1. Many companies establish and post a code of conduct. See P. 409 – Reebok. Wit

Question

1. Many companies establish and post a code of conduct. See P. 409 – Reebok. With promises such as fair wages and benefits, no discrimination, freedom of association, the right to collectively bargain, etc., do you think there is still a need for union representation in such a facility? Why or why not? Provide details and examples. Cite sources if necessary.

2. What have you learned about globalization to explain to a policy maker why globalization has profound implications for domestic employment issues? Based on these implications, should enforceable labor standards (a social clause) be added to free trade agreements? If so, what should the standards be and how should they be enforced?

Explanation / Answer

1. Code of conduct for an organization is a set of rules which outlines, for an organization and its stakeholders in general and employees in particular, the  rules and responsibilities. A code of conduct for employees will inform the employee about the company's expectations from them.

Code of conduct are merely meant to serve as guides. Even though it has policies of fair wages and benefits, no discrimination etc, it cannot replace union representation. Union representation will ensure protection of employees in relation to employment matters. It will also enable employees to negotiate with the employers regarding the pay and work conditions. Thus, code of conduct cannot replace union representation.

For example, in Coca Cola there is a code of business conduct which serves as a guide for its employees. The aim is to develop employees's actions that are consistent with the company's values. The Coca Cola's code includes policies related to need for integrity, how to avoid conflicts of interest, and how to maintain integrity while dealing with others like government, customers and suppliers. However, employees at Cocal Cola (at the manufacturing facilities) have union representation.

Sources: http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2012/11/COBC_English.pdf

https://teamster.org/magazine/2015/winter/organizing-coca-cola

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