The condemnation goes on, nevertheless. Reason behind Acquiring Child Labor: Increasing revenue in the pursuits of shareholders continues to be the standard objective for the majority of companies, which Milton Friedman referred to as the financially effective alternative for modern society. Directed by these kinds of concepts in the perspective of a globalized economic system, Nike transferred its manufacturing to cheaper cost regions for example Indonesia, Vietnam and China. As a result of reduced incomes and much less limited workforce laws in accordance with developed nations, these developing regions offer Nike with less expensive and more adaptable manufacturing choices. Nevertheless, in getting access to the group of inexpensive labor, Nike subjected itself to a deluge of child labor accusations. Hence, Nike experienced huge drawdowns from item boycotts and threats of divestments by stakeholders who kept Nike to be communally responsible. (Julie Schmit, 1999) Child Labor Issues with Nike: In June 1996, a picture of a 12 year-old Pakistani kid sewing a soccer ball displaying a “swoosh” emblem was posted in Life Periodical. Consequently, Nike confronted a tsunami of open public condemnation over child labor. Nike did not succeed to carry on with its 1992 Code of Conduct that mentioned it would not hire a kid under the age of 14. Even now, Nike fights to keep its brand from turning out to be associated with child labor. (Andy Dworkin, 2000) The Company Executives Commitment: Thus, what started seventeen years ago as Nike’s nightmare show of globalization has developed presently into the motivational history of its revolution to a lasting international business. Nike is wholeheartedly devoted to “build a lasting enterprise and generate significance for Nike and stakeholders,” rather than just its shareholders. Sustainability is simply not linked to risk control for Nike; it is relating to progress. Chieftains and workers of the corporation identify the interconnection between sustainability, brand name augmentation, funds effectiveness and productivity — Nike’s progress techniques are designed on these four pillars. CEO and entrepreneur Mark Parker is likewise tremendously devoted to “decoupling” Nike’s “profitable progress from limited assets.” (Montero, David, 2011) By 1997, Nike had evolved into a sign of child labour in the developing countries and was the victim of a number of protests outside outlet entrances and by college students against their universities associations with the corporation. In October 1997, anti-Nike rallies were organized in UK and other European countries. (Julie Schmit, 1999) At the same time, Nike persisted to protect its salary ranges with commissioned reports and rhetoric. CEO Phil Knight rationalized that operating situations in Asian manufacturing premises had enhanced significantly since Nike had launched venture 25 years back. By 1998, nevertheless, the harm to Nikes popularity was starting to be sensed in the trading account documents. Share prices were falling and product sales were poor. Knight confessed: The Nike product has grown to become associated with child labor, pressured overtime and intentional misconduct. To fight against this, Nike poured its promoting competence into its own company credibility and attempted to represent an accommodating firm that was serious about operating issues in its contractors industries. It employed a previous Microsoft professional to be vice president for company and social accountability, and broadened its corporate accountability department to 70 employees. This community interactions strategy additionally integrated improving its own code of conduct and working for a variety of coalitions. These incorporated the Global Alliance for Workers and Communities (geared towards assisting personnel in developing countries’ footwear and apparel industries) along with other company coalitions with a reported social accountability strategy similar to the previously mentioned Business for Social Accountability. The company, in spite of this, persisted to cry out against labour and human rights linkages to business contracts. As a reaction to the constant condemnation, Nike designed a code of conduct for its tradesmen. The policy, initially designed in 1992 and amended in 1997 and 1998, should preferably be implemented in all industrial units manufacturing Nike merchandise. It possesses suggestions for lowest possible salary (as decided the host state), highest obligatory working hours of 60 in one week, a nominal age for employees of not less than 16 years old, a restriction on pressured child labour and lowest possible protection and ecological specifications. (Montero, David, 2011) Nike, furthermore, regularly mentioned its subscription of the Fair Labor Association (FLA) that was established purportedly to protect operating environment in industrial facilities employed to US firms. Even though several NGOs were associated with the FLAs development, two unions, a shopping center and the Interfaith Center on Company Accountability tugged out for the reason that they disagreed with the final terms and were anxious that the FLA was bit more than a public interactions activity. The FLA possesses a voluntary code of conduct and affiliate businesses are able to link a No Sweat tag to their products. The code states that corporations will be paying the minimum salary or existing industry salary of the state wherein they are working, but creates no specification that companies ought to pay out a salary that staff can survive. Seeing that numerous developing countries contend for global capital by maintaining the minimum salary marginal, the minimum salary is frequently below a subsistence wages, particularly for assisting a household. How did Nike tackle with the challenges of Age verification? Setting the age of job candidates continues to be a primary issue in several areas of the world. A lot of organizations, working in regions where birth data are non-existent or a lately implemented practice, have needed to work out their own methods for figuring out age. In its 2001 Company Accountability Report, Nike pertains its viewpoints in validating the age of employees in its partner producers in Cambodia. There, a manufacturing plant supervisor trying to adhere to federal regulation and Nike Code of Conduct specifications “must cope with a confounding set of paperwork offered by an employee, which includes an account of family births and deaths (the ‘family book’), an area enrollment, voters enrollment, and a healthcare document. All bear some kind of authoritative stamp. And each one can be bought on the black marketplace for the amount of $5.” (Julie Schmit, 1999) Learnt from Nike lessons, there are some strategies that may benefit some other corporations working in under-developed countries. Provided that public documents keep on being deceptive, this issue will continue to be for companies trying to avoid employing children. Certain approaches for dealing with the issue incorporate needing several kinds of composed paperwork, demanding potential workers to go through medical tests just before employing, doing interviews with applicants whose age seems to be doubtful, releasing photo ID cards to all of the workers, and managing a repository to flag underage job candidates. With above 900 manufacturing units, 750 retail outlets and a substantial number of clients the world over, Nike’s company impact is massive. For that reason, any sustainability-oriented adjustments the company tends to make will definitely increase global awareness and enrich the sustainability impact of the world at the same time. (Montero, David, 2011) And since it can be noticed, Nike is making a real impact before now — its concept of ethical business tactics and the requirement to generate a financially, socially and ecologically endurable world is reaching out for the public in developed as well as developing nations in a similar way. Its sustainability endeavors are increasingly being respected and supported by administration chieftains and celebs. In actual fact, Nike is differentiating itself from its rivals making use of the potential of sustainability techniques. It is coming out as one of the most effective international endurable manufacturers. And the company even now desires to accomplish a lot more — as Parker states, “At Nike, there is absolutely no end line.” Therefore, the businesses under charge for child labor accusations may like to reconsider the Nike case for lots of motivation. Conclusion: The lessons that can be learnt by the managers from the Nike and Gap cases include: For an organization to guarantee the accountable removal of child labour within supply chains it needs to initially seek to abide by federal laws on child labour. Where federal laws and regulations are established lower than global specifications on child labour then a business must make an effort to fulfill these superior criteria. An organization would additionally be suggested to participate in human rights research to an amount commensurate with the challenges of child labour within its supply chains and its capability to influence favorably the child labour issues at risk to be able to perform its duty to appreciate human rights. This could consist of carrying out influence evaluations and social audits to measure the probability and characteristics of child labour within its supply chain. Managers can look for specified assistance with this and other concerns associated with global labour specifications from the ILO Helpdesk. This is designed to assist company supervisors and employees fully grasp the ILO strategy to socially accountable labour procedures and to help out with the growth of good commercial dealings. References D. McDougall (2009), “African Dream Turns Sour for Orphan Army,” Sunday Times, Aug. 2, 2009; and S. MacVicar, “Jean Factory Toxic Waste Plagues Lesotho,” “CBS Evening News,” R.E. Freeman, J.S. Harrison and A.C. Wicks (2007), “Managing for Stakeholders: Survival, Reputation and Success” (New Haven, Connecticut: Yale University Press) T. Donaldson and L. Preston (January 1995), “The Stakeholder Theory of the Corporation: Concepts, Evidence and Implications,” Academy of Management Review 20, no. 1: 65-91 R.E. Freeman, J.S. Harrison, A.C. Wicks, B.L. Parmar and S. de Colle (2010), “Stakeholder Theory: The State of the Art” (Cambridge, United Kingdom: Cambridge University Press. P. Kenyon (2000), “Gap and Nike: No Sweat? ” BBC; and C. Decherd, “Cambodia Rejects Allegations of Child Labor in BBC Documentary,” Associated Press, October 5, 2000. R.K. Mitchell, B.R. Agle and D.J. Wood (1997), “Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts,” Academy of Management Review 22, no. 4: 853-886. D. McDougall (2007), “Child Sweatshop Shame Threatens Gap’s Ethical Image,” Observer. Lindert, P. 1976. "Child Costs and Economic Development." In R.A. Easterlin, ed. Population and Economic Change in Developing Countries. Chicago: The University of Chicago Press. Smith, N. C., Ansett, S., & Erez, L. (2011). Whats at stake? Stakeholder engagement strategy as the key to sustainable growth. Fontainebleau: INSEAD. Sarah Severne (2000), Nikes Journey to Sustainability Paper presented at the Business and the Environment: Solutions for the new millennium, Sydney Michelle Cole (2000), Nike sporting a new color: green, Oregon Live. Nike pledges to improve conditions in Asian factories, Asia Pulse, July 18, 1997; Jensen, p. 41A. Andy Dworkin (2000), Nikes Phil Knight starts at top to plead case on labor practices, Oregon Live. Julie Light, Sweatwash (1998): The apparel industrys efforts to co-opt labor rights, (Corporate Watch, www.corpwatch.org/greenwash/swea twash.html). Julie Schmit (1999), Nikes image problem, USA Today. Ewing, A. (2004) ‘Understanding the Global Compact Human Rights Principles’, in United Nations Global Compact and the Office of the High Commissioner for Human Rights, Embedding Human Rights into Business Practice(New York: UN Global Compact Office. Schrage, E. (2004) Promoting International Worker Rights through Private Voluntary Initiatives: Public Relations or Public Policy? Friedman, Milton. "The Social Responsibility of Business is to Increase its Profits." Libertarian Issues. The New York Times Magazine, 13 Sept. 1970. Web. 8 May 2011. . "Human Rights and Business Dilemmas Forum - Case studies." Human Rights and Business Dilemmas Forum - Home. The Global Compact, Web. 8 May 2011. . Montero, David (9 May 2011), "Nikes dilemma: Is doing the right thing wrong?" The Christian Science Monitor - CSMonitor.com, 22 Dec. 2006. Web. . Trading, sharing information about the entire. "Principles for the Fair Trade Federation Members." Welcome to the Fair Trade Federation. Web. 9 May 2011. . Read More
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