201 0

BUSINESS ETHICS TOWARDS HUMAN RIGHTS
Applied Management Project
(09-10T4AABSS000-6)

STUDENT ID: 0820255 M Sc International Business Management

BUSINESS ETHICS TOWARDS HUMAN RIGHTS

Contents Executive Summary.................................................................................................03 Chapter-1 Introduction..............................................................................................................04 1.1 Background of Business ethics..........................................................................04 1.2 Human Rights and its Standards........................................................................05 1.3 Human rights implementation in Businesses......................................................06 1.4 Objectives of the report.......................................................................................06 1.5 Structure of the report.........................................................................................07 1.6 Scope of the Project............................................................................................07 Chapter-2 Literature Review......................................................................................................08 2.1 Ethics in finance..................................................................................................08 2.2 Ethics in Human resource management.............................................................10 2.3 Ethics in Sales and Marketing.............................................................................11 2.4 Ethics in production.............................................................................................12 2.5 Ethics in property rights.......................................................................................13 2.6 Human Rights......................................................................................................15 2.7 Human rights for the workers...............................................................................16 2.7.1 Issues over the rights for workers.....................................................................18 Chapter-3 Case study on the clothing industry...........................................................................20
| 2

UNIVERSITY OF BEDFORDSHIRE

BUSINESS ETHICS TOWARDS HUMAN RIGHTS

3.1 General study on the clothing sector...................................................................20 3.1.1 Strategies in 1970’s..........................................................................................20 3.1.2 Structure of the clothing industry......................................................................21 3.2 Business ethics in the clothing industry...............................................................22 3.3 Employment in the clothing industry....................................................................23 Chapter 4 Analysis.....................................................................................................................25 Introduction on clothing industries.............................................................................25 4.1) Primark...............................................................................................................26 4.2) Levis Strauss & Co.............................................................................................28 4.2.1) Corporate social Responsibility of Levis Strauss.............................................30 4.2.2) Further analysis on the organisation strategies and the employment of workers inside and outside of the home country.....................................................................31 4.3) A study on the other companies in clothing industry..........................................32 4.4) Employment for workers.....................................................................................33 Chapter - 5 Conclusion.................................................................................................................35 Chapter- 6 Recommendations.....................................................................................................37 References................................................................................................................39

UNIVERSITY OF BEDFORDSHIRE

|

3

BUSINESS ETHICS TOWARDS HUMAN RIGHTS

Executive Summary

The aim of this report is to enlighten the importance/relevance of upholding the human rights standards for workers in the clothing industry. The report examines the workers working within and outside of their home country while dealing with their current issues. Analysis is carried on the ethics of business which includes the human rights standards for the labours as well as the ethical values of the various fields in business.

Initially, the concepts and theories of the business ethics are analysed as a part of literature review with the help of books and websites as to understand them better. The arguments of different authors are compared and analysed. This information is applied to the current human rights, working standards of the workers and an analysed data is retrieved in the form of reports which contain information with respect to the major clothing companies in the world.

The later section of the report suggests important recommendations to be made for improving the working standards as well as for improving the performance of the company.

UNIVERSITY OF BEDFORDSHIRE

|

4

It has been so because of the unethical practices followed by few businesses. structure of the report into consideration. 1. the businesses followed ethical values which brought a change in the working style of the organisations. People came to know that a small mistake in carrying a business would lead to a disastrous end. world nations created rules to be followed for a better living. India due to the negligence of few higher officials. From then on. a major gas leakage has happened in Bhopal. The number of deaths in the world wars paved a path to the need for ethical values. Establishing a business was meant to earn money in the simplest way rather than achieving appreciation in the society.1 )Background of Business Ethics Business ethics has been into existence nearly three decades ago. But the unethical practices in few businesses continued in spite of having rules as there were loop holes in the system that is established. In 1984. This was common at the time of World War I and II where there were no rules and regulations on how to run a business. UNIVERSITY OF BEDFORDSHIRE | 5 . thousands suffered with disabilities. At this particular time. environment. Hundreds of people lost their lives. the entire world was called for peace by world nations. The ethical practices were not spread throughout the world. People came to notice the importance of ethical business practices as they have seen the worst nightmare from greedy. It not only does affect the business but it has affects on the people involved in the business. A brief summary is specified on the implementation of business ethics in clothing industry thereby specifying the gist on the report by taking objectives. This incident shook the world. cruel businessmen. The scope of the project is also mentioned to help notice the opportunities in accessing the information for the report. There was no awareness among businessmen in most of the countries on how to run a business. After the end of the world wars. health of the people etc.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Chapter-1 Introduction This chapter gives an insight on the background of the ethics of business and the human rights standards.

2 ) Human Rights and its Standards Human rights are the rights which are entitled to the humans which allow them to live in a society with their fellow people. During the early nineteenth century. These rights gave the people in the world the right to freedom.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 1. Even though laws. United Kingdom. These rights are applicable throughout the world (which persists to all the humans in the world) but few rights vary from one country to other country (depends on the state of the country). the developed countries like Germany. “All human beings are born free and equal in dignity and rights. This practice is mostly done in the under developed countries where people are not provided good education and awareness on how to live in a society. we find people who do not know what human rights are. and France have conquered most of the smaller countries and have ruled them by treating the people in those countries as slaves. the right to speech.3 ) Human rights implementation in Businesses UNIVERSITY OF BEDFORDSHIRE | 6 . It has been six decades since the human rights have been into implementation but still there are people who do not enjoy these rights. 1. legislation.” (Article 1. human rights standards are globalized. human rights were formed and implemented. the right to communicate. right to equality with different civilizations.United Nations Universal Declaration of Human Rights. The awareness spread among all the people to respect each other which helped in development of a better society. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood. They are being used as slaves by the developed organisation which made them cornered in terms of living standards in the under developed countries. But for the 1st time in 1948. 1948).

This generally happens in employing child labour for the work as they are efficient and are paid low wages. Most of the businesses which practice these activities are from the clothing industry as they require a lot of labour to produce embroidery for the cloth. • • Understanding the importance of securing human rights for the working class. the labours in the industries establish a union for themselves in electing a people as the leader for the union who will communicate with the senior management to secure the rights of the labour. But few businesses go against the rules to earn money. Rules and Regulations of various governments on the imports and exports of clothing. 1. They are as follows• • Examining the common ethical values of businesses. It does so by considering the human rights for the workers in the clothing industry. Usually. According to the human rights of the people. Analysing the clothing industries which use labour to reduce the production costs.4) Objectives of the Report The major objective of this report is to examine “the relevance of upholding the human rights for workers”. A business would become successful when it is properly carried by the management. • Examining whether the clothing industries are performing ethical business or not. It involves maintaining good relation with the employees and customers.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Business is a trade which involves in providing services to the people in return for money. UNIVERSITY OF BEDFORDSHIRE | 7 . For a better understanding. • Identifying the globalized organisations which have production plants throughout the world. the employees must be dealt with due respect and in return this is applicable to the employees also to treat their higher officials with diligence. the report even considers few objectives apart from the primary objective.

the information that is useful for the project is available and accessible.6) Scope of the Project Unlike other projects or reports.5) Structure of the Report The report is therefore categorized into chapters starting with the introduction which specifies in brief about the background of business ethics thereby analysing the inner concepts and theories of ethical business using books. and websites as a part of literature review in the second chapter. Apart from this the limitations are also specified which will help in knowing the backlogs in the report. journals. The data collected from various sources needs to be analysed which opens a new gateway to study information. Fourth chapter briefly concludes on the case study on the human rights of workers in the clothing industry. all the major companies of the clothing industry throughout the world are considered. Starting with the lately established companies to the recently established companies. 1.BUSINESS ETHICS TOWARDS HUMAN RIGHTS • Differentiating the working conditions in developed and underdeveloped countries 1. Chapter-2 Literature Review UNIVERSITY OF BEDFORDSHIRE | 8 . Third chapter constitutes to be the heart of the report as it contains analysed data on the human rights. working standards of the workers in the clothing industry. Fifth chapter thus suggests the recommendations which are necessary in helping to reform the human rights for workers which would help them in freely performing their tasks. this report does not have a limited scope as there are numerous clothing industries which deal with the regular problems on the human rights for their workers. As a part of this.

and decision where issues of right and wrong are addressed. activities. human resource management. sales and marketing. journals published by different authors through years. a brief specification about the human rights for workers is provided.BUSINESS ETHICS TOWARDS HUMAN RIGHTS This chapter examines the theories about business ethics. A business has many wings like the finance management. The awareness among financial UNIVERSITY OF BEDFORDSHIRE | 9 .1) Ethics in Finance John Raymond Boatright (1999) has specified the need for ethics in finances would improve the functionality of the business as the finance holds a major part in the operations of a business. Running a business requires intellectual ability to tackle the activities associated with the business and the problems which occur through these activities should be solved ethically i. According to Andrew Crane (2007) “Business ethics is the study of business situations. To understand the problems which persist with the activities of the businesses. no person should be affected from the decisions on the problem. business ethics is explained with the practices of ethics in various business fields. If all these activities function in a proper way then a business is said to be successful with the ethics playing an important role in these activities. 2. decision or situations. There after human rights are discussed with the recent debates on the amendment of human rights. Much of the information has been taken from the books and is structured in a proper way.e. Firstly. website. Corporate financial managers are responsible for the myriad decisions from how best to invest the capital in the further growth of the business. production. technology. As the report is aimed to analyse the importance of human rights for workers in the clothing industry. human rights and its standards. It provides a clear understanding on the concepts relating to the key areas specified. The theories and concepts are explained from the compilation of books. Finance involves handling of money and so people who are trustworthy need to be given the management but ethics is beyond trust.” The author mentions the definition of business ethics in a precise way by pointing out the study on the issues over right and wrong of any business activity. we need to know the activities of the businesses initially. property rights.

Charging huge sum of money for the services would be unethical so the reduction of costs on the services will help the company in its growth. handling finances will be a difficult task and to be ethical is important for the success of the money. In this way. 2. concealment. we can understand how important finance is to be ethical. If a company is multinational then people expect it to be ethical by at least lending finances to support for causes. Duska (2002) are• Misrepresenting the financial products. spreading awareness on the usage of eco friendly products. • Intentional misrepresentation. beating the cancer. • The company should be loyal to the customers in terms of returns. including deceptive illustrations of possible returns • • Concealing of risk factors. money has become important for the human kind and to gain money. people are turning to become cruel. selling financial instruments. Some of the key points to explain how ethical a company is. or omission of the truth for the purpose of deception or manipulation to the detriment of a person or organisation (Downes and Goodman. Ethical issues in finances often occur which turn down the entire economy of a country as the finance is the driving tool for any economy. 1985) After understanding the general ethical issues.2) Ethics in Human Resource Management Raising issues in HRM on the ethical practices will help to make the rights and well being of the employees since the success or failure of the business depends on the UNIVERSITY OF BEDFORDSHIRE | 10 . are• Financing in the ethical programs like supporting the child education. Now a day.BUSINESS ETHICS TOWARDS HUMAN RIGHTS managers on the ethical practices while handling the public finances improves the trust on the financials there by helping the business to handle the ethical issues easily. Withholding full disclosure Internal trading if the business is in a financial sector involving mutual funds. The general ethical issues which occur in finance said by Ronald F.

shift systems. 1996:6). employing him by the HRM would affect the company. the performance of the employed candidates affects the development and services of the products thereby degrading the performance of the organisation. Unethical practises in the HRM will show their affect in two ways.BUSINESS ETHICS TOWARDS HUMAN RIGHTS ethical demands of the customers (Winstanley and Woodall. deceit in HRM will correspond to the doubtful ethical standards. One of such processes includes the recommendations of candidates. This is absolutely unethical in perspective of Human Resource Management.3) Ethics in Sales and Marketing | 11 UNIVERSITY OF BEDFORDSHIRE .As the organisation’s main source of productivity. 2. 1996:6) • The surveillance and control of employees (Winstanley. on the customers. HRM will weaken if it does not practise ethically thereby depriving the credibility of the organisation. Recently. On the other hand ethical practices will strengthen the agenda of the company and also increase the reputation of the HR managers (Legge. 1998). At present in the corporate world. The major ethical concerns in HRM are depicted as follows• Insecurity and risk as the employers tend to shift these risks on to the employees. 2001). Few of the HR managers even give away jobs to naive employees in return for money. • Deregulation and rhetoric. the importance of morality in HRM is recognised and attention is being paid over the necessary changes in the organisation. HRM is the main wing for any organisation as it should recruit employees for the organisation and any unethical or illegal activity in this process can damage the effectiveness of the organisation. Blindly.on the organisation. If a candidate is recommended by a senior level employee in the organisation then he shouldn’t be given job without doing the background check on him. This method is said be to backdoor entry. this kind of practise is often seen. Also because of this. flexible working contracts are the primary indicators of the problems (Winstanley. One of the best examples for this is the introduction of pay roll systems in place of paper work which allows the employees to sign in on their own rather than relying on a person for their entry. The newly introduced pay roll.

According to the arguments of Milton friedman and Ayn Rand it is said that ethics in marketing is just about maximizing profits but on the other side authors argue that ethics in marketing is to capture the customer base for the product/services of the business. type of the product. • Forthrightness in selling the products. • The ethical declaration on the fair use of the product. But. The terms and conditions should be outright on the designation of the employee. The best example would be that the labelling is user friendly which can be easily disposable. The health hazardous information should be specified while marketing the product which will help the consumers in knowing the risks involved with it. UNIVERSITY OF BEDFORDSHIRE | 12 . • Truthfulness in advertising the products. cost. De George(1993) refers to friedman statement as “Myth of A moral Business”. The employees should be given respect and be treated with dignity. This would help the company to achieve sales and profits but will ruin its reputation in the long run. • The issues relating to the unethical tactics used for gaining competitive advantage. Most of the general issues which are concerned with the ethics of marketing are• Declaration on the fair treatment and pay for the employees. The point of friedman is inaccurate and managers often see a positive relation between enlightened self interest and long term profitability (Smith and Quelch. the risks involved with it.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Marketing ethics has taken its shape in the 1990’s and has emerged as the most important tool for the success of a business. • The ethical practices of product labelling. They are only specified to attract customers and grab the market share. In general both of the arguments are true for their own reasons but the ethics in marketing is changing with the change in the operating style of the business. Representing the product would be unethical. The discounts which are offered on a product should be known carefully as much of the discounts are not applicable on many products. 1993). The first impression on the product can be obtained by its label which explains the quality. This is one of the best ways to market a product but the product should be introduced in a proper way by specifying all the pros and cons about the product.

Due to the strict law in the developed countries. Awareness programs are been in place to stop the unethical activities of the industries but are not so effective in the developing nations. technological.4) Ethics in Production Ethical issues in production are a very common thing which happens in a company. medicines. It may have a direct/indirect affect on the nature. if convicted then the entire organisation will be seized. 2. Destroying environment for personal benefits would be unethical and in this report we consider ethics in clothing industry and one of the concerns about the production in clothing industry is that leather is being manufactured with the skin of many animals. Apart from these issues. the production of cosmetics requires chemicals from the animal pigments. This would help in the future growth (expansion) of the organisation with a lot of appreciation and reputation. It’s better to be in the market for a long time by satisfying the customers. Any unethical or illegal activity would definitely fetch money in return but what is the use of obtaining such money? In this process. businesses are restricted to use limited resources or given permission to establish such businesses outside the cities. gases released into the air from the factories will affect the atmosphere. This would affect the living of the animals and other than cosmetics. This generally happens with the chemicals factories producing pesticides. Here what I have presented are the general unethical issues practised by the organisations but the importance of practising ethically are not been known. For example. All the factories in the clothing industry are situated outside the cities of developed nations giving them the opportunity to produce in an open environment by which UNIVERSITY OF BEDFORDSHIRE | 13 . one of the other ethical issues in the production phase is that during the production of products.BUSINESS ETHICS TOWARDS HUMAN RIGHTS An organisation can present itself in front of public with its services with the process of marketing. insecticides etc. Also unethical practises are against the law and order. the organisation which is unethical is losing its position in the market. pesticides are tested on plants and animals which needs to have a license. This is so because of the resources which are required for the production of a product are environmental. It is completely unethical and is against law to harm animals. The waste that comes out of the factory will pollute the water in the surrounding area. This would leave no space for the future establishment of a business.

Intellectual property rights are different from the ordinary rights as they involve sole proprietor ownership. 1988). Levine (2008) argue that “the government does not ordinarily enforce monopolies for producers of other goods. After many considerations it is said that “property is not essentially a ‘right to a thing’. before 50 years abortion was illegal and after 30 years it has become legal in few countries and now it is legal to abort a child in most of the countries. China as they can take advantage of the loopholes in the system. The property rights are classified into two categories.intellectual property rights and ordinary property rights. In the similar way the property rights have been changed since its establishment. W. Not all the businessmen like to start a new business in developed countries as it involves more costs. 2000). these businessmen are establishing their factories in the developing countries like India. cheap labour. buy. The ethical code in medicine 50 years ago is changed now for its own reasons. The advancement in the technology and science has minimised the barriers between good and bad. By the same is not happening in the developing nations.BUSINESS ETHICS TOWARDS HUMAN RIGHTS living people are not affected. Michele Boldrin and David K. This bundle includes the rights to sell. This is because UNIVERSITY OF BEDFORDSHIRE | 14 . This is showing a direction to the businessmen in the developed countries as they are finding it as an opportunity to gain more profits. J. and lease a part of land. 2. The rules and regulations on the property rights vary in different countries but ultimately they constitute in the development of the land (Cooter and Ulen. Some scholars argue that rights impose duties on others and property rights ever conflict with other protected interests. Property rights explain the relation among human and not just about a thing. For example. strict rules and regulations. The ethics in the property rights emerges with the recognition of the notion of the property (Singer. 2007:20). This might be one of the reasons for the establishment of factories in the developing countries apart from the low production costs. but rather a separable bundle of rights subsisting between persons which may vary according to the context and the object which is at stake”(Davis. right and wrong.5) Ethics in Property Rights According to Michael Benfield (1998) the code of ethics is changing with the change in circumstances. For this reason. The unethical issues are becoming more as there is no proper political support to abolish such practices.

(Roger B. So property is ultimately the resource which is owned by the business for the business. Toyota iQ car is a property for Toyota company. The general procedure in obtaining property rights for a business is to buy a land or building or manufacturing unit for the business. Intellectual monopoly is no different in this respect. The human rights helped to provide equality and freedom to all the people which restricts the employers in treating their employees as slaves. The question we address is whether it also creates social benefits commensurate with these social costs”. This is mainly done to stab a good business to beat the competition but this is unethical way of carrying a business.BUSINESS ETHICS TOWARDS HUMAN RIGHTS it is widely recognized that monopoly creates many social costs. Taney. “The right of property in a slave is distinctly and expressly affirmed in the Constitution”. 1857). One of the other properties of a business is that of the products it produces. This generally happens when the occupiers are politically influential/sound. The common issues which still persist in the ethical practices over property rights are• Intelligent employees are attracted from one company to work for another company in return for higher income. employees also become the property in a company which allows the employer to have a right to dismiss. The leaser/occupier should not sub-lease the land for his own profits without the concern of the landlord. Apart from the fixed assets/property of a business. They are the real property of a company. There was no ethics in the practices that existed centuries ago but recently with the ethical awareness among the civilization. UNIVERSITY OF BEDFORDSHIRE | 15 . These practices existed many centuries ago. constitution is still making the rich people to indulge poorer in slavery. it should be maintained in a proper way rather than treating it as if they own the land. promote his employee. Ethics come in when the property is properly used for the business purpose. Accordingly. There are even few rights which allow major companies to own their staff and specify the staff to work on whatever the employer specifies. the lack awareness and proper law. the ownership on civilization has been removed as a property owned by a business. For example: if a land is taken from the landlord for a lease of 5 years. While in the under developed countries.

music players. • Copyright violation is another unethical practice which generally reserves the right to not duplicate the original product. a person should also respect the law UNIVERSITY OF BEDFORDSHIRE | 16 . This indirectly points out to stealing the ideas. • Respect: the duty-bearer is given the right to respect which determines how to behave within the society • Enjoyment: the right is a freedom to do whatever a duty-bearer wants to until and unless it is against the law and is questioned by another person A human can use his rights in every aspect of his life and when ethics comes into place then these rights should be used for good purposes rather than indulging in bad activities. While utilizing the human rights. There are four primary dimensions for the practice of human rights-exercise. But what kind or rights are they? How do they work or help a human in his life? The question to these answers will help in understanding the importance of having human rights. enjoyment.6) Human Rights According to Jack Donnelly (2003). music industry in which copyright issues are a common concern. designs of a person and not crediting him for it. respect. electronic industry. human rights are “the rights of men” meaning the rights obtained by being born as a human. there are few industries like the clothing industry. For example: China is famous for duplicating any kind of product like the mobile phones. • Exercise: a right is exercised when the obligations of a duty-bearer are activated who may either respect the right or violate it. 2. gadgets which are of cheap quality and resemble in the same way of the original product.BUSINESS ETHICS TOWARDS HUMAN RIGHTS • Manufacturing or producing a product without taking the permission from the original designer or creator. enforcement. But. Producing such products is unethical in a business field even though they fetch you a lot of money. But when this is discovered then the business has to face the law which would ruin its reputation.

he or she. Jack Donnelly (2003) further specified in his book that the human rights are “equal rights” either one is a black or other is white. They are practiced at the time of pay negotiation. recognized.United Nations Human Rights Council established in 2005. The responsibility in implementing the human rights has been taken by many organisations throughout the world.7) Human Rights for the Workers These rights are also said to be labour rights which are meant to maintain a good relation between the employer and the workers.BUSINESS ETHICS TOWARDS HUMAN RIGHTS and constitution which have their set of rules which should never be crossed. Apart from this a worker is also given the “right to unionize” which means that a worker can form a union on this own with the support of his fellow workers. They are also said to be “inalienable rights” meaning the human is might be mentally retarded or with disabilities. (Core Labour Standards Handbook. 2006). It was in 1833 when the England government had recognised the need for labor rights. A human can’t oppose the law even though he can by utilizing his human rights. Council of Europe. International Labour Organisation was formed in 1919 to standardise these rights and by December 10th 1948 the below rights are been UNIVERSITY OF BEDFORDSHIRE | 17 . benefits. United Nations Security Council. It does not depend on the location in which they are working but a worker is universally given the “right to work”. Major of them are. the law is the superior governance. human rights are the same and they will have the right to hold human rights. Ultimately. safe working conditions etc. These rights allow people to form unions in the company to discuss about their problems. This was the age of industrialization and Karl Marx had called for the right for workers. Article 23 Further. This shows a clear picture that the rights given to the human are restrictive in few situations. the rights are applicable to one and all who are born as a human being. Association of Southeast Asian nations. 2. The main right which the workers have is the right to work.

1) Issues Over the Rights for Workers The major issues which are still being debated are as follows- UNIVERSITY OF BEDFORDSHIRE | 18 . Everyone has the right to rest and leisure. 2. Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity. The awareness among the workers on their rights is less stressed in the developing countries which make the naive workers to just obey the rules of his employer. 1948) Since its establishment. there are several articles which mention about the right for workers but mean the same. Everyone has the right to work. if necessary. (Source: The universal declaration of human rights. 2. including reasonable limitation of working hours and periodic holidays with pay. to free choice of employment. these rights are been continuing in the same way as they are as they have been universally approved by all the workers. it has not yet been understood by the workers. has the right to equal pay for equal work. Apart from these articles.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 1. and supplemented. Everyone. Everyone has the right to form and to join trade unions for the protection of his interests. the rights are obey and utilized by the workers. The equal pay for all the workers does not exist in the developing countries which explains us that the Human rights are not implemented universally which should be overlooked again by the United Nations General Assembly who framed the declaration.7. 3. without any discrimination. Whereas in developed countries like United Kingdom and America. by other means of social protection. 4. to just and favorable conditions of work and to protection against unemployment. Article 24 1. The implementation of these rights is been successful in developed countries whereas in the developing countries.

violation of human rights of workers by the businesses are brought forward by the media. The worker is given the right to ask for the over time from his/her manager but the maximum work done should not cross 48hours per week. Human rights watch (1988) has even sorted out few issues which include. UNIVERSITY OF BEDFORDSHIRE | 19 . • Discrimination in the work place is being treated as a crime but it still persists when considering the wage gaps between the genders. the work period was eight hours per day and later in 2000 France had established 35 hours per week. When the news is spread throughout the globe it minimizes the scope for further such incidents to happen. there are children who still work illegally.BUSINESS ETHICS TOWARDS HUMAN RIGHTS • The issue over the amount of time to work is still being a concern to the major organisations in the developed countries. Children are legally not allowed to work accordingly to the human rights but due to the economic backlog. Media is the only medium to bring out the facts behind any situation. The discrimination against the workers has been happening since ages and to sort out the issues on Human rights for workers. unsafe working environments leading to injuries and death of the people. There are a lot of issues on human rights in all the countries but are not been brought forward. However there is opposition to the increase from new economists as they consider the unskilled and entry level workers. 1988) • The most important issue regarding the workers is about the child labour. the United Nations is focusing on the awareness programs. all the businesses are conscious in making their moves in front of media. In the 19th century. Now a day. (Human rights watch. All the unethical practises. But this is done by media and is also solving all the issues with the help of public which reduces the pressure on the United Nations.non payment of wages. The United Nations has also known a lot about various unethical activities of businesses through media and is now concentrating to deal with all the queries in the world. underdeveloped countries with the help of media. • There was even movement from the labour to increase the minimum wage per hour which is still under consideration by the governments. by altering the rules in few countries and it is widening its watch on the developing. extended working hours.

In this process.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Chapter-3 Case Study on the Clothing Industry This chapter provides a general study on the clothing sector persisting throughout the world. the strategies which the businesses in the clothing industry use are explained briefly with the information provided on the structure of the clothing UNIVERSITY OF BEDFORDSHIRE | 20 .

1) Strategies in 1970’s The establishment of major companies had led to the implementation of new strategies which involved managing the textile as well as the clothing simultaneously. the businesses expanded too many countries to capture the international markets. Wal Mart (world’s No.1) General Study on the Clothing Sector Clothing sector is a labour based sector which allows unskilled people for the entry level jobs. 3. This process ultimately reduced the production costs. This mainly included rules on the imports and exports of the manufactured goods. It has been established centuries ago and since then it has been introducing variety of clothes for the mankind. and the shifting was flexible enough. 3.1. On a whole. Also.2) Structure of the Clothing Industry UNIVERSITY OF BEDFORDSHIRE | 21 . the general rules have been liberalised according to the agreement on tariffs and trade.1. 3. employment in the clothing industry is observed with respect to the human rights and a clear picture of the employment in developed as well as developing countries is presented. There is no need for any qualification in order to work in this sector. Through the supply chain. A general analysis is also made on the implementation of business ethics in the clothing industry and the necessary code of conduct is depicted which is generally used by the clothing businesses. Every country has got the resources for the manufacture of clothes and the clothes with good quality generally get exported to other countries. Recently in 2005. The retailer indulged into these practices were in supply chain management is used to carry on the proceedings.BUSINESS ETHICS TOWARDS HUMAN RIGHTS industry. the Agreement on Textile and Clothing regulates the businesses in the textile and clothing industries. This change had affected many industries in quite a large way. Both of them need to go hand in hand to manufacture a finished product. The primary means for clothing industry is the textile industry. Because of such a change. the need for workers tremendously increased. Rules and regulations have been introduced on the functioning of clothing industries in the late eighteenth century.1 shopping mall) has used this technique in expanding its services.

uniforms exits. One of the two major segments in the industry is the fashion driven market which involve in producing clothes designed from professional designers with well skilled workers and is characterized by latest technology. undergarments. 1999). the industry is also being modifying itself with modern technology which helps in producing high quality clothes. Unethical practices are dominating the ethical practices is being brought into media often. These markets exist in developed countries like America. a market with mass production of clothes like tshirts. With the emergence of retailers. (Hildegunn Kyvik Nordås. outsourcing. “Substantial changes in the retail sector have been observed during the past few decades and modern retailing has been called "lean retailing" in a recent comprehensive study” (Abernathy et al. The competitive advantage in this market is the ability to put up innovative designs for the fashion lovers. it has become complex yet precise to understand. Apart from the change in the structure.. On the other side of the industry. China.BUSINESS ETHICS TOWARDS HUMAN RIGHTS The sector is well known for its innovative. and France in which people encourage fashionable clothes with high quality. 2001). 2004). With the change in science and technology. fashion in the recent years. This market constitutes females workers as the major part and almost all the finished goods are outsourced to various countries including the developed countries. the working style of the industry has also been changed due to which the business ethics is being inappropriately practised. “retailers accounted for half of total garment imports in the European Union in the mid-1990s. Fashion is playing an important role in the present markets. creative aspects. Mexico having semi-skilled employees. the industry has been divided into two major categories consisting of businesses (Navaretti et al. a trend that probably has continued during the second half of the 1990's”. UNIVERSITY OF BEDFORDSHIRE | 22 . Talking about the scope the mass production market has a lot of scope as their products are cheap and are mandatory for the living of human. The quality of these products is relatively low when compared with the other segment of the market. England. labour. Turkey. This type of market is generally found in the developing countries like India. The structure of the industry used to be precise but with all the changes in terms of technology. According to Gereffi (2001).

The need for this to take place is the dominance of the industries in the developed countries over the production and supply in the developing country. Italy is claimed to be the world best in the production of clothes. But in the informal side. This one way approach is not ethical when compared to the business in the developing countries so a standard code is required which would reduce this approach and give a greater social dimension to the clothing industries activities. the textile and the clothing industry accounts for only 7 percent of the employment in the UNIVERSITY OF BEDFORDSHIRE | 23 . It is also spreading awareness on the economic importance of providing decent working conditions.2) Business Ethics in the Clothing Industry For any business to be started. helping their workers in their daily needs. Recently. the clothing industry has revised the code of conduct and has standardised it. Much of the working style of businesses in the formal sector has been adopting human rights at work. external trade partners. One of the important codes to be introduced which is being debated is the “ethical ranks” which would help the enterprises in the developing countries as well as developed countries. the working and living conditions of the workers would change. The trade partners in the developing countries for the industries in developed countries are always seen as the suppliers who must follow the code for the order placed by a foreign company. and labour legislation. According to the commission of the European communities or the union (2003). Hopefully with the implementation of proper codes.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 3. there is no change in the working style as it indulges people with illiteracy and unskilled. code of conduct is to be followed in running it successfully. 3. These codes directly or indirectly refer to the standards of the International Labour Organisation regarding the human rights at work. This code of conduct is a set of rules which restricts the business in implementing unethical practices.3) Employment in the Clothing Industry America and Europe are the two major continents where clothing industry has its major activities. At present the governments in the developing countries are encouraging the people to promote ethical values and human rights at work. It has not been much successful though but we can expect a good result within few years. These codes are proposed and discussed with the employers and workers association and a feasible solution is derived in introducing the concept of ethical ranks.

Poland. This is done to reduce the production costs and improve the quality. France. UNIVERSITY OF BEDFORDSHIRE | 24 . Marks & Spencer (one of the leading retail group in Britain) has its clothing manufacturers in South Africa. Establishing a factory in the developed country requires a lot of investment instead using the same investment would help in establishing a factory in the developing country and importing the finished goods. and Italy and among the developed countries only Spain and Portugal have managed to be having an increase in the employment for workers. On the other side when survey is conducted on the employment in the developing countries.BUSINESS ETHICS TOWARDS HUMAN RIGHTS entire manufacturing sector. As most of the businesses in the developed countries had opted to use this practice.7 million in the textile and clothing sector. it can be analysed that the this situation were employment for workers has reduced in the developed countries and is increasing in the developing countries has been existing due to the outsourcing of the manufacturing and production of clothing. the employment in the textile as well as the clothing industry is considerably reducing since 1995. the factories and employment in the developed countries have been reduced thereby increasing the manufacturing units. Mexico. United Kingdom. Canada. For example. China. The businesses in the developed countries is opting the developing countries for its manufacturing of products. Romania. and Morocco. From the surveys and the other data. employment for labour in the developing countries. This is mainly observed in the developed countries such as United States. these countries have shown a progress in the employment for workers especially in the clothing sector. it is found out that the employment opportunities are increasing so do the employment for workers in India. This would also provide feasible solutions to many issues regarding the profitability. Since 1995. Germany. the European Union is thinking to employ 2. But after the amendment in the general rules in 2005. According to the surveys conducted by the International Labour Organisation.

Apart from these two organisations. UNIVERSITY OF BEDFORDSHIRE | 25 . In this process.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Chapter 4 Analysis This chapter analyses the strategies of the clothing organisations to prevent to the violations of human rights and to practice ethical values. few other smaller organisations are also analysed. Primark and Levis Strauss are been taken as an example and are evaluated.

1) Primark: Primark is one of the largest retail companies in United Kingdom with 138 stores running throughout the country. Burberry are the well established-old players in the market. and Nike which are very popular for sportswear. In 2008 an investigation carried by British broadcasting UNIVERSITY OF BEDFORDSHIRE | 26 . It is famous for selling clothes with low price and innovative and simple designs. French connection are the new players in the market. Because of this the competition between the organizations is increasing rapidly and most of the companies are indulging in unethical practices to stay ahead in the competitions. gap. cultures of new generations. But now the clothing industry has been changed according to the tastes. the older companies which are established decades ago are still surveying in the competitive world.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Introduction on Clothing Industries As we know clothing industry is old and traditional industry which has been running successfully since centuries. wrangler. Though it’s not a clothing based company. while Abercrombie and Fitch. In the present world the fashion is given more importance as it produces innovative. But these are only fashion oriented companies. In this process there are many clothing companies which are being established every year as there is a lot demand for fashion. These countries include mainly developing countries like India in which Primark has its maximum suppliers. creativity designer wears. Two of such organisations will be analysed further4. Levis Strauss. With the emergence of fashion industry and increasing demand for fashion wear all the clothing companies have diverted themselves in producing fashion wear. This project intends to analysis the business ethics in clothing industry so it is necessarily important to understand weather the clothing companies are practicing ethical values are not. we also have sports oriented companies like Adidas Reebok. A part from the newly established companies. The clothing industry is now collaborating with fashion industry for the manufacturing of cloths. The top fashion oriented companies which are famous in the world are. it has become successful by outsourcing the production of its cloths to different countries.Pepe jeans.

This was completely denied by Mary. The Tirupur exporters association (TEA) in India have supported Primark by justifying that the children who were found at the working site are just helping their parents after school. It started in 2008 when an investigative journalist of panorama. UNIVERSITY OF BEDFORDSHIRE | 27 . However.2008) Generally in India there is lot of corruption. ultimately Primark will be bearing the blame over the child labour. a psychologist in Indian NGO. Primark has completely denied the fact that it was involved in employing child labour but it’s the responsibility of the Primark to assign contracts to suppliers who perform ethical business. Mary specified that the SAVE organisation will be raiding all the factories with an intension to find out whether the business are practicing child labour or not. this is helping the bigger organisations to tackle allegations over their illegal practices.Dan MacDougal visited Bhavansigar refugee camp (70miles north of Tirupur. She had questioned TEA on how there is no child labour in tirupur. no security. When we look at the above scandal we can observe that Primark is not involved as the entire scandal rotates on its suppliers. These children worked for the suppliers of the Primark. but the Primark has no information on child labour. It is necessarily important for Primark to look into its suppliers while giving the contracts which it hasn’t managed properly.SAVE (social awareness and voluntary education).BUSINESS ETHICS TOWARDS HUMAN RIGHTS corporation (BBC the panorama) has revealed that the suppliers of the Primark are practicing unethical activities such as employing child labour.(Ethical consumer. It ultimately specified that ”There is no child labour in tirupur”. In such raids they have found out that on an average 250-300 children are working per year within the factories. Primark might have also done the same to acquire the support of the organisations to come out of the scandal. The code of conduct of the supplier should be checked before assigning the contracts. It was Dan MacDougal (The Panorama) which revealed the situation persisting in Tirupur. SAVE is the organisation is intended to eliminate child labour and working in hand to hand with NGO since 1994. south India) and found out that Tamil children aged below 9 yrs are working for Primark garments in dark rooms with no proper wages. She expresses her views over this situation that she has been observing child labour since years and many of the reputed organisations are denying this fact.

Unlike in western countries. In addition. NGO’s like SAVE have reacted strongly to the situation and blamed Primark for sacking the suppliers. They expressed their views to re-employee the sacked suppliers so that the UNIVERSITY OF BEDFORDSHIRE | 28 . Primark might not be aware of the subcontractors but it should be responsibility to look into its supply chain as its a reputed organisation. The end result of this scandal is that the Primark has sacked three of its Indian suppliers. This created a sensation as many employees have lost their jobs. big organisations like Primark intent to approach suppliers in developing countries and give out their mass order. Geoff Lancaster might be true. It even affected Primark as its sales in that year have decreased. Primark) claimed that it is impossible for any organisation to handle its supply chain when it is outspread throughout world. Thousands of workers will be working under contractors as well as the sub contractors and they will be under immense pressure in producing the garments with in time.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Geoff Lancaster (head of external affairs. The suppliers will have no choice rather than to process this orders as they are economical poor background. According to Ruth Bergan (Home workers worldwide) criticises that the pressure which is created on employees is due to the mass ordering of the retailers. But in Tirupur this isn’t observe as there are employees who even work 24hrs a day. It’s the contractors and subcontractors who need to take care on the safety and security of their employees. Employees in Tirupur are not paid either on hourly bases or a minimum wage. 6000 factories and 5000 sub contractors. As this zone is especially reputed for clothing sector. The truth in the words of Geoff Lancaster can be noticed when we closely look into the working conditions of tirupur. the suppliers tend to put pressure on their employees as there are no rules and regulations over the working conditions of the employees. Ultimately. But these suppliers may not handle the large orders from there retailers and they indulge in subcontracting. By this we can conclude that there is some truth in the words of Geoff Lancaster that Primark is unaware of its subcontractors but in illegal terms it needs to conduct a background check of its suppliers as well as the employees working under its suppliers. Tirpur is a place having more than 1000 exporters. the retailer giving the contracts will not take the responsibility in overseeing the manufacturing process as he believes in his suppliers. This is an open zone for big retailers to give away their contracts. he specifies that his contractors might have subcontractors on which he is unaware off. To reduce production cost and labour costs.

no security. Sam Maher states that “if Primark is the ethical company it claims to be. the organisation has involved in a scandal in which its clothes were manufactured in six factories situated in Northern Mariana Islands by Chinese labour under “slavelike” condition according to the United States Department of Labour.1 in America decades ago but now it lost its position in the markets. Until the 1980’s. It had its varied way of manufacturing clothes which no other company came up with. From which it had adapted to the use of “Stone Washing Technique” for its production.” TEA has already put in a clause that company like Primark have to share. Through the years the organisation had acquired many small. This led to the change in the strategies of Levis Strauss and the organisation had adapted to outsource its production work to the other countries.2) Levis Strauss & Co: Levis Strauss & Co is a famous and well reputed organisation established in 1853 in California. The organisation has become wanted for its wide range of denim jeans. The company has been the No. Many new firms were established which were competing with the well established firms and also the cheap products were imported from other countries which attracted customers. It was in late 1920’s that the company actually started introducing modern ware along with the continuation of its denim jeans. Levis Strauss had no competition from other clothing organisations. There are no proper wages. the company had to face difficulties as it has been accused of indulging in unethical practises. it would put more energy into ensuring these job were carried out in decent conditions and for wages that provided a dignified standard living. In 1991. It UNIVERSITY OF BEDFORDSHIRE | 29 . During the 1960’s and 1970’s the growth of the company was enormous as the younger generations went crazy for the varieties of denim jeans. In its early stages it had just concentrated on the traditional clothing with the addition to the normal denim jeans. and no safety provided by Primark so how will they have the right to make their employees homeless. The era was named as “blue jeans craze” for the organisation.BUSINESS ETHICS TOWARDS HUMAN RIGHTS employees working under them will not be homeless. 4. In this process. big firms such as Great Western Garment Co. But it had started in 1990’s in the period which the clothing industry in America has been driven with fashion and innovative new designer wares. They felt that big organisations should look into its suppliers before giving the orders as it might be a part of money involved but it involves thousands of employees.

These practises were brought under the jurisdiction and the organisation was ordered to pay a huge sum of penalty. Now. An activist group named Fuerza Unida (United Force) was revolting against the organisations which violated the human rights for workers and treated the workers like slaves.BUSINESS ETHICS TOWARDS HUMAN RIGHTS was even accused for paying fewer wages to the workers with 12-hour shifts every day in a week. Tan Holding Corporation a Levis Strauss subcontractor was named after paying the largest fines in the US history. $9 million was given as restitution to the employees. In 1996. The company had even promised to pay out the dividends for its workers worth $750million for the next six years but it had never done so. UNIVERSITY OF BEDFORDSHIRE | 30 . The activists had targeted Levis Strauss for its involvement in violating labor policies and protested with hunger strike. Since the establishment of the organisation. This was a surprise to all its customers as none of such scandals had taken place till then. corporate social responsibility rules. From this stage the fall of the company has been observed leading to continuous losses for the consecutive years. Until now. The movements on the human rights for workers by the private organisations were in full flow during this period. As a multinational organisation. 4. it was operated by the family members of Levis and it continued for more than five decades. the report discussed about the unethical practises of Levis in its 1990’s and the after affects it faced because of them. Levis Strauss claimed it had no knowledge on the procedures adapted by its subcontractors and is entirely not involved in the unethical practises. the company had to face heavy financial problems involving in multi-billion dollar debt also leading to the left out stock to be bought by the family members of the company. sit-ins in front of the head quarters in San Francisco. the report depicts the analysis on the causes of its unethical practises and the opportunities created by Levis for its workers. Immediately.2.1) Corporate Social Responsibility of Levis Strauss Karl Schoenberger has analysed Levis Strauss on the basis of its corporate social responsibility since it has grown as a multinational organisation and he feels that the organisation was the first among several in framing the ethical.

When all the other multinational companies were expanding their services to all the major countries in the world in 1993. But the scandals had affected the organisation so badly that it was unable to plan out new strategies as it lack finances and in 1998 it had even taken the decision to not to divest from the country. These companies have been in the market since decade and had obtained a position for themselves and further the strategies of any of such companies would be to maintain their position. But in reality the company had no intension to indulge in activities which would ruin its further growth. Ultimately. Levis Strauss has removed its operations from its factories in Burma in 1992 as it was accused of violating human rights. (Source: Compiled from Levi’s Children: Coming to Terms with Human Rights in the Global Marketplace by Karl Schoenberger. it had framed a set of ethical guidelines in which it gave special importance to ethical values. The company has also faced few criticisms in not revealing its growth strategies to its shareholders which made them believe that the organisation is indulging in unethical practises. It was the first organisation to publish a statement that the organisation operates in an ethical way without affecting its employees and its customers. Levis Strauss was against this practice and it had withdrew its operations from China as it found that major of the factories in china do not obey the code of conduct. It even protected against the issue of contracts to such factories as it would be unethical as these factories have no social responsibility. Karl Schoenberger argues that the present situation of Levis Strauss has been seen because of the inefficient capability of the management as it has trusted its subcontractor in the manufacturing process.BUSINESS ETHICS TOWARDS HUMAN RIGHTS it had planned to implement ethical practices involving human rights for its workers. the arising issues in the factories of the organisation are a perfect example of the complexity in the modern manufacturing sector. Karl Schoenberger strongly opposes the involvement of Levis Strauss in all the scandals as he explains from his observations that all the multinational companies are aiming to stay ahead in the market without concentrating on the maximizing their profits. even though the organisation has tried hard to be ethical and moral. 2000 published in Harvard Human Rights Journal) UNIVERSITY OF BEDFORDSHIRE | 31 . To be ethical and loyal to its customers. In 1975. Then after it was the first organisation to implement the code of conduct on its international business operations.

the organisation had not involved in further scandals but it couldn’t gain back its previous legacy and had to face losses for nine times in ten years.1 retail store) for the exclusive sale of its Signature Jeans until 2006. After the scandal in 1991. the ethical ranking of Levis Strauss has dropped from first to fifth place. But again in 2007. But some part of its work is being outsourced which lead to the transfers of the employees working in America to the newly established units. Industry analysts argue that the living wage provision will eliminate the discrimination against the garment workers explaining that amongst the workers. China indulged in the activity of issuing contracts to the factories whereby it’s the responsibility of the factories to employee the labour. the garment workers are paid with lesser wages and to eradicate this. The panel had stated that it is very difficult to adapt to the change which is obeyed by all the other member organisations but Levis had opposed. As it has been established in America. After all the allegations. For the first time in the entire century. Ethical Trading Initiative (ETI) is a non-governmental organisation which is a union of multinational companies having a disciplinary panel which would analyse the ethical values of the companies. the organisation in 2002 had taken a decision to collaborate with Wal-Mart (No.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 4. a minimum wage UNIVERSITY OF BEDFORDSHIRE | 32 .2) Further Analysis on the Organisation Strategies and the Employment of Workers Inside and Outside of the Home Country As we know. The outsourcing to developing countries like India. It had even sold away its subsidiary companies to clear its financial problems. The workers working in the factories in India are not given opportunity to work in the factories in China as it involves huge costs. Levis Strauss has come out of this organisation after refusing to implement “Living wage provision” of the ETI’s base code. It was because of the suspension of Levis Strauss from ETI. few of its production units and its head quarters are established in the home country employing the workers belonging to the same country. Levis Strauss is a multinational company with its operations in all the major countries. it has been accused of violating the code of the ethical trading Initiative. for which it has been suspended. The organisation was not in to news involving in to bad practises through the years until 2007. So the practise of employing the workers belonging to the same country is often encouraged by Levis Strauss.2.

BUSINESS ETHICS TOWARDS HUMAN RIGHTS provision will be implemented. In the same way. Beating all these companies are next. 4. and John Lewis are being accused of exploiting the workers in Asia. The result was the organisation had a very disappointing approach towards the human rights for workers.3) A Study on the Other Companies in Clothing Industry Apart from just Levis Strauss and Primark. M&S and other companies. In a recent study conducted in 2009 by Labour Behind the Label. Asda. living wage provision is being accepted by the organisations in the ETI but in reality the companies are not following the base codes because of which the clothing workers are not being paid the exact wage which is intended for the improvement of their living conditions. there are several other clothing industries in the world which are involving in the same kind of practices. Primark and M&S were also awarded 3/5. Asda. (Source: Rebecca Smithers (2009). high street retailers including Tesco. The next position was taken by Tesco as it has been graded 3/5 which was acceptable as the organisation was trying hard to improve its workers conditions. Levis Strauss. Sainsbury’s stood in the next position with a 2/5 grade and still remains to be below average. Levis Strauss is better in this perspective. John Lewis had refused to take the survey but the Labour Behind the Label had evaluated the organisation in terms of its policies towards the human rights for workers. This is absolutely ethical and the protests against it will be strongly opposed. new look and monsoon who were given 3. Unlike. Primark.5/5 which was appreciable when compared to others. In 2007. The report stated that around 25 high street retailers were graded between zero to five over their commitment towards the living wage provisions to their workers and the result has come out to be in the following wayThe lowest committed company is Levis Strauss which refused to pay the living wages to its workers. High street retailers accused of exploiting workers in Asia ) | 33 UNIVERSITY OF BEDFORDSHIRE . One of the good things when analysed the unethical side of Levis Strauss is that it has not been accused of employing child labour which is also a violation of human rights. Gap. gap.

While this is UNIVERSITY OF BEDFORDSHIRE | 34 . the employment of professional people with good academics is given more importance than the workers. In reality.3%. Because. The number of unemployed people had rose to a record high of 191. developing nations.3 million which is more than half of the entire global rise.7% but the worst affected are the middle-east and North Africa were unemployment was 13. the workers are paid less wages when compared to people with professional qualifications. the world had seen a sharp increase in the economies of the developed. In sub.85 billion workers are living on less than $2 per day which is below the poverty line.4) Employment for Workers Until the recent recession in 2007.3% which was steady since the two years but in 2005 it rose to 7.7% in 2005.Africa the unemployment rate remained 9.Out of all these.8 million in spite of the growth in the economies rising by 4.8% and that of britain’s was 5%.5% in 2004 and increased to 9. the unemployment rate was 9.3%.2%. this is creating an opportunity to the developing countries in Asia to employ more labour for carrying the work.6% recording the highest in the world. According to a report published in 2005 by the International Labour Organisation. This is mainly observed in the developed countries like Latin America. In 2004 the unemployment rate was 7.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 4. In central and eastern Europe. Asia remained to be the lowest in the unemployment rate with just 3. we can observe that the practise of outsourcing a part of work to the developing countries by the developed nations is one of the main reasons. it was observed that the improvement in the economy of countries is not improving the employment opportunities. On a whole the entire unemployment rate in the developed countries was 6. the director of International labour organisation. Due to this the need for workers in the developed countries is coming down as most of the organisation’s production work is carried in the developing countries. According to Juan somavia. With the IT industry booming throughout all the countries. Around half in the 2.the unemployment problems are increasing year by year and the economies are not concentrating on providing jobs for the unemployed or increasing wages by utilizing the growth. Caribbean where the unemployment rose by 1. It is also stated that the service industry is growing rapidly through the years and is expected to overtake the agricultural sector and this is been observed as only 5% of people work on lands in developed countries. When analysing all the factors which lead to this situation.

(Source: Ashley Seager (2006).5 Conclusion This chapter gives a brief conclusion on the entire report keeping in mind of the research and analysis on the human rights for workers. The ratio of employment to population is also falling rapidly. the other is the increase in population in the African countries. ethical activities I hereby conclude that the ethics in UNIVERSITY OF BEDFORDSHIRE | 35 . From the entire research on the clothing industry and the implementation of the human rights for workers. Global Jobless rise hampers efforts to cut poverty) Chapter .BUSINESS ETHICS TOWARDS HUMAN RIGHTS expected to be one of the reasons. Even the report shows that the unemployment rate is increasing drastically in the developed countries while the situation is reversed in the developing countries.

This is being spread in all the organisations throughout all the industries because of which the customers are paying heavy prices in contrary companies like Primark are defending themselves from not indulging in violating the human rights but because of the cheap clothes produced by them. the employment opportunities in the developing nations like India. This tells us that whoever is involved with the clothing is being suffered except few customers who do not bother how their clothes are made. the multinational companies are not paying proper wages to their employees. The hard work of the workers is lost in reality as these cheap clothes are used and thrown in the developing countries. On the positive side. This shows the media is having more corporate social responsibility than the clothing industries. The emergence of media has helped in controlling the system to some expect as it had brought awareness on the misuse of clothes.BUSINESS ETHICS TOWARDS HUMAN RIGHTS business is being overseen by the businessmen and the same is continuing in the clothing industry. the employees in the outsourcing countries are being unethically treated which is not being noticed in the developed countries. Not only the new organisations which are established recently but also the older organisations which are established centuries ago are being indulged in all these scandals. and Philippines have increased in the garments industry which is ultimately improving the economies of the developing countries rather than the developed countries. The wages that their employer pays may be less but it is accepted by workers as its better to earn something rather than being unemployed. its competitors like Asda. UNIVERSITY OF BEDFORDSHIRE | 36 . This is because of the increase in competition. If one organisation is performing the unethical activity then their competitors are doing the same to gain profits. China. All the scandals are brought forward by the media. While the smaller companies are degrading the quality of clothing. Due to the process of outsourcing. Tesco are doing the same which is degrading the quality of the clothes by wasting a lot of resources for their manufacturing. There are no revolts carried on by the workers against the factories till now but the workers are expressing their intension when they are questioned. greed for money.

6 Recommendations This chapter suggests few recommendations observed by the author during the process of the research and analysis on the organisations in the clothing industry. UNIVERSITY OF BEDFORDSHIRE | 37 .BUSINESS ETHICS TOWARDS HUMAN RIGHTS Chapter.

• To abolish the child labour. a day can be divided into 3 shifts each shift having 8 hours with a certain number of workers in each shift according to the factory conditions. The intension behind these programs is that the parents should use the additional money only for the education of their children rather than utilizing it for their own purpose. With a shift system in place. I would suggest them to acquire a factory and run the factory according to their rules and regulations. Organisation’s license should be cancelled if the organisation is proved to be unethical. For example: A clause specifying that people should have a minimum qualification before applying for the employment in factories will minimize the risk and will restrict the violation of human rights. the multinational companies should introduce a system in which the workers are given additional amount with their wages for the education of their children. • Shift system should be introduced in the factories as the workers are being worked for more than 12hours per day. • As the multinational companies are spending costs on outsourcing their work to the unknown factories in developing countries. Because of this the UNIVERSITY OF BEDFORDSHIRE | 38 . This would improve the situation of the workers as the management will be aware of the working conditions in its own factories. Clauses should be mentioned in the agreement between the multinational organisation and the factories involving the regulation of the employment for workers. • The government in the developed countries should look into the unethical practises of the organisations and strict rules should be implemented on the procedure of outsourcing their work. This procedure will improve the productivity and will lead to the expansion of its services as the production is being carried out throughout the day. I feel that the at present system in the existing clothing industry should change and in this process I suggest few changes based on my observations• Companies need to regulate the employment of workers in their factories.BUSINESS ETHICS TOWARDS HUMAN RIGHTS After analysing the industry by taking into consideration of all the multinational companies. Awareness programs should be in place where the workers will be taught about the importance of education for their child’s future.

Dunlop. M.T. and Weil. Lean Retailing and the Transformation of Manufacturing – Lessons from the Textile and Apparel Industries. References 1) Abernathy. Levine (2008).H. J. D. London: Cambridge University Press UNIVERSITY OF BEDFORDSHIRE | 39 .. Oxford: Oxford University Press.BUSINESS ETHICS TOWARDS HUMAN RIGHTS organisations will move in the right path following the rules and regulations leading to the ethical business. J. and David K. F. 1999. 2) Boldrin. Hammond. Against intellectual monopoly..H.

4: 451-70. (2003). 13) Norman E. Employee relations: understanding the employment relationship. The Global Textile and Clothing Industry post the Agreement on Textiles and Clothing. A. UK: Blackwell Publishers 15) Schoenberger. New York: Groove Press. "Global sourcing in the US apparel industry". J. 2001. UNIVERSITY OF BEDFORDSHIRE | 40 . Ithaca: Cornell University 6) Foote..BUSINESS ETHICS TOWARDS HUMAN RIGHTS 3) Crane. 2001. A. K.B. Journal of Textile and Apparel. 8) John Raymond Boatright (1999).K. A. Falzoni. 2001. (2007). Turrini. London: Routledge 4) Crane. H. 7) Gereffi. Ethics in Human Resource Management. (2000). (2004). Switzerland: World Trade Organisation Release 11) Lewis. "The Question of Ethical Hypocrisy in Human Resource Management in the U. Technology and Management. (2003). A. Bowie (2002). 2nd Edition. and Irish Charity Sectors". 34. G. 10. D. G. morality and the natural environment. Universal Human Rights in Theory and Practice. (2000). UK: Blackwell Publishers 9) Köster. UK: Pearson Education Limited 12) Navaretti. Journal of Business Ethics. Marketing. The Blackwell guide to business ethics.. 2. Germany: Druck und Bindung 10) Kyvik Nordas1. A companion to business ethics.. p. "The decision to invest in a low-wage country: Evidence from Italian textiles and clothing multinationals". New York: Oxford University Press 5) Donnelly. Levi's Children: Coming to Terms with Human Rights in the Global Marketplace. 1:25-38. 1: 1-5. Ethics in finance. Massachusetts: Blackwell Publishers 14) Robert Frederick (1999). M. Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. (2002)... Journal of International Trade and Economic Development.

and Corporate reputation.ethicalconsumer.com/news/levi-strauss- UNIVERSITY OF BEDFORDSHIRE | 41 .as px [Accessed:04 August 2010] 3) Finkelman (1997). United Kingdom: Cambridge University Web References 1) BBC News Channel (2008).uk/1/hi/business/7456897. Primark hit the headlines in June 2008 when the BBC’s Panorama exposed child labour in the company’s supply chain in Tirupur. India.independent.org/wgbh/aia/part4/4h2933t. R. Contracts. [Online]. [Online]. Litigation.com (2007). Available at: http://www. (2005).pbs.html [Accessed:02 August 2010] 5) Jean-Paul.co.stm [Accessed:04 August 2010] 2) Ethical Consumer (2008). Available at: http://www.htm [Accessed: 18 July 2010] 6) Just-style. Business ethics in the textile. New York: Oxford University Press 18) Thomas. Available at: http://www. “Marketing Strategies for the Ethics Era” MIT Sloan Management. Available at: http://www. 1993.co.html [Accessed: 27 June 2010] 4) Hickman.. S. US: Levi Strauss suspended from Ethical Trading Initiative.org/public/english/dialogue/sector/papers/bzethics/bthics10. [online]. [Online]. [Online]. Available at: http://www.just-style. clothing and footwear (TCF) industries. N. Available at: http://news. Property.bbc.uk/news/uk/this-britain/primark-isnamed-as-least-ethical-clothes-shop-518600. [Online]. 4:85-97 17) Thomas J.org/CommentAnalysis/CorporateWatch/primark. Economics of the Law: Torts. Primark fires child worker firms. M. Miceli (1997).ilo. 36. C. (2005). Dred Scott case: the Supreme Court decision.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 16) Smith. Corporate Governance. Business Ethics. Primark is named as least ethical clothes shop. (2000).

aspx [Accessed:06 August 2010] 7) Lisa. [Online]. (2006). [Online]. R. [Online].guardian.BUSINESS ETHICS TOWARDS HUMAN RIGHTS suspended-from-ethical-trading-initiative_id96509. Available at: http://women.uk/tol/life_and_style/women/fashion/article415077 1. (2008).co. A. Available at: http://www. [Online]. Asda. Available at: http://www. Core Labour Standards Handbook.adb.com/primark-acts-on-unethicalsuppliers/5001110.co.(2001).pdf [Accessed: 27 June 2010] 9) Mathiason. [Online].article [Accessed:06 August 2010] 14) Smithers.uk/file. Available at: http://www. Available at: http://www.(2006). The dilemma of ethical clothing at Primark.uk/business/2009/jan/11/primark-ethical-businessliving [Accessed:04 August 2010] 11) McVeigh. Available at: http://www.uk/business/2006/apr/23/ethicalbusiness. [Online]. (2007).co.globalisation 1 [Accessed:25 July 2010] 10) McDougall.primark. J. Qureshi. A statement from Primark Stores on Bangladesh.drapersonline.timesonline. D.co..guardian.ece [Accessed:02 August 2010] 8) Manila. H.Aglionby. Available at: http://www. D. N.guardian. p. Primark in storm over conditions at UK supplier.org/documents/handbooks/Core-Labor-Standards/CLSHandbook. E. (2009). K. Primark acts on unethical suppliers. Primark and Tesco accused over clothing factories.axd? pointerid=aaa35e9fc6ac48dd8cad154251357988&versionid=df827009d85b4b 00a2b991daa0b33575 [Accessed:04 August 2010] 13) Seares. (2009).co.uk/business/2007/jul/16/supermarkets. (2009). [Online]. [Online]. The true cost of cheap clothing.retail2 [Accessed:04 August 2010] 12) Rogerson. Available at: UNIVERSITY OF BEDFORDSHIRE | 42 . High street retailers accused of exploiting workers in Asia.

Available at: http://www.guardian.guardian. [Online].shtml#a1 [Accessed: 15 JULY 2010] 20) Whitehead.org/en/documents/udhr/index. Available at: http://www. [Online].co.shtml#a1 [Accessed: 15 JULY 2010] 19) UDHR (1948).maquilasolidarity.org/en/documents/udhr/index.org/en/documents/udhr/index. Available at: http://www. [Online].co. Available at: http://www.un.un. Available at:http://en. M.(2007). (2008). Article 1: United Nations Universal Declaration of Human Rights [online].co.uk/money/2009/oct/07/retailers-factory-workers-asia [Accessed:08 August 2010] 15) Taylor. J.shtml#a1 [Accessed: 15 JULY 2010] 18) UDHR (1948). Retailers accused of ignoring Bangladeshi workers' plight.un.marketingmagazine. K. Levi's drops from 1st to 5th place in ethical ranking.uk/news/532319/Primark-tops-list-unethicalclothes-shops-poll-shames-high-street-brands/ [Accessed:02 August 2010] UNIVERSITY OF BEDFORDSHIRE | 43 . Article 24: United Nations Universal Declaration of Human Rights [online]. Primark tops list of unethical clothes shops in poll that shames high-street brands.uk/lifeandstyle/2008/dec/05/bangladeshi-workersplight-clothing-retailers [Accessed:04 August 2010] 16) Thomas.BUSINESS ETHICS TOWARDS HUMAN RIGHTS http://www.org/node/416? SESS89c5db41a82abcd7da7c9ac60e04ca5f=mrdvpcufw [Accessed:06 August 2010] 17) UDHR (1948). (2005). Available at: http://www. Article 23: United Nations Universal Declaration of Human Rights [online].

Available at: http://en.[online].org-10 [Accessed: 15 JULY 2010] UNIVERSITY OF BEDFORDSHIRE | 44 .wikipedia.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 21) Wikipedia (2010).org/wiki/Labor_rights#cite_note-hrw. Labour Rights.

Sign up to vote on this title
UsefulNot useful