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Economics

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Apr 3, 2024

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Cheers – Where Everybody Knows Your Name 1. What is it about human beings to make us want to go to a bar where everybody knows our name? Humans crave validation, acceptance, and feeling like we’re around people who understand and share our problems. 2. What is so special about such a place? There is only one place like this in the world. 3. What is so repugnant about such a place? The reasons for why people are there. 4. How does this discussion about a bar named Cheers relate to the concept of social capital (See Trust, Justice, and Ethics slides)? Social capital relates to networks and communities, and that is exactly what this bar is- a place where everyone knows and accepts each other Patagonia Corporate Social Responsibility – History 5. What is the origin of the term sweatshop ? “The term sweatshop was first used in the 19th century to describe sewing factories where the conditions were hot, crowded and airless—and the workers were paid a pittance for 16-hour days.” 6. What is the main theme of paragraphs two and three in the section on The Apparel Industry? The main theme of paragraphs 2 and 3 regards the exploitation and challenging working conditions faced by mainly women in the apparel industry. 7. What is the working condition of Patagonia’s 2,000 employees in the U.S.? “ Our own employees—the nearly 2,000 people who work directly for us in our oﬃces, stores and distribution centers—are paid fairly and enjoy good benefits, including generous health care, subsidized child care (in Ventura and Reno), ﬂexible work schedules and paid time off for environmental internships. Many employees share our values, care about quality and are active in environmental and community causes.” 8. What is Patagonia’s turnover rate? “low”. 9. How many people apply to work at Patagonia each month? A: Approx. 9,000 applicants. 10. Who design, test, and market Patagonia gear? Patagonia itself. 11. Where does Patagonia design, test, and market its gear? “Like most clothing companies, we do not make our own products, nor do we own any of the factories that do. We design, test, market and sell Patagonia gear. These are our areas of strength.”

12. Who manufactures Patagonia gear? “ We pay other companies that have the technical expertise and equipment to produce the fabrics and do the actual cutting and sewing. This arrangement poses special challenges for us because we feel responsible for any work.” 13. Where does Patagonia manufacture its gear? In other companies 14. What is Patagonia’s “4-fold” vetting approach? “one that considers social and environmental practices equally with quality standards and business requirements, like financial stability, adequate capacity and fair pricing.” 15. When does Patagonia apply its “4-fold” vetting approach? “When considering new factories, or evaluating current ones” 16. Why does Patagonia grant its Social and Environmental Responsibility (SER) team the power to veto a decision to work with a new factory? “this practice is rare in the apparel business and keeps us out of factories that don’t share our social and environmental values. “ 17. Why does Patagonia grant its Quality team the power to veto a decision to work with a new factory? “to minimize any negative impact on the factory workers and the environment that could result from our business decisions.” 18. Why is it rare in the apparel industry for SER and Quality teams to have the power to veto a decision to work with a new factory? “Our Social and Environmental Responsibility (SER) team can veto a decision to work with a new factory (as can, as always, our Quality team). This practice is rare in the apparel business and keeps us out of factories that don’t share our social and environmental values.” 19. Why does Patagonia train its Sourcing and Supply Planning teams in responsible purchasing practices? “to minimize any negative impact on the factory workers and the environment that could result from our business decisions.” 20. Why does Patagonia believe that “you can’t make good products in a bad factory? ”We try to work with factories that share our values of quality and integrity. Our belief is that “you can’t make good products in a bad factory.” We work with clean, well-run factories that have skilled, experienced workers and a low turnover rate.” 21. Why does Patagonia refuse to work with a factory it cannot visit? “As we grow, we recognize the need to test these assumptions and begin to formalize our contractor review process. In 1990 we ask our contract managers and Quality team to begin reviewing the factories they visit, in terms of product quality and working conditions. We make the decision not to work with any factory we can’t visit.” 22. Since 1999, how has the Fair Labor Association (FLA) helped improve the lives of millions of workers? “After a public outcry, Kathie Lee Gifford joined the anti-sweatshop movement. Both Gifford and Patagonia were invited to take part in President Clinton’s “No Sweat Initiative.” As a result of what

we learned, we created a more formal process for our company and became founding members of the Fair Labor Association (FLA), an independent multi-stakeholder verification and training organization that audits our factories.” 23. Why does Patagonia deem it unacceptable that labor brokers charge migrant works from Asian countries up to $7,000 to get a job in Taiwanese fabric mills that supply Patagonia? “We deem this an unacceptable practice that can lead workers into debt bondage and forced labor. We make a commitment to work with our suppliers to eliminate this practice in our supply chain. We set out to hire experienced staff to oversee this work.” 24. What is debt bondage? When victims of forced labor are “tricked into working for little or no money to repay a debt.” (gla.gov) 25. What is forced labor? “Forced labor occurs when individuals are compelled against their will to provide work or service through the use of force, fraud, or coercion.” (dhs.gov) . 26. In 2013, why does Patagonia include a living wage component in its supply chain responsible practices? “Early in the year, we publish our revised Code of Conduct, which is reviewed and approved by the FLA. This document outlines responsible practices for our supply chain, including a living-wage component” 27. In 2013, why does Patagonia include policies to consider the living wage rate in its costing formulas? “ Additionally, we implement policies to consider the living-wage rate in our costing formulas. These efforts are part of short-, medium- and long-term strategies to address living wages in our supply chain, beginning with our apparel assembly factories.” 28. How did Fair Trade USA get its start? “Our partnership with Fair Trade USA is one of our first steps on the journey toward living wages. We don’t own any apparel assembly factories that make our products, so we have limited control over how much workers receive. Through Fair Trade, we can supplement workers’ wages and provide them with tangible benefits that improve their lives. We pay a premium for every Patagonia item that carries the Fair Trade Certified™ sewn label. That extra money goes directly to the workers at the factory, and they decide how to spend it. In each factory, a democratically elected Fair Trade worker committee decides how the funds will be used. We begin working with Fair Trade USA to certify our first factory this year.” 29. Identify five different products from five different brands -- include brand name and item name and the link to each product in your response -- from the produce category that are certified by Fair Trade USA. Dole products, Wholesome products, naturesweet products, wonderful citrus products, and windset farms products https://www.fairtradecertified.org/our-community/shop-fair-trade/ 30. Identify five different products from five different brands -- include brand name and item name and the link to each product in your response -- from the clothing category that are certified by Fair Trade USA. Rei apparel, J.crew apparel, madewell apparel, target apparel, patagonia apparel https://www.fairtradecertified.org/our-community/shop-fair-trade/

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