Unethical Practices Assignment Help
Detecting unethical practices at supplier factories, to include monitoring and compliance, is a major challenge to say the least. Yet, wages drive costs and it's an absolute necessity to maintain the lowest cost in production of any good. Or is it?
Discuss how important is it for companies, such as Nike and Wal-Mart that source extensively from foreign suppliers located in countries where wages are low and substandard working conditions are common to institute supplier codes of conduct and undertake programs to monitor and ensure supplier compliance with these codes of conduct?
Would you recommend that a company join the Fair Labor Association and use FLA's standards and program of factory audits instead of trying to set up its own supplier monitoring and compliance effort?
What can a company do to detect and combat the efforts of unscrupulous foreign suppliers to deceive inspection/compliance teams?
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To understand how the ethically minded students would be able to consider the position that can closely monitor and be able to sail through and support the companies such as the Wal-Mart and Nike which would attain a supplier code of conduct along with implementing the enforcing the code. It would be important to apply the compliance framework and also continuously monitor it on the basis of the merit that would be applied on the basis of the companies which can outsource a high percentage and also support the products attained from the foreign manufacturers (Fradella, 2013):
With the support of the company's reputation and to undergo a negative media coverage and facing the rigid human rights activists. The companies has to ensure how they are able to secure the finished or the end goods and do a timely auditing on the manufacturers or the producers that are paying a substandard wages or providing an unusually long work hours an incidences which provides evidence that they are following malpractices such as using the child labor along with providing unsafe workplaces, and even involving in the substandard practices. All this have negative publicity that can consequently be having long-term consequences lead to the damage to the company's reputation and customers shunning away from it.
It is fairly recommended for such companies to join the Fair Labor Association and use FLA's standards and program that would be frequently be conducting a factory audits, as such companies have a vast suppliers network and personally monitoring the supplier activities can lead to cascading effects for the company to follow (Schaltegger, 2017).
The company should hire an external and internal auditor who would frequently be conducting reviews and be able to monitor the unsuspicious activities.
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