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Workers\' rights. It\'s not something we often think about when we\'re purchasin

ID: 2747410 • Letter: W

Question

Workers' rights. It's not something we often think about when we're purchasing the latest tech gadget However, look at this list of some issues that investigations have uncovered: work shifts lasting up to 60 hours; factory explosion killing numerous workers that resulted from a buildup of combustible dust; repetitive motion injuries that are so bad workers lose the use of their hands. "According to recent press reports, that's what work is like for assembly workers in China who build Apple's iPhones, iPads, and iPods." In other locations where workers are assembling products for other tech companies, factory workers have committed suicide because of the pressure and stress. THINK ABOUT middot Whose responsibility is it to ensure that workplaces are safe, especially when work is outsourced? Discuss. middot "It's a tricky dance between first-world brands and third-world production." What do you think this statement means? middot Should ethical/corporate responsibility issues be part of the international strategy decision-making process? Why or why not? Sources: S. Deffree. "Foxconn Explosion Ignites Conversation on Corporate Responsibility" EDN. June 23. 2011. P. 8: J. Bussey. "Measuring the Human Cost of an iPad Made in China." Wall Street Journal. June 3. 2011. pp. B1+; A. Satariano. "Apple Risks iPad Production Loss of 500.000 After Blast." Bloomberg Business Week, May 26, 2011; and E. Savitz, "Apple: Analysts See Limited Risks From Hon Hai Plant Explosion." Forbes.com, May 23.2011. p. 4.

Explanation / Answer

1. From an ethical standpoint and also from corporate social responsibility perspective, it is the responsible of the parent company or Original Equipment Manufacturer (OEM), Apple, in this case, who outsourced the work to take advantage of low cost production in third-world countries like China. However, the outsourced production company in china or any other country is legally responsible for the fair labor practices and providing for the welfare and safe and humanly working conditions for the labor. There are other examples of such inhuman exploitation of workers by Nike factories in Thailand , Vietnam, and other apparel manufacturing factories in Bangladesh .

2. The statement means that while the world class brands like Apple, Nike make themselves stand apart for their superior quality premium products, the means being employed by them to make those world-class products, indirectly though, by outsourcing the production to third-world economies like China, to take advantage of the ultra-low cost production, at the expense of human rights violation and exploitation of workers, are highly unjustified. It's a tricky dance, because the first-world brands are concerned about superior quality products , while the third-world production is all about achieving economies of scale and productivity to maximise their profits, even at the cost of exploitation of poor workers. At the same time, consumers of those world-class products are not able to see what human rights violation and atrocities go behind making those world-class products at such a massive scale and affordability.

3. Yes, Ethical and corporate responsibility issues should very much be part of international strategy decision making, to ensure that fair labor practices are employed by outsourced production companies. This is not an option, but a necessity to ensure that exploitation of workers does not happen and the society at large benefits from the products and direct or indect decisions and acts of the so-called first world brands. The brands are failing their purpose, when they say "we make lives better" , if they are actually making lives miserable for workers in third-world production economies, by ignoring the ethical and corporate social responsibilities to ensure , at least better working conditions for the workers, who sweat it out to make world-class products that make those brands shine and stand-out.

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