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

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

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

According to the human rights of the people. • • Understanding the importance of securing human rights for the working class. A business would become successful when it is properly carried by the management. It does so by considering the human rights for the workers in the clothing industry. They are as follows• • Examining the common ethical values of businesses. • Examining whether the clothing industries are performing ethical business or not. 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. Analysing the clothing industries which use labour to reduce the production costs. the report even considers few objectives apart from the primary objective. UNIVERSITY OF BEDFORDSHIRE | 7 . 1. • Identifying the globalized organisations which have production plants throughout the world. 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. This generally happens in employing child labour for the work as they are efficient and are paid low wages.BUSINESS ETHICS TOWARDS HUMAN RIGHTS Business is a trade which involves in providing services to the people in return for money. Usually.4) Objectives of the Report The major objective of this report is to examine “the relevance of upholding the human rights for workers”. It involves maintaining good relation with the employees and customers. For a better understanding. 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. Rules and Regulations of various governments on the imports and exports of clothing.

journals. 1. 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.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. all the major companies of the clothing industry throughout the world are considered. As a part of this. the information that is useful for the project is available and accessible. Chapter-2 Literature Review UNIVERSITY OF BEDFORDSHIRE | 8 . Fourth chapter briefly concludes on the case study on the human rights of workers in the clothing industry.6) Scope of the Project Unlike other projects or reports. Apart from this the limitations are also specified which will help in knowing the backlogs in the report. Third chapter constitutes to be the heart of the report as it contains analysed data on the human rights.BUSINESS ETHICS TOWARDS HUMAN RIGHTS • Differentiating the working conditions in developed and underdeveloped countries 1. The data collected from various sources needs to be analysed which opens a new gateway to study information. 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. Starting with the lately established companies to the recently established companies. working standards of the workers in the clothing industry. and websites as a part of literature review in the second chapter.

activities. human rights and its standards. decision or situations. 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. human resource management. Corporate financial managers are responsible for the myriad decisions from how best to invest the capital in the further growth of the business. business ethics is explained with the practices of ethics in various business fields. sales and marketing. Much of the information has been taken from the books and is structured in a proper way. The awareness among financial UNIVERSITY OF BEDFORDSHIRE | 9 .” 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. and decision where issues of right and wrong are addressed. According to Andrew Crane (2007) “Business ethics is the study of business situations. a brief specification about the human rights for workers is provided. no person should be affected from the decisions on the problem.e. There after human rights are discussed with the recent debates on the amendment of human rights. As the report is aimed to analyse the importance of human rights for workers in the clothing industry. 2.BUSINESS ETHICS TOWARDS HUMAN RIGHTS This chapter examines the theories about business ethics.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. To understand the problems which persist with the activities of the businesses. 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. journals published by different authors through years. technology. property rights. 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. Firstly. A business has many wings like the finance management. website. production. we need to know the activities of the businesses initially.

2. Now a day. selling financial instruments.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 . handling finances will be a difficult task and to be ethical is important for the success of the money. are• Financing in the ethical programs like supporting the child education. In this way. • The company should be loyal to the customers in terms of returns. money has become important for the human kind and to gain money. or omission of the truth for the purpose of deception or manipulation to the detriment of a person or organisation (Downes and Goodman. people are turning to become cruel. • Intentional misrepresentation. If a company is multinational then people expect it to be ethical by at least lending finances to support for causes. 1985) After understanding the general ethical issues. Some of the key points to explain how ethical a company is. concealment. Withholding full disclosure Internal trading if the business is in a financial sector involving mutual funds. beating the cancer. 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. The general ethical issues which occur in finance said by Ronald F.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. Duska (2002) are• Misrepresenting the financial products. 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. including deceptive illustrations of possible returns • • Concealing of risk factors. we can understand how important finance is to be ethical. spreading awareness on the usage of eco friendly products.

At present in the corporate world. Also because of this.BUSINESS ETHICS TOWARDS HUMAN RIGHTS ethical demands of the customers (Winstanley and Woodall. Unethical practises in the HRM will show their affect in two ways.As the organisation’s main source of productivity.3) Ethics in Sales and Marketing | 11 UNIVERSITY OF BEDFORDSHIRE . • Deregulation and rhetoric. flexible working contracts are the primary indicators of the problems (Winstanley. the performance of the employed candidates affects the development and services of the products thereby degrading the performance of the organisation. shift systems. 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. This method is said be to backdoor entry. on the customers. Blindly. One of such processes includes the recommendations of candidates. This is absolutely unethical in perspective of Human Resource Management. 2. Few of the HR managers even give away jobs to naive employees in return for money. 1996:6) • The surveillance and control of employees (Winstanley. the importance of morality in HRM is recognised and attention is being paid over the necessary changes in the organisation. deceit in HRM will correspond to the doubtful ethical standards. On the other hand ethical practices will strengthen the agenda of the company and also increase the reputation of the HR managers (Legge. 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. The newly introduced pay roll. Recently. 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. HRM will weaken if it does not practise ethically thereby depriving the credibility of the organisation. this kind of practise is often seen. 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.on the organisation. 2001). 1998). employing him by the HRM would affect the company. 1996:6).

They are only specified to attract customers and grab the market share. The health hazardous information should be specified while marketing the product which will help the consumers in knowing the risks involved with it. Representing the product would be unethical. • Truthfulness in advertising the products.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 best example would be that the labelling is user friendly which can be easily disposable. • The ethical practices of product labelling. This would help the company to achieve sales and profits but will ruin its reputation in the long run. type of the product. • The issues relating to the unethical tactics used for gaining competitive advantage. 1993). • The ethical declaration on the fair use of the product. De George(1993) refers to friedman statement as “Myth of A moral Business”. the risks involved with it. 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 employees should be given respect and be treated with dignity. The discounts which are offered on a product should be known carefully as much of the discounts are not applicable on many products. 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. UNIVERSITY OF BEDFORDSHIRE | 12 . The terms and conditions should be outright on the designation of the employee. cost. • Forthrightness in selling the products. The point of friedman is inaccurate and managers often see a positive relation between enlightened self interest and long term profitability (Smith and Quelch. But. 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. The first impression on the product can be obtained by its label which explains the quality. 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.

For example.BUSINESS ETHICS TOWARDS HUMAN RIGHTS An organisation can present itself in front of public with its services with the process of marketing.4) Ethics in Production Ethical issues in production are a very common thing which happens in a company. the organisation which is unethical is losing its position in the market. Here what I have presented are the general unethical issues practised by the organisations but the importance of practising ethically are not been known. This would affect the living of the animals and other than cosmetics. Due to the strict law in the developed countries. insecticides etc. It’s better to be in the market for a long time by satisfying the customers. businesses are restricted to use limited resources or given permission to establish such businesses outside the cities. 2. gases released into the air from the factories will affect the atmosphere. This is so because of the resources which are required for the production of a product are environmental. pesticides are tested on plants and animals which needs to have a license. the production of cosmetics requires chemicals from the animal pigments. medicines. Awareness programs are been in place to stop the unethical activities of the industries but are not so effective in the developing nations. technological. This would help in the future growth (expansion) of the organisation with a lot of appreciation and reputation. It may have a direct/indirect affect on the nature. 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. Any unethical or illegal activity would definitely fetch money in return but what is the use of obtaining such money? In this process. This generally happens with the chemicals factories producing pesticides. if convicted then the entire organisation will be seized. one of the other ethical issues in the production phase is that during the production of products. It is completely unethical and is against law to harm animals. 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 . Apart from these issues. 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. Also unethical practises are against the law and order.

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

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

• 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. For example: China is famous for duplicating any kind of product like the mobile phones. While utilizing the human rights. • Exercise: a right is exercised when the obligations of a duty-bearer are activated who may either respect the right or violate it.6) Human Rights According to Jack Donnelly (2003). 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. This indirectly points out to stealing the ideas. electronic industry. Producing such products is unethical in a business field even though they fetch you a lot of money. But. music industry in which copyright issues are a common concern. enjoyment.BUSINESS ETHICS TOWARDS HUMAN RIGHTS • Manufacturing or producing a product without taking the permission from the original designer or creator. respect. But when this is discovered then the business has to face the law which would ruin its reputation. a person should also respect the law UNIVERSITY OF BEDFORDSHIRE | 16 . 2. • Copyright violation is another unethical practice which generally reserves the right to not duplicate the original product. gadgets which are of cheap quality and resemble in the same way of the original product. enforcement. human rights are “the rights of men” meaning the rights obtained by being born as a human. designs of a person and not crediting him for it. There are four primary dimensions for the practice of human rights-exercise. there are few industries like the clothing industry. music players.

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

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

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

In this process. 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 .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 businesses expanded too many countries to capture the international markets. The retailer indulged into these practices were in supply chain management is used to carry on the proceedings. 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.BUSINESS ETHICS TOWARDS HUMAN RIGHTS industry. On a whole. 3. Through the supply chain. the general rules have been liberalised according to the agreement on tariffs and trade. Wal Mart (world’s No.1.1.1) General Study on the Clothing Sector Clothing sector is a labour based sector which allows unskilled people for the entry level jobs. The primary means for clothing industry is the textile industry. It has been established centuries ago and since then it has been introducing variety of clothes for the mankind. Recently in 2005. Every country has got the resources for the manufacture of clothes and the clothes with good quality generally get exported to other countries. This change had affected many industries in quite a large way.1 shopping mall) has used this technique in expanding its services.2) Structure of the Clothing Industry UNIVERSITY OF BEDFORDSHIRE | 21 . and the shifting was flexible enough. the Agreement on Textile and Clothing regulates the businesses in the textile and clothing industries.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. 3. Rules and regulations have been introduced on the functioning of clothing industries in the late eighteenth century. the need for workers tremendously increased. 3. Because of such a change. Also. This mainly included rules on the imports and exports of the manufactured goods. There is no need for any qualification in order to work in this sector. This process ultimately reduced the production costs. Both of them need to go hand in hand to manufacture a finished product. 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.

Fashion is playing an important role in the present markets. 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. 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 industry has been divided into two major categories consisting of businesses (Navaretti et al. The competitive advantage in this market is the ability to put up innovative designs for the fashion lovers. creative aspects. outsourcing. Unethical practices are dominating the ethical practices is being brought into media often. UNIVERSITY OF BEDFORDSHIRE | 22 . (Hildegunn Kyvik Nordås. The quality of these products is relatively low when compared with the other segment of the market. fashion in the recent years. On the other side of the industry. 1999). “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. China. The structure of the industry used to be precise but with all the changes in terms of technology. Turkey. This type of market is generally found in the developing countries like India. 2004). With the emergence of retailers. These markets exist in developed countries like America. This market constitutes females workers as the major part and almost all the finished goods are outsourced to various countries including the developed countries. and France in which people encourage fashionable clothes with high quality. the industry is also being modifying itself with modern technology which helps in producing high quality clothes. a market with mass production of clothes like tshirts.BUSINESS ETHICS TOWARDS HUMAN RIGHTS The sector is well known for its innovative. With the change in science and technology. it has become complex yet precise to understand. uniforms exits. 2001).. undergarments. 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. England. a trend that probably has continued during the second half of the 1990's”. labour. According to Gereffi (2001). Mexico having semi-skilled employees. Apart from the change in the structure.

2) Business Ethics in the Clothing Industry For any business to be started. But in the informal side.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 3. Recently. It has not been much successful though but we can expect a good result within few years. and labour legislation. Much of the working style of businesses in the formal sector has been adopting human rights at work. Italy is claimed to be the world best in the production of clothes. external trade partners. 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. At present the governments in the developing countries are encouraging the people to promote ethical values and human rights at work. the working and living conditions of the workers would change. 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.3) Employment in the Clothing Industry America and Europe are the two major continents where clothing industry has its major activities. 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 . This code of conduct is a set of rules which restricts the business in implementing unethical practices. the clothing industry has revised the code of conduct and has standardised it. It is also spreading awareness on the economic importance of providing decent working conditions. 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. These codes directly or indirectly refer to the standards of the International Labour Organisation regarding the human rights at work. Hopefully with the implementation of proper codes. According to the commission of the European communities or the union (2003). 3. there is no change in the working style as it indulges people with illiteracy and unskilled. 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. helping their workers in their daily needs. code of conduct is to be followed in running it successfully.

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

Apart from these two organisations. UNIVERSITY OF BEDFORDSHIRE | 25 . few other smaller organisations are also analysed. Primark and Levis Strauss are been taken as an example and are evaluated. 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.

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

no security. It is necessarily important for Primark to look into its suppliers while giving the contracts which it hasn’t managed properly. The code of conduct of the supplier should be checked before assigning the contracts. 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. These children worked for the suppliers of the Primark. but the Primark has no information on child labour. This was completely denied by Mary.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. SAVE is the organisation is intended to eliminate child labour and working in hand to hand with NGO since 1994.2008) Generally in India there is lot of corruption. 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. this is helping the bigger organisations to tackle allegations over their illegal practices. It was Dan MacDougal (The Panorama) which revealed the situation persisting in Tirupur. It started in 2008 when an investigative journalist of panorama. In such raids they have found out that on an average 250-300 children are working per year within the factories.(Ethical consumer.Dan MacDougal visited Bhavansigar refugee camp (70miles north of Tirupur. a psychologist in Indian NGO. ultimately Primark will be bearing the blame over the child labour. She had questioned TEA on how there is no child labour in tirupur. south India) and found out that Tamil children aged below 9 yrs are working for Primark garments in dark rooms with no proper wages. 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. 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. Primark might have also done the same to acquire the support of the organisations to come out of the scandal. UNIVERSITY OF BEDFORDSHIRE | 27 . It ultimately specified that ”There is no child labour in tirupur”. When we look at the above scandal we can observe that Primark is not involved as the entire scandal rotates on its suppliers.SAVE (social awareness and voluntary education). However.

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

Through the years the organisation had acquired many small. the company had to face difficulties as it has been accused of indulging in unethical practises. In its early stages it had just concentrated on the traditional clothing with the addition to the normal denim jeans. The organisation has become wanted for its wide range of denim jeans. Until the 1980’s. big firms such as Great Western Garment Co. The era was named as “blue jeans craze” for the organisation.BUSINESS ETHICS TOWARDS HUMAN RIGHTS employees working under them will not be homeless. 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. no security. it would put more energy into ensuring these job were carried out in decent conditions and for wages that provided a dignified standard living. It was in late 1920’s that the company actually started introducing modern ware along with the continuation of its denim jeans. The company has been the No. In 1991. It had its varied way of manufacturing clothes which no other company came up with. It UNIVERSITY OF BEDFORDSHIRE | 29 . 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. There are no proper wages. Sam Maher states that “if Primark is the ethical company it claims to be.” TEA has already put in a clause that company like Primark have to share. 4. and no safety provided by Primark so how will they have the right to make their employees homeless.1 in America decades ago but now it lost its position in the markets. Levis Strauss had no competition from other clothing organisations.2) Levis Strauss & Co: Levis Strauss & Co is a famous and well reputed organisation established in 1853 in California. 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. In this process. 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. 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. From which it had adapted to the use of “Stone Washing Technique” for its production. 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.

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. The movements on the human rights for workers by the private organisations were in full flow during this period. These practises were brought under the jurisdiction and the organisation was ordered to pay a huge sum of penalty. Until now. 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.2. As a multinational organisation. Since the establishment of the organisation. The activists had targeted Levis Strauss for its involvement in violating labor policies and protested with hunger strike. the report depicts the analysis on the causes of its unethical practises and the opportunities created by Levis for its workers. Levis Strauss claimed it had no knowledge on the procedures adapted by its subcontractors and is entirely not involved in the unethical practises. Now. 4. 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. From this stage the fall of the company has been observed leading to continuous losses for the consecutive years. it was operated by the family members of Levis and it continued for more than five decades. sit-ins in front of the head quarters in San Francisco. UNIVERSITY OF BEDFORDSHIRE | 30 . corporate social responsibility rules. In 1996. the report discussed about the unethical practises of Levis in its 1990’s and the after affects it faced because of them.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. $9 million was given as restitution to the employees.BUSINESS ETHICS TOWARDS HUMAN RIGHTS was even accused for paying fewer wages to the workers with 12-hour shifts every day in a week. This was a surprise to all its customers as none of such scandals had taken place till then. Tan Holding Corporation a Levis Strauss subcontractor was named after paying the largest fines in the US history. Immediately.

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. Levis Strauss has removed its operations from its factories in Burma in 1992 as it was accused of violating human rights. It was the first organisation to publish a statement that the organisation operates in an ethical way without affecting its employees and its customers. 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. Then after it was the first organisation to implement the code of conduct on its international business operations. In 1975. Ultimately. To be ethical and loyal to its customers. even though the organisation has tried hard to be ethical and moral. 2000 published in Harvard Human Rights Journal) UNIVERSITY OF BEDFORDSHIRE | 31 . When all the other multinational companies were expanding their services to all the major countries in the world in 1993. It even protected against the issue of contracts to such factories as it would be unethical as these factories have no social responsibility. the arising issues in the factories of the organisation are a perfect example of the complexity in the modern manufacturing sector. (Source: Compiled from Levi’s Children: Coming to Terms with Human Rights in the Global Marketplace by Karl Schoenberger. But in reality the company had no intension to indulge in activities which would ruin its further growth. 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.BUSINESS ETHICS TOWARDS HUMAN RIGHTS it had planned to implement ethical practices involving human rights for its workers. 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. 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. it had framed a set of ethical guidelines in which it gave special importance to ethical values. 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.

Levis Strauss is a multinational company with its operations in all the major countries. It was because of the suspension of Levis Strauss from ETI. the garment workers are paid with lesser wages and to eradicate this. But again in 2007. The workers working in the factories in India are not given opportunity to work in the factories in China as it involves huge costs. The outsourcing to developing countries like India. After all the allegations. a minimum wage UNIVERSITY OF BEDFORDSHIRE | 32 . China indulged in the activity of issuing contracts to the factories whereby it’s the responsibility of the factories to employee the labour. 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. the organisation in 2002 had taken a decision to collaborate with Wal-Mart (No. Industry analysts argue that the living wage provision will eliminate the discrimination against the garment workers explaining that amongst the workers. So the practise of employing the workers belonging to the same country is often encouraged by Levis Strauss. For the first time in the entire century.1 retail store) for the exclusive sale of its Signature Jeans until 2006. 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. for which it has been suspended. 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.2.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 4. The organisation was not in to news involving in to bad practises through the years until 2007. the ethical ranking of Levis Strauss has dropped from first to fifth place. 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. It had even sold away its subsidiary companies to clear its financial problems. After the scandal in 1991. As it has been established in America. it has been accused of violating the code of the ethical trading Initiative. 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 has come out of this organisation after refusing to implement “Living wage provision” of the ETI’s base code.2) Further Analysis on the Organisation Strategies and the Employment of Workers Inside and Outside of the Home Country As we know.

Levis Strauss. and John Lewis are being accused of exploiting the workers in Asia. M&S and other companies.BUSINESS ETHICS TOWARDS HUMAN RIGHTS provision will be implemented. (Source: Rebecca Smithers (2009). 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. Sainsbury’s stood in the next position with a 2/5 grade and still remains to be below average. gap. Primark and M&S were also awarded 3/5. 4. Asda. there are several other clothing industries in the world which are involving in the same kind of practices. Primark.5/5 which was appreciable when compared to others. The result was the organisation had a very disappointing approach towards the human rights for workers. new look and monsoon who were given 3. 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. 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. 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. In the same way. Beating all these companies are next. Levis Strauss is better in this perspective. Gap. This is absolutely ethical and the protests against it will be strongly opposed. High street retailers accused of exploiting workers in Asia ) | 33 UNIVERSITY OF BEDFORDSHIRE . high street retailers including Tesco. In a recent study conducted in 2009 by Labour Behind the Label. Unlike.3) A Study on the Other Companies in Clothing Industry Apart from just Levis Strauss and Primark. Asda. In 2007. 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.

this is creating an opportunity to the developing countries in Asia to employ more labour for carrying the work.4) Employment for Workers Until the recent recession in 2007.85 billion workers are living on less than $2 per day which is below the poverty line.6% recording the highest in the world.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. developing nations. According to Juan somavia. In central and eastern Europe.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.5% in 2004 and increased to 9. In reality. When analysing all the factors which lead to this situation.7% but the worst affected are the middle-east and North Africa were unemployment was 13.Out of all these.2%. With the IT industry booming throughout all the countries. the employment of professional people with good academics is given more importance than the workers. In 2004 the unemployment rate was 7. This is mainly observed in the developed countries like Latin America. Asia remained to be the lowest in the unemployment rate with just 3.7% in 2005.8% and that of britain’s was 5%. The number of unemployed people had rose to a record high of 191. In sub. While this is UNIVERSITY OF BEDFORDSHIRE | 34 . Caribbean where the unemployment rose by 1.3% which was steady since the two years but in 2005 it rose to 7.BUSINESS ETHICS TOWARDS HUMAN RIGHTS 4. the workers are paid less wages when compared to people with professional qualifications.8 million in spite of the growth in the economies rising by 4. 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 a report published in 2005 by the International Labour Organisation. it was observed that the improvement in the economy of countries is not improving the employment opportunities.3 million which is more than half of the entire global rise. the director of International labour organisation. Around half in the 2. On a whole the entire unemployment rate in the developed countries was 6. Because. 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.Africa the unemployment rate remained 9.3%. the unemployment rate was 9. the world had seen a sharp increase in the economies of the developed.

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

UNIVERSITY OF BEDFORDSHIRE | 36 . This shows the media is having more corporate social responsibility than the clothing industries. 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. On the positive side. 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. China. 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. 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. This is because of the increase in competition. 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. All the scandals are brought forward by the media. Tesco are doing the same which is degrading the quality of the clothes by wasting a lot of resources for their manufacturing. and Philippines have increased in the garments industry which is ultimately improving the economies of the developing countries rather than the developed countries. Due to the process of outsourcing. the multinational companies are not paying proper wages to their employees.BUSINESS ETHICS TOWARDS HUMAN RIGHTS business is being overseen by the businessmen and the same is continuing in the clothing industry. The emergence of media has helped in controlling the system to some expect as it had brought awareness on the misuse of clothes. the employees in the outsourcing countries are being unethically treated which is not being noticed in the developed countries. its competitors like Asda. The hard work of the workers is lost in reality as these cheap clothes are used and thrown in the developing countries. greed for money. If one organisation is performing the unethical activity then their competitors are doing the same to gain profits. While the smaller companies are degrading the quality of clothing. the employment opportunities in the developing nations like India.

UNIVERSITY OF BEDFORDSHIRE | 37 .BUSINESS ETHICS TOWARDS HUMAN RIGHTS Chapter.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.

• To abolish the child labour. 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.BUSINESS ETHICS TOWARDS HUMAN RIGHTS After analysing the industry by taking into consideration of all the multinational companies. 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. Awareness programs should be in place where the workers will be taught about the importance of education for their child’s future. 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. • 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. • As the multinational companies are spending costs on outsourcing their work to the unknown factories in developing countries. Clauses should be mentioned in the agreement between the multinational organisation and the factories involving the regulation of the employment for workers. With a shift system in place. This would improve the situation of the workers as the management will be aware of the working conditions in its own factories. Organisation’s license should be cancelled if the organisation is proved to be unethical. 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. I would suggest them to acquire a factory and run the factory according to their rules and regulations. Because of this the UNIVERSITY OF BEDFORDSHIRE | 38 . 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.

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

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

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

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

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

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

Sign up to vote on this title
UsefulNot useful