Multinational companies now require suppliers in developing countries to follow local laws and regulations regarding labor practices, environmental standards, and ethical conduct before they will form business relationships. This includes standards like not employing underage workers, compensating employees according to labor laws, and avoiding corruption. While notions of ethics vary globally, large companies are putting pressure on suppliers to conduct business legally and ethically or risk losing contracts. The goal is to improve workplace conditions, but it may also reduce the pool of potential low-cost suppliers or create unforeseen problems with this ethical procurement approach.

1. Many multinational companies now demand that their cable local laws, rules and regulations,"
28 as well as adhere before they will order from them. While the notion of to follow to coy
contractual obligations suppliers need what is ethical varies around the globe, as do the laws,
obligations include, but are multinational companies in North America and other developed
nations are putting pressure on global suppliers to do business legally and ethically or forgo the
not employing any persons under the age of sixteen business relationship. According to
Walmart's "Standards for Suppliers," the chain has "fundamental expectations from its suppliers
labour practices regarding their activities in relation to the workers proabiding by the law ducing
merchandise for sale by Walmart and the impact compensating employees in accordance with
labour of their manufacturing practices on the environment." 17 laws Standards include, but are
not limited to: not discriminating against employees abiding by the law not employing workers
through forced or involuntary labour practices Discussion Questions - hiring and compensating
employees in accordance 1. When multinational companies put pressure on with labour laws
developing countries' governments and - not giving gifts or entertainment to Walmart associates
businesses to improve workplace conditions and - not using bribery or corruption in dealings
with public ethical practices are they making a difference? officials or individuals in the private
sector Why or why not? - adhering to local environmental laws for air emissions, 2. By creating
rules that suppliers must follow are water discharges, toxic substances and hazardous companies
possibly chasing away potential lowwaste disposal cost suppliers? 3. What problems might you
foresee with this type of In the "Ethical Standards" section of The Home , ethical procurement?
How