Employment and Company

1004 WordsAug 25, 20135 Pages
Russell Athetic case 1.Assume that you are an executive of a large U.S. multinational corporation planning to open new manufacturing plants in China and India to save on labor costs. What factors should you consider when making your decision? Is labor outsourcing to developing countries a legitimate business strategy that can be handled without risk of running into a sweatshop scandal? Once company decide to expand new factory in new place, there are couple factors that manager should concern. Government regulations would be first priority. It is necessary to know each country labour laws because some countries restrictions are tough. Those countries might require high standard of worker welfare and working conditions. It is obviously…show more content…
Isn’t this a responsibility of the government of each particular country to regulate the labor practice within the borders of its country? Who do you think provides a better mechanism of regulating and improving the labor practices: NGOs or country governments? It would be nice to have NGOs to monitoring MNCs action in other countries. In my opinion, it would be hard for government to intervene the organization unlike public organization. As I mention earlier from previous question show that most of government in developing countries did not concern with labor issue as first priority. The main reason is labor issue did not help politician gain more vote nor their own benefit like corruption. In many developing countries, politician desire to search for project that could generate a lot of money via corruption. One of the examples is building infrastructure. It needs to borrow capital. Once they receive those funds then it could be easily to sneak away some fund out. On the other hand, in labor issue it did not generate any profit for politician. Therefore, many of Politian would focus on sweatshops issue in last priority. In my opinion, I believe NGOs would have done better job than country’s own government. 5.Would you agree that Russell Athletic made the right decision by conceding to USAS and union demenads? Isn’t a less expensive way to handle this sort of situation
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