in you own words zero plagiarism answer these questions. The Ethical Cost of Doi
ID: 2814296 • Letter: I
Question
in you own words zero plagiarism answer these questions.
The Ethical Cost of Doing Business Debate
Detecting unethical practices at supplier factories, to include monitoring and compliance, is a major challenge to say the least. Yet, wages drive costs and it’s an absolute necessity to maintain the lowest cost in production of any good. Or is it?
This week focus on debate! Start or select a fellow student's side, and either support or argue against that position, but be constructive in your approach. Employ teamwork!
1. Discuss how important is it for companies, such as Nike and Wal-Mart that source extensively from foreign suppliers located in countries where wages are low and substandard working conditions are common to institute supplier codes of conduct and undertake programs to monitor and ensure supplier compliance with these codes of conduct?
2. Would you recommend that a company join the Fair Labor Association and use FLA’s standards and program of factory audits instead of trying to set up its own supplier monitoring and compliance effort?
3. What can a company do to detect and combat the efforts of unscrupulous foreign suppliers to deceive inspection/compliance teams?
Explanation / Answer
Ans 1 : It is very important for Companies such as Nike and Wal-Mart that source extensively from foreign suppliers located in countries where wages are low and substandard working conditons are common to institute Supplier codes of conduct and undertake programs to monitor and ensure supplier compliance with these codes of conduct.
The first reason for same is that the company might get into legal trouble in some of such situations if does not ensure that the supplier group adheres to good standards of labour.
Moreover, there is a huge risk of Brand Name i.e Reputation risk in case the low and substandard working conditions by the Supplier groups are highlighted across media to the common public.
Such Reputation Loss shall have a much huge bearing on the company's networth that saving in cost will.
It is thus imperative that the company should work with Vendors who will ensure compliance to the standards that the company will ask the vendor to. Also the company can use the same as an example to it's competitors to emaluate their practice.
2. It is highly recommended for a company to join the Fair Labour Association and use the FLA's standards and programs of factory audits.
The reason for same is that Fair Labour Association's mission to encourage member organizations to promote adherance to national and international labour laws. Moreover FLA also undertakes audits of the factories of the member organizations which shall help in finding any gap. Adhering to FLA Standards will also help in motivating employees in the Supplier group which might further lead to increase in productivity. Also such adherance will also create a good image of the company in the society.
3. A Company can take multiple steps to detect and combat the efforts of unscurpulous foreign suppliers to deceive inspection / compliance teams like :
a. The company should regularly ask for proofs of compliance on a timely basis. (Like monthly.) For e.g This can be inform of photographs which are showing that the suppliers are ensuring compliance to the laid down standards.
b. The Company should suo moto directly contact the workers and regularly speak to them during timed intervals. This can take place through a sample questionnaire from which idea about the levels of compliance can be chcked.
c. Surprise audits and visits to the factories.
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