Case study Nike
However, whether a multinational company should abide by the international labor. And environmental standards raises ···
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. 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.).
然而，跨国公司是否应该遵守国际劳工和环境标准引发了许多其他问题，例如这些跨国公司是否对其分包商的员工负责？正如我们在此案中所看到的，耐克被迫为非政府组织违反国际标准的行为承担责任。因此，人们可以理解国际劳工和环境标准在保持跨国公司遵循这些标准以合乎道德的方式行事方面的作用。国际标准确保跨国公司履行企业社会责任。这些国际和环境标准是在与工人、雇主协商后实施劳动和环境法的基本政府工具。这些政策符合国际公认的标准。在许多国家，国际标准是在批准国际劳工组织公约后实施的。国际法的目的是协调国家法律和实践，批准进一步推进了国际标准的实施。以耐克为例，自 80 年代以来，我们多次看到耐克被各种非政府组织和非营利组织指出违反国际标准。他们还迫使耐克承担他们在供应商工厂发现的不同环境和劳工问题的责任。耐克之前否认所有这些责任，但世贸组织和国际劳工组织等组织确保全球知名品牌耐克（国际劳工组织，日期不详）遵守。
The implementation of labor standards
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).
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.
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.).
The development of international standards
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.
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).
只关注自身福祉和利益相关者福祉的公司无法长期生存。只有对社会负责的公司才能以合乎道德的方式长期维持和赚取利润。造福全社会的企业带来可持续发展，带来社会、经济和环境效益。它促使公司采取主动行动，使公司能够对其环境和社会福祉负责。如果一家公司专注于其他群体的利益，他们就会超越公司的利润，为社区带来更大的利益。在耐克的案例中，我们看到耐克如何因不注意供应商采用的不道德或非法手段而立即失去声誉。这些事件迫使耐克开始只关注股东的盈利能力。因此，耐克开始审查其做法并根据国际劳工和环境标准修订其行为准则。耐克为其他群体采取的一些措施包括提高鞋厂工人的最低年龄，以及采用美国职业安全与健康管理局 (OSHA) 标准来改善室内空气质量。因此，公司也应该使其他群体受益（Ellis-Hall，2021 年）。
The most important thing to understand here is that economic
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.
Companies are not only responsible for their own employees and workers but also the employees
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).
还要对供应商的员工和工人负责。在给定的案例中，我们看到耐克最初并未对其供应商的工人承担任何责任。结果，耐克受到包括非政府组织在内的国际组织的严厉批评。耐克随后开始审查其行为，包括其供应商的行为。耐克聘请了生产专家来监控和确保劳动实践、跨文化意识和行为准则的合规性。耐克开始奖励改善环境和劳工标准的经理。因此，耐克开始对其分包商和供应商的员工负责，这帮助耐克提高了其在企业界的声誉。 1980 年代的公众舆论强烈要求公司确保其员工不会受到虐待。这一观点催生了企业社会责任的概念。一家有社会责任感的公司不会照顾自己的工人和员工，也不会照顾供应商（Fagan）的工人。虽然供应商的工人没有明确在他们之下工作，但他们正在帮助他们实现组织目标，他们是公司的责任，而不是供应商。保护工人的权利属于公司的社会责任（Locke & Siteman）。
Companies cannot promote coordination
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).
公司就无法促进协调和集体行动。公司应鼓励自己的员工采取道德行为，不要沉迷于任何影响环境或劳工标准的不道德行为。最重要的是，公司应在其员工中全面宣传国际劳工和环境标准。合规性必须从内部层面开始。然后它必须在全球范围内逐渐传播。公司应与国际组织和政府合作，促进生产者之间的集体行动和更大程度的协调。如果一些公司遵守更高的标准，而另一些公司则不遵守，从长远来看，这将影响到后来者的信誉和盈利能力。他们可能会在短期内获得竞争优势，但从长远来看，遵循更高标准的公司将获得作为优秀企业公民的竞争优势（Locke & Siteman）。
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
更多其他：代写作业 数学代写 物理代写 生物学代写 程序编程代写 统计代写