Minding The Gap [PDF]

Zitiervorschau

Running Head: ETHICAL PROBLEM

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Ethical Problem Name Institutional Affiliation

EHTICAL PROBLEM

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1. Do you think that multinational firms like GAP should be responsible for the practices of their offshore suppliers? Multinational companies such as GAP has a lot of responsibility in monitoring the effects of their interests and activities in the countries in which they operate. While it is responsibility, it is not a requirement by law that multinational companies have to respect labor standards. [CITATION Car14 \p 22 \l 1033 ] According to the World Bank, these companies have a corporate responsibility of being committed to working towards positive contribution to the economic development by working with the communities to improve the quality of life in a way that is good business and adheres to development plans[ CITATION The19 \l 1033 ]. Since different countries have different and independent means of administering their laws, multinational companies have taken advantages of the situation in countries with loopholes that they can milk from. Multinational companies work with the governments and local authorities, and in many cases, the citizens and laborers in those countries are not considered. As such, no one is ensuring that; the private sector promotes human rights rather violating them, environmental and social criteria are incorporated in procurement decisions, corruption is avoided, and there is transparency in business practices and, core labor standards are adhered to[CITATION Cle13 \p 2 \l 1033 ]. To address the above issues, the international community has stepped up to bring awareness about the infringement of rights and poor working standards. The European Union has also put pressure on member countries to sign legally binding agreements that will ensure that such companies do not take extreme advantage of the situation in developing countries. Labor unions, large companies, and governments are also pressuring multinational companies to adhere

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to certain standards because of the rampant cases exploitation of labor in supply chains, abuse of human right and environmental pollution[CITATION Uni14 \p 1 \l 1033 ]. The aim of the international community and other related bodies is to increase the sense of responsibility of the multinational companies towards their offshore properties and offshore suppliers regarding the wellbeing of the communities and laborers in the developing nations. At the moment, the international community is already feeling that these companies are already having it too easy by bearing little or no responsibility. While this is true to some extent, the main reason such companies invested in developing countries such as Bangladesh is to exploit cheap labor, resources, and less strict government policies. While their business practices may be considered unethical, it is because of such practices that more companies are applying methods similar to that of GAP[CITATION Riv14 \p 33 \l 1033 ]. 2. Should GAP sign the legally-binding Accord? By signing the legally binding accord, many multinational companies will have to bear the responsibility of the safety of employees and communities in their offshore properties as well as their offshore properties. This means that multinational companies have to bear the cost of implementing safety standards and improving the living and working conditions of their labor market. The legally-binding accord presented to GAP is independent and aimed at improving the safety of all garment factories in Bangladesh. The agreement was designed by labor unions in Bangladesh as well as the international community and has already been signed by more than 50 international brands and retailers agreeing to invest in making factories safer[CITATION Cle13 \p 3 \l 1033 ].

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This particular accord is a unique one in terms of its legal status. In comparison to other accords which are voluntary and have no legal implications, the Accord of Fire and Building Safety in Bangladesh allows for legal enforcement by suing signatory multinational companies who violate the accord. It is because of this aspect that many companies in Europe and the United States of America refuse to sign the legally binding Accord. The companies are afraid of lawsuits; meaning that they are not ready or willing to implement changes that might cost them a lot of money and time[CITATION Cle13 \p 6 \l 1033 ]. 3. Should Multinational firms continue to do business in countries like Bangladesh, where labor conditions are poor, and corruption is a problem? Multinational companies like GAP should not stop outsourcing in Bangladesh. This is because while there are problems in Bangladesh, the solution is not to escape but to work to improve the situation[ CITATION GAP19 \l 1033 ]. Companies outsourcing in developing countries with conditions similar to Bangladesh have done so because of the opportunities they have spotted in those countries. While most of the responsibility falls in the government and the authorities in the affected countries, GAP and other companies can do away with many of the issues by simply adhering to ethical business practices and avoid promoting corruption. According to Bangladeshi sources, while many locals are suffering because of poor working conditions and dangerous practices, they are in such a situation because some of the authorities in Bangladesh benefit in some way from the exploitation of their citizens; citizens who have no option to go the working sites in order to meet their daily needs[ CITATION Uni14 \l 1033 ].

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References Carroll, A. B., 2014. Business and Society: Ethics, Sustainability, and Stake Holder Management. 9 ed. Boston: Cengage Learning. Clean Clothes Campaign, 2013. Frequently Asked Questions (FAQ) about the Bangladesh Safety Accord. [Online] Available at: https://cleanclothes.org/issues/faq-safety/#5---should-companies-stop-sourcingfrom-bangladesh [Accessed 30 May 2019]. GAP, 2019. Our commitment to Bangladesh. [Online] Available at: https://www.gapinc.com/content/gapinc/html/html [Accessed 30 May 2019]. Rivoli, P., 2014. The Travels of A t-Shirt in the Global Economy. 2 ed. New Jersey: John Wiley and Sons. The World Bank, 2019. Corporate Responsibility. [Online] Available at: www.worldbank.org/en/about/what-we-do/crinfo [Accessed 30 May 2019]. United States Congress, 2014. Labor Issues in Bangladesh. 1 ed. Washington D.C: U.S Government Printing Office.