Introduction
There are three main directions in business ethics: “ethics of philanthropy,” “ethics of justice”, “ethics of personal autonomy”. The first of the direct links right with the result to which good leads and encourages business to charitable activities (Rao, 2021). The second declares equality and fairness among the employees of the firm. And the third direction considers the observance of other subjects’ rights – business partners, clients, and competitors – as the primary moral rule.
Regardless of the style of management, a global manager in any country is recommended to adhere to the uniform foundations of business etiquette, which consists of equality of partners regardless of their nationality and beliefs, respect for the customs of any country, and strict adherence to the time of appointment of business meetings.
In a business conversation, speech must be built at a pace that allows the interlocutors of both parties to correctly perceive and think over all the thoughts expressed to answer the questions and requests of partners immediately, not to create the impression of a loss of interest in cooperation. The dishonest behavior of the Coca-Cola company, cases of bribing competitors as compensation during the lawsuits with them cost this company the market share given to Pepsico since the latter had evidence of the inappropriate activities of the Coca-Cola company.
Research Methods
Within this study’s framework, specific scientific methods such as interviews, questionnaires, and the collection of statistical information about industry workers were mainly used. The choice of these methods is due to the purpose of the study.
The team did not have any new theory to test, and their goal was to validate information about poor working conditions among Indian employees. From the point of view of the study’s objectivity, this work cannot be called accurate in describing and analyzing the entire garment industry and precisely the situation in India. The sample included representatives of only one company in one country. Even though the company in question accounts for half of the entire Indian clothing market, the data is still insufficient. There are other organizations and several other countries in which the light industry is a critical sector in the region. These countries include Indonesia, Thailand, Bangladesh, Ethiopia, Turkey, and China.
Key Messages from the Study
Several important conclusions can be drawn from this study. First, large companies that lead the global apparel market are deliberately moving their manufacturing facilities to less developed countries to reduce production costs. Nevertheless, even though the price for the release of their products is already relatively low, they strive to lower the price as much as possible (Top fashion brands’ business practices are undermining progress on ending garment worker exploitation’, 2019).
From the point of view of a market economy, if the seamstresses fulfill these orders for the customers’ amounts, there is no problem. However, the question of significant business ethics arises. In today’s world, large companies must take responsibility for their employees. Although the firms are employed by contractors that are not legally part of Nike, Adidas, or any other major conglomerate, their financial activities should be responsible.
Often, brands themselves do not know where their clothes are made because they work with many subcontractors. If brands shy away from responsibility and do not have information about their supply chain, then there is not the slightest chance that consumers can figure out who made their clothes (Ford, 2019). Despite initiatives such as the Bangladesh Agreement and the 2018 Transition Agreement, the exploitation of garment workers, 80 percent of whom are women, is still thriving (Wettstein et al., 2019). A British study published in September of this year shows that shop floor checks are often fabricated.
It has also been found that factors such as fluctuations in product prices or the volume of orders can increase workers’ risk of exploitation. Although some brands are now publicly voicing their social and environmental policies, it is not fully understood how these views work in practice.
Research Methods of the Second Study
The second study expands the field of research of the first and provides more detailed and diverse information on clothing production in developing regions. The methods used to obtain information are similar to the plans from the first case; however, in this case, the large variability of the means used can be noted. The study touches upon all aspects of production and conducts a causal relationship between certain phenomena.
Key Messages
The tailoring system for global companies is built in such a way that many intermediaries are involved in the process, each of which seeks to minimize costs. Thus, working conditions and social guarantees are not provided in full (‘Information and Communications Technology’, 2020). Garment workers are currently underrepresented by trade unions, which face many obstacles from employers and governments in organizing workers. More than 90 percent of the global garment industry workers are unable to negotiate wages and working conditions, so they cannot claim their fair share of the value that comes from selling their products (Fields and Paul, 2019).
The lack of sectoral wage negotiations in the garment industry makes workers dependent on ineffective minimum wage fixing mechanisms for any wage increases. While minimum wage fixing provides general minimum standards, in most major garment manufacturing countries, such as Cambodia and Bangladesh, wages based on these standards fall far from the subsistence level.
Common Observations
It is worth noting, that in industries where supply chains operate, enterprise-level negotiation will never be sufficient to bring about higher wages and better working conditions (Testaverde et al., 2017). Even if customers are willing to pay more, without collective bargaining on the ground, there is no guarantee that the increase will somehow affect workers’ wages and working conditions. In addition, most suppliers work with several customers at once, and price negotiations with each of them are conducted separately.
Conclusion
The garment industry’s modern system does not take into account the rights and needs of ordinary employees involved in the production process. This is often since large brands do not know the number of intermediaries involved in order fulfillment. The desire to reduce production costs prompt companies to locate their garment factories in India, Bangladesh, and other Southeast Asia countries. At the moment, more and more international and national attention is being drawn to this problem.
Reference List
Fields, G., and Paul, S. (2019) Labor income share in Asia.Tokyo: Springer.
Ford, M. (2019) From migrant to worker: global unions and temporary labor migration in Asia. ILR Press.
Information and Communications Technology (2020). Benchmark findings report. Web.
Rao, S. (2021) International business environment. Mumbai: Himalaya Publishing House.
Testaverde, M. et al. (2017) Migrating to opportunity: overcoming barriers to labor mobility in Southeast Asia. The World Bank.
Top fashion brands’ business practices are undermining progress on ending garment worker exploitation (2019). The University of Sheffield. Web.
Wettstein, F. et al. (2019) ‘International business and human rights: a research agenda’. Journal of World Business, 54(1), pp. 54-65. Web.