The Light Industries Business Conduct

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Introduction

Business ethics refers to collective values or codes of conduct that determine how and ensure that businesses operate in an appropriate and acceptable manner. Globalization has helped many corporations expand their markets across borders. There are several ethical principles of the Global Business Standards Codex (GBSC). These include the fairness principle, responsiveness principle, property principle, citizenship principle and transparency principle among others (Carroll & Buchholtz, 2010, p 323). They help curb issues such as child labor, discrimination, forced labor, discipline, working hours, pollution of environment, bribery, outsourcing difficulties, and poor leadership among others (Carter, 2007, p. 93).

Appropriate measures need to be taken to improve these ethical principles by making them more efficient in the global clothing, textile and footwear industry. Despite their significant role in curbing the aforementioned issues, these ethical principles are not effective in meeting their goals in the global business. This paper discusses the business conduct in clothing, textile and footwear industries. It uses ethical principles of the Global Business Standards Codex.

3 Ethical principles of the Global Business Standards Codex in the clothing, textile and footwear industry

The fairness principle

This principle holds that individuals should be treated in an equitable manner, based on their merits or abilities. It requires that similar situations be handled the same way and in a consistence manner without favoritism (Klosko, 2004, p. 10). The principle also requires multinationals in the clothing, textile and footwear industry to consider the rights of every stakeholder and make judgments impartially. This information about the principle of fairness can be summed into four standards, which include fair dealing, fair process, fair competition and fair treatment.

The global clothing, textile and footwear industry should adhere to the principle of fairness in its operations. This principle contributes immensely to the industry’s achievements, particularly in curbing issues that affect stakeholders’ welfare. For instance, the issue of child labor, particularly in the developing world is not under control (Henne & Moseley, 2005, p. 12). Through the fairness principle, multinationals get restricted to employ children. Although many corporations seek child labor, they make huge profits at the expense children who are paid low wages and overworked.

The fairness principle also focuses on ensuring that clothing, textile and footwear multinationals never discriminate people on the basis of their gender, race, disability, and sexual orientation among others (Klosko, 2004, p. 15). However, the role played by the principle of fairness is not efficient in many countries. In reference to Hoang and Jones (2012), workers get exploited and abused in their workplace. The two authors comment on the need for improving regulation of labor. This will ensure that corporations adhere to the principle of fairness. This will also curb discrimination in all aspects, particularly against disabled women in Vietnam’s Multinational Corporations (MNCs) (Hoang & Jones, 2012, p. 68).

The dignity principle

The dignity principle holds that every person is vital and should be uniquely valued. According to Lowman’s article (2005), this principle requires corporations in the global clothing, textile, and footwear industry to treat all stakeholders including the employees fairly, compassionately, carefully, and truthfully (Lowman, 2005, p. 72). They should ensure that the views, health, privacy, employment security, or choices of all people get respected. The dignity principle requires the clothing, textile and footwear multinationals and other corporations to respect people’s rights and integrity. The multinationals should avoid torture, humiliation, or forced labor.

Most corporations, particularly those in the clothing, textiles and footwear industries do not adhere to the dignity principle. They selfishly disrespect the dignity of people by engaging them in forced labor, unhealthy working environments, abusive language, and degradation among others. In reference to Crinis (2010), despite the garment industry’s efforts to join associations in Malaysia in adhering to the CSR’s parameters, the foreign workers still get exploited (Crinis, 2010, p. 590).

This shows violations of global business conducts. In his article, the author argues that the auditors focus on complying with Malaysia’s labor standards instead of questioning the terms of the contract (Crinis, 2010, p. 593). In such a scenario, only the foreign workers get affected, and not the domestic workers. For instance, the author narrates that the passports of the foreign workers in Malaysia are with-held, given poor accommodation and do not get involved in trade membership union-ship, among other disrespects of dignity.

The citizenship principle

The citizenship principle requires all corporations to be like citizens in societies. They should portray a good image by abiding by law ad collaborating with the authorities, just like the citizens do. The principle also focuses on political non-involvement, public goods and civic contribution among others. Many multinational companies do not adhere to this ethical principle. For instance, they take advantage of the low cost labor and less restrictive standards in foreign countries, instead of supporting the society by improving their ways of life. In reference to Kozlowski, Bardecki, and Searcy (2012), some multinational companies particularly those in the developing world have negative impacts on both the social lives of people and the environment. The social impacts include issues such as child employment, overworking, lack of worker rights and health issues among others. Some of the environmental impacts include wastes of clothes, textiles, and footwear in landfills, production of solid wastes, water and energy wastes among others (Thabrew, Wiek & Ries, 2009, p. 67).

Many multinational companies ignore laws and regulations that control social and environmental impacts. This clearly shows that the ethical principles of the Global Business Standards Codex in the clothing, textile and footwear industry do not work as planned, in the global business. Considering that there are no organizations to supervise the multinational in ensuring that they adhere to the citizenship principle, many countries, particularly the developing nations face negative social and environmental impacts.

Conclusion

Appropriate measures need to be considered to make the ethical principles of the Global Business Standards Codex efficient in the global clothing, textile and footwear industry. Many researches indicate that most multinational companies, particularly those in the developing world do not adhere to these ethical principles. This leaves both the foreigners and the domestic workers exploited by these companies. For instance, they employ small children, overwork people, pay low wages, and pollute the environment among other issues. Unless appropriate measures get integrated to improve and make multinational companies adhere to the global business codes of conduct, the developing world will continue to face the aforementioned issues. In order to curb these issues in the future, there is a high need of taking relevant measures that will ensure that the ethical principles of the GBS Codex are admirable in the global business. For instance, organizations should be developed to monitor and supervise whether the multinationals adhere to the ethical principles of the GBS Codex.

List of References

Carroll, AB & Buchholtz, AK 2010, Business & society: Ethics and stakeholder management, CL-South-Western Cengage Learning, Mason, OH.

Carter, C 2007, Business ethics as practice: Representation, reflexivity and performance, Edward Elgar, Cheltenham, UK.

Crinis, V 2010, ‘Sweat or No Sweat: Foreign Workers in the Garment Industry in Malaysia’, Journal of Contemporary Asia, vol. 40, no. 4, pp. 589-611.

Dragano, N, Siegrist, J & Wahrendorf, M 2011, ‘Welfare regimes, labor policies and unhealthy psychosocial working conditions: a comparative study with 9917 older employees from 12 European countries’, Journal of Epidemiology & Community Health, vol.65, no. 9, pp. 793-799.

Henne, K & Moseley, D 2005, ‘Combating the Worst Forms of Child Labor in Bolivia’, Human Rights, Vol. 32, no.1, pp. 12-15.

Hoang, D & Bryn J 2012, ‘Why do corporate codes of conduct fail? Women workers and clothing supply chains in Vietnam,’ Global Social Policy, vol. 12, no. 1, pp. 67-85.

Klosko, G 2004, The principle of fairness and political obligation, Rowman & Littlefield, Lanham, Md.

Kozlowski, Bardecki & Searcy 2012, ‘Environmental Impacts in the Fashion Industry: A Life-cycle and Stakeholder Framework’, Journal of Corporate Citizenship, volume 1 Issue 45, p 17-36.

Lowman, RL 2005, ‘Respect for People’s Rights and Dignity’, Journal Of Aggression, Maltreatment & Trauma, vol. 11, no. 1/2, pp. 71-77.

Thabrew, L, Wiek, A & Ries, R 2009, ‘Environmental decision making in multi-stakeholder contexts: applicability of life cycle thinking in development planning and implementation’, Journal of Cleaner Production, vol. 17,no. 1, pp. 67-76

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