Introduction
Child labor is one of the unacceptable global problems that has plagued human civilization since its dawn and continues to do so even today. Companies such as Nike and Nestle provide valuable lessons on the complexities of ethical management in a globalized world. Upholding values defines the reputation and success of a company; however, balancing profit motives with social responsibility is not merely a theoretical exercise but a practical challenge.
Nike’s Case
Nike has employed child labor in Sialkot by responding to allegations with conflicting statements. The company has utilized Corporate Social Responsibility (CSR) measures by posing as a provider of education in third-world countries and assistance to mothers; however, Nike’s actions mirror that of a post-colonial entity (Boje & Khan, 2009). It feigns and boasts about helping people while exploiting the third-world populace. In the field of Human Capital Management (HRM), these actions reflect a failure to treat all individuals as valued assets; thus, it ignores age and nationality.
Nestle’s Case
Nestle’s involvement in child labor practices is seen in cocoa farming in the Ivory Coast. Many academics and general people express their disdain for Nestle, and one has probably heard its controversial statements regarding water rights. Nestle exerts considerable influence over labor laws in the Ivory Coast by lobbying to keep regulations lax for their benefit (Perkiss et al., 2021). The first peer-reviewed source states that “corporate codes are considered to be important, though not the only instruments for addressing child labor … codes must be specific, strictly implemented and monitored” (Kolk & Tulder, 2002, p. 260). In other words, there is an importance of corporate codes in addressing child labor; however, controlling supply chains directly is better (Kolk & Tulder, 2002).
Nestle’s practices in the Ivory Coast are an example of this notion since corporate codes are not enough to halt the exploitation of children. The second peer-reviewed source illustrates that diversity management correlates with higher levels of inclusion, and it impacts affective commitment and Organizational Citizenship Behavior (OCB) positively (Ashikali & Groeneveld, 2015). HRM can utilize these findings to develop a culture that values every worker as a vital asset, whether native or non-native.
Fast fashion is another area where child labor is manifesting. This phenomenon makes child labor a direct part of consumer purchasing habits; thus, the industry brings child labor directly to people’s closets (James, 2022). Both Nike and Nestle’s actions underline the necessity for HRM to engage in highly responsible and strictly ethical management. The exploitation of child labor reflects poorly on their commitment to global social responsibility; therefore, it places them under public scrutiny.
HRM plays a key role in shaping a company’s culture by ensuring that it follows the ethical standards and the values of employees. Nike’s attempts to act as a third-world educator and helper have only served to increase skepticism regarding its sincerity in addressing child labor issues. Similarly, Nestle’s controversial stance on water rights and their influence over the Ivory Coast’s labor laws demonstrate a disconnect between social responsibility and ethical management. Both companies exemplify the challenges faced by modern HRM in aligning corporate actions with stated values and community expectations.
Conclusion
In conclusion, harmonizing the pursuit of profit with the commitment to social responsibility is a real-world challenge, not just a conceptual idea; however, it defines the reputation and success of a company. Addressing child labor requires more than surface-level commitments or the implementation of codes since it demands genuine action and respect for human rights. The cultivation of a corporate culture that is ethical is a continuous effort; therefore, it requires stringent and decisive actions.
References
Ashikali, T., & Groeneveld, S. (2015). Diversity management for all? An empirical analysis of diversity management outcomes across groups. Personnel Review, 44(5), 757-780. Web.
Boje, D. M., & Khan, F. R. (2009). Story-branding by empire entrepreneurs: Nike, child labor, and Pakistan’s soccer ball company. Journal of Small Business and Entrepreneurship, 22(1), 9-24. Web.
James, M. A. (2022). Child labor in your closet: Efficacy of disclosure legislation and a new way forward to fight child labor in fast fashion supply chains. Journal of Gender, Race & Justice, 25(1), 246-278. Web.
Kolk, A., & Tulder, R. V. (2002). The effectiveness of self-regulation: Corporate codes of conduct and child labor. European Management Journal, 20(3), 260-271. Web.
Perkiss, S., Bernardi, C., Dumay, J., & Haslam, J. (2021). A sticky chocolate problem: Impression management and counter accounts in the shaping of corporate image. Critical Perspectives on Accounting, 81, 1-31. Web.
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