Social sustainability regulation and practice.pptx

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2. Social sustainability regulation
and practice
Third-world families at work: Child
labour or child care: A Case Study
2

3. Paradox of compatibility in Social sustainability regulations
and Practices in outsourcing of manufactured material from
developing countries
• The paradox could be outlined by the ethical component
of the involved case study in the format of Theory of
Justice of John Rawls, in the format of hypothetical
situational perception based original position of
institutions and individuals, in the developed countries,
who, determine the principles of justice on which the
social regulations of manufacturing product business
outsourcing could be formulated.
• The problem lies in the fact that such individuals and
institutions are unaware of their actual positions in the
greater scheme of things. The dilemma lies in the fact
that global guidelines of social regulation are often
impossible to be adhered to by the various developing
countries based contractors of international business
organisations since such regulatory standards pertaining
to critical issues such as child labour prevention and
maintenance of conducive conditions at the work place
are either uneconomic or could become unpopular with
both the contractors and the workers.
• In case of Timothy & Thomas and other business
organisations based at the developed countries, the
Global Guidelines for social sustainability and business
ethics had been formulated by one culture for another
culture and the corporate communities had never been in
positions through which the social, economic, political
and cultural complications could be ascertained
effectively.
• Balancing the exigencies of sourcing manufactured
clothing from the developing countries and the necessity
to protect the priceless asset of organisational brand
identity at any cost could be addressed through
evaluation of the core reasoning of such corporate ethics
and social sustainability perspectives which dominate the
business practices in the current age.
• The decisions which have to be formulated on the basis
of such evaluations are quite often agonizing ones as had
been discovered by Jonathan Stein in the case study
regarding having to accept the status quo not to
jeopardize the existing business relationships or the
economic sustainability factors for local communities of
workers which are generated by the outsourcing of
labour intensive clothing manufacturing services by
companies such as the T&T to third world countries such
as Pakistan. The unacceptability of this approach could
become apparent to any globally competitive business
institution.
• In case of Levi Strauss, extensive investment of
resources to ground the employees in corporate ethics
and social sustainability values has occurred through
impartation of active encouragement to the
organisational management tiers to formulate decisions
through an increasingly principled approach. The
outcome has been the development of global souring
guidelines of the company in the form of Business
Partner Terms of Engagement. This bear resemblance to
the T&T guidelines.
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4. Significant considerations regarding adherence to global
standards of practices of labour and product manufacturing
outsourcing
• The sourcing of manufactured clothing has been
influenced by such terms of engagement covering the
standards of ethics, environmental and health
requirements and, especially, the factor of child labour
practices. One particular objective in formulation of such
guidelines is to adhere to the existing regulations
concerning the impending prohibition goods import from
sources which involve utilisation of child labour, in
tandem with those of prison labour.
• This is reflective of the obligations to adhere to the
legislations stipulated by Trade Overseas Private
Investment Corporation (OPIC). This is imperative since
accreditation of OPIC catastrophe insurance and
generalised system of preference is completely
incumbent upon the implementation of labour standards
which are internationally acceptable regarding importing
of goods within the United States of America, including
the rules applicable for child labour practices. The
significant development in this context would be the
passing of the Harking Bill by the U.S. Congress.
• However, the solution of child labour in countries such
as Bangladesh and Pakistan in the readymade garments
industry could not be resolved through prohibition of
imports from such contractors based at the developing
countries and utilizing child labour pertaining to the
socio-economic ground realities. The most effective
resolution of such a problem is setting up the necessary
conditions under which absorption of supply excess
pertaining to domestic labour could be achieved which
could lead to corresponding increment in incumbent
wages.
• Strengthening the existing corporate reputation of any
global business organisation is incumbent upon strategic
approach based long term planning. Special significance
has to be placed on adhering to the International Labour
Organisation Convention 138 on Minimum Age, 1973
and the United Nations Convention on Rights of the
Child, 1989. On the basis of such considerations,
corporate organisations have to put in practice the
sourcing policies which could prevent any adverse
publicity from media revelation regarding such sourcing
practices involving contractors who utilize child labour
since this could lead to severe and enduring damage to
the reputation of the companies under consideration.
• The critical argument, concerning the adherence to the
acceptable business practices by global business
organisations such as the T&T, at the cost of not taking
into consideration the wider humanitarian impact of such
decisions, in the format of prohibiting commercial
exchanges through the mode of manufacturing
outsourcing from developing countries based
contractors, could be the perception that the inadvertent
impact of globalization has culminated in the decline of
the power of governments to shape the social and
economic changes in a unilateral manner. This has made
it necessary for large corporate institutions to practice
positive corporate principles and values to effectively
manage such economic and social realities at various
local community levels in the developing countries for
the reason that such organisations create the jobs now.
4

5. The Hobson’s Choice and probable
reasoning of child labour
• Expatriate organisations generally have to deal with the
Hobson’s choice while having to adhere to the principles
of corporate ethical practices. This primarily involves the
dilemma of whether to ensure competitive leverage in
the current economic scenario or to ensure the minimum
acceptable measures of financial compensation
provisioning to the child workers who could be excluded
from their subsistence employments. This could also
include ensuring of working conditions of the workers
involved in the manufacturing of outsourced products at
the minimal standards of globally accepted levels.
• The probable solutions could be envisaged as options
such as dedicated commitment to standards of fair
employment to denial of responsibility regarding
ensuring of effective and conducive working conditions.
In this context, the prevalent reasoning behind such a
deniability based option has been observed to be the
attempted disassociation of themselves by the
multinational organisations from the culpability of
indirectly contributing to child labour on the basis of
pragmatic outsourcing of their products from developing
country based manufacturers who utilize child labour, at
the best possible prices.
• Another of the reasoning behind the perpetuity of such
practices has been a tacit approval of such practices as
the status quo. Children and women are preferred to do
such menial labour on the basis of their perceived
inability to put up resistance to such exploitative labour
practices and such workers are also subjected to
considerable exigency to take up any job in the formal
sector.
• The probable solution could be outlined from the
initiative of Levi Strauss where the company did not
abruptly prohibit the purchasing of products from two
Bangladeshi contractors which had underage child
workers in adherence to the local legislations. The
company worked with such contractors to provide
financial benefits to the children while temporarily
discharging from their duties to obtain education. The
company had promised these child workers of
employment after they could complete their education
and could attain the threshold age of 14 years. This
marked a significant step towards paying attention to
the existing financial realities and community
development imperatives.
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6. Probable solutions
• For any global garment business organisation such as the
T&T, the discharging of the ethical principles and
corporate social responsibilities without jeopardizing the
livelihood earning possibilities of the workers depending
upon the readymade garments manufacturing at the
developing countries depends upon taking of effective
initiatives of working with the governments on
meaningful guidelines regarding management of
children of different ages employed at factories.
• It would be imperative for any manufactured clothing
outsourcing effort to first take into consideration the
ground realities concerning the socio-economic
conditions of the workers, including women and
children, at the outsourcing destinations, such as
Pakistan or Bangladesh. The first step would be to
discover the minimum permissible age for employment
of child labour and compare the same to the guidelines
of the respective companies. Then, the categorization of
work for such workers, such as weaving or printing,
would have to be identified to recognize if these are
compatible with the internationally acceptable standards.
Any divergence between acceptable standards, law and
local practice has to be considered in this respect.
• The next step would be the effort to adhere to the
corporate social responsibility of improvement of
employment standards of the targeted outsourcing
destinations holistically since this could contribute to the
rising of wages and improvement of productivity which
could relegate the necessity for children or women to
work to support their families to the minimum.
• Development of global guidelines would be the third step through
which current situations could be managed. The beneficial outcomes
could be attempted at partnership sourcing through working with the
contractors, suppliers and subcontractors so that work environment
quality could be improved. This could contribute to the reduction in
management costs and productivity improvement where economic
leverage of accessing cheap labour would not be undermined by the
necessity to employ seasonal and thus, greater number of workers
for particular tasks. This would be corporate social responsibility
discharge effort modernization through local community
development in tandem with local contractors or suppliers at
developing world countries.
• In case of the necessity to employ child labour, the respective
organisations could follow the precedence of Burger King to prevent
any violation of child labour involvement laws and standard
guidelines. After experiencing criticism from the media regarding
mass violation of child labour restrictions at the various restaurants
owned by Burger King, the company had resorted to formulation of
a partnership based training and recruitment program with the non-
profit agency of Child Labour Coalition. The objective was to
determine the exact personnel who could be selected with the
particular skill sets instead of child labourers.
• Finally, it is of imperative nature, prior to termination of any such
manufactured product outsourcing contract to suppliers or
subcontractors, to effectively balance the operational standard
bottom lines with those of the necessities of corporate ethical
principles and value management . Planning of education and
training programmes for such workers of contractors in the
developing world could contribute to the enhancement of long term
productivity and employability of workers.
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7. Source evaluation
Citation Title CRAP Test evaluation
Anisul Huq, F., Stevenson, M., &
Zorzini, M. (2014).
Social sustainability in developing
country suppliers: An exploratory
study in the ready made garments
industry of
Bangladesh. International Journal of
Operations & Production
Management, 34(5), 610-638.
Currency
The research is current enough.
Reliability
4 suppliers of readymade garments at Bangladesh
have been concentrated upon in a multi-case
study based approach. The data collection mode
has been the direct interview sessions involving
exploratory methods with the 14 selected senior
representatives of the selected companies. The
Transaction Cost Economics theory has been
utilised.
Authority
The authors are all research fellows at
Department of Management Science, Lancaster
University Management School, Lancaster
University, Lancaster, UK.
Purpose
The purpose has been to investigate the reason
that developing country based suppliers have
been adopting practices which are socially
sustainable and the associated implementation
process specifics.
Perry, P., Wood, S., & Fernie, J.
(2015).
Corporate social responsibility in
garment sourcing networks: Factory
management perspectives on ethical
trade in Sri Lanka. Journal of Business
Ethics, 130(3), 737-752.
Currency
The literary source is recent
Reliability
The research had utilised an interview
method through which 7 export garment
manufacturing contractors at Sri Lanka had
7

8. Continuation
Yadlapalli, A., Rahman, S., & Rogers,
H. (2019).
A dyadic perspective of socially
responsible mechanisms for retailer
manufacturer relationship in an apparel
industry. International Journal of Physical
Distribution & Logistics Management, 49(3),
242
Currency
Absolutely recent
Reliability
The study framework consisted of
evaluation of qualification of suppliers
and the rationality level of the mechanism
of suppliers regarding 2 particular social
responsibility factors as well as 5 different
sub-factors and 18 other dimensions. Such
dimensions had been prioritised through
the utilisation of hierarchy of analysis
process which utilized a case study
involving a prominent Australian retailer
of garments who has been sourcing from
Pakistan and Bangladesh.
Authority
Two of the authors are fellows and
researchers at School of Business IT and
Logistics, College of Business, RMIT
University, Melbourne, Australia) and one
is a faculty member of business studies
at Technische Hochschule Nurnberg Georg
Simon Ohm, Nurnberg, German.
Purpose
The identification as well as prioritization
of mechanisms of social responsibility in
8

9. Reference List
• Anisul Huq, F., Stevenson, M., & Zorzini, M. (2014). Social sustainability in
developing country suppliers: An exploratory study in the ready made garments
industry of Bangladesh. International Journal of Operations & Production
Management, 34(5), 610-638.
• Perry, P., Wood, S., & Fernie, J. (2015). Corporate social responsibility in
garment sourcing networks: Factory management perspectives on ethical trade in
Sri Lanka. Journal of Business Ethics, 130(3), 737-752.
• Yadlapalli, A., Rahman, S., & Rogers, H. (2019). A dyadic perspective of socially
responsible mechanisms for retailer manufacturer relationship in an apparel
industry. International Journal of Physical Distribution & Logistics
Management, 49(3), 242
• Kumar, A., Moktadir, A., Liman, Z. R., Gunasekaran, A., Hegemann, K., & Khan, S. A.
R. (2019). Evaluating sustainable drivers for social responsibility in the
context of ready-made garments supply chain. Journal of Cleaner Production,
119231.
• Giuliani, E. (2016). Human rights and corporate social responsibility in
developing countries’ industrial clusters. Journal of Business Ethics, 133(1), 3954.
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