Executive Summary Solidarity Fund, the decision maker in this case must resolve an issue with its relationship with Gildan Activewear, and decide whether to continue that relationship or to dissolve it. Solidarity Fund routinely conducts social audits with many of the companies it maintains relationships with. Gildan Activewear has been subjected to these social audits, and has failed to pass portions of it. Gildan Activewear has denied several of these accusations and has faced public criticism, and yet, has instead continually stated that it has maintained high standards. Introduction The Solidarity Fund and Gildan Activewear, Inc. case study discusses a possible problematic relationship between the two companies, and where Solidarity Fund has to come to a decision whether to preserve their relationship with Gildan Activewear, or to dissolve the relationship they have with the company. Gildan Activewear has faced public criticism for their falling labor standards and practices in their manufacturing plants in Honduras. An issue that was brought to the attention of the public by Canadian Broadcasting Corporation (CNC), which illustrated a situation where Gildan Activewear employees in Central America “earned less than living wage, worked long shifts, had excessively high production quotas, and breathed air filled with fabric dust.” Furthermore, Gildan Activewear faced further controversy when it became disclosed that they had fired serval employees for trying to form
Sweatshops have been around for centuries, beginning around the late 1880’s. Sweatshops are classified by three main components, long work hours, very low pay and unsafe and unhealthy working environments. Sweatshops are usually found in manufacturing industries and the most highlighted production is clothing corporations, who take full advantage of the low production costs of their products. Many may think sweatshops are a thing of the past but they are still affecting many lives across the nations. There are many ways sweatshops affect lives, but a recent article titled “New study finds ‘more sweatshops than Starbucks’ in Chicago” explains that there are many low wage industry jobs that are violating labor laws in the United States alone. The article also reports how employees who are working in such conditions won’t speak up in fear of the retaliation employers will implement. Analyzing Sweatshops through the lens of the Sociological perspectives will help us better understand the illegal conditions of workplaces that still exist today.
In the article “Harnessing Our Power as Consumers: Cost of Boycotting Sweatshop Goods Offset by the Benefits,” Ed Finn asserts that contrary to popular belief, consumers can significantly affect the abusive labor policies of global corporations by their purchase decisions. According to Finn, our continued affinity and patronage of cheap foreign products, disregarding the exploitative labor that churns these products, only serves to further impoverish the Canadian populace in the long term. As an average consumer himself, Finn alludes to the fact purchasing locally manufactured products would involve some additional costs. Finn exemplifies this by the effort expended in seeking a locally manufactured cap and paying “four or five times more than
“Women sewing NBA jerseys make 24 cents per garment – an item that will eventually sell for $140 or more”(Brandon Gaille). Our most popular American sports uniforms are mainly produced by Nike, who possess a market cap of $ 90 billion. The question, therefore, becomes, why do immigrant workers from developing countries migrate to the United States to work for brand-name companies, when they don’t receive equitable wages and perform in inhumane working conditions? In,”Who Makes the Clothes We Wear”, Jesse Jackson discusses these conditions and unjust treatment of immigrants. Jackson highlights the extreme manual labor hours, inequitable pay, and rash mistreatment of immigrant workers inside name brand sweatshops. He also provides nationwide examples of unjust labor environments in order to think about the disturbing ethics behind name brand clothing production. When examining why workers endure such horrific environments, it is clear that most originate from developing countries. Due to immigrants attempt to obtain a better quality of life, receive any type of wage that they can acquire in the United States, and their constant struggle with the language barrier which affects job opportunities and daily interactions; immigrant workers endure the mistreatment of name brand companies because they seek the American Dream.
This report has been created with the intent to analyze the athletic apparel industry with a specific focus on Lululemon Athletica, Inc., further refered to as Lululemon. In this report you will find that the strengths and weaknesses of Lululemon’s current strategies and future goals are analyzed and compared to that of its closest competitors. In conclusion to the analysis, recommendations have been made to potentially guide Lululemon Athletica, Inc. in a positive direction in regards to its future endeavors. The following
In this article he tries to prove his point of view of the sweatshop by proving and stating how the women suffer being there just so in the end we can have a brand accessory like Nike or Gap. Also he talks to his audience because he mentions that we can write letters to companies when workers’ rights are violated and to show support of their efforts to organize, “we can put pressure on our government to adopt policies and regulations that make companies accountable when they fail to address flagrant and persistent violations of workers’ rights.” As of today there are some major brands that have the ‘company code of conduct compliance staff’ in order to answer complaints and investigates the situation and report back and tell what they were going to do to fix the problem. But with all those advances made there’s still any changes in the workplace because he states that a “a little less child labor, fewer forced pregnancy tests or health and safety violations in the larger factories used by major brands” but they still give them poverty wages, long hours of forced overtime and massive firings of workers that tried
You will use the critical thinking skills you have been developing to identify violations of the Universal Intellectual Standards and Logical Fallacies in the essay, “Sweatshirts from Sweatshops” on pages 406-408 of your textbook.
One of the biggest and most popular brands in America, Nike, who targets athletes of all ages to be better athletes engages in unethical behavior by exploiting people from other countries by providing bad working conditions and low wages. Nike produces athletic equipment as well as apparel that is not only appealing to athletes, but also to the general public. However, the people that work for Nike and make these products are people being physically abused by supervisors and have to deal with horrible working conditions. According to an article written by Zaid Jilani, he said that thousands of women in Indonesia are being exploited by companies such as Nike where the wages being paid to these women are not enough to survive. Nike is well aware of what they are doing to these people in Indonesia, but still continue with it because the profits they receive at the end of the day is more valuable to them than the poor working conditions they offer to these Indonesian women. This shows that Nike uses the the Utilitarian approach because the company weighs out the pros and cons of the situation and still decides to produce products in Indonesia where it’s perfectly legal to pay low wages and have bad working conditions even though it is
The Solidarity Fund attempted to influence Gildan Active wear by undertaking a new social audit of the company in 1999 disclosing what they were unpleased with and giving recommendations on what to do about them. For example, Bourcier, one of the Fund’s developing officers, first issue of concern was dilapidate facilities and sub-standard working conditions in plants that supplied Gildan. He suggested that they cease all deal with those contacts. Other concerns brought to Gildan were the high levels of cotton dust and production systems under which workers were paid based on the productivity of their team of
Karen Coates really exploits the relationship between corporations and garment manufactures in her article. It really opens people’s eyes, it shows people who may not know, they could be wearing clothes that was made with the hands of a struggling worker. In her essay she shows us the values of the four social actors. One of them being the workers. The workers are the most abused. They have little to no say in what they do, they are controlled and tormented every single day for a little days pay. The workers struggle to stay up long hours, they work in hard conditions and when they finally get to go home they are not living in the best of situations. Most workers pay can’t support a large family who has kids and medical expenses. The workers
This paper commences by defining the problems that were faced by Lululemon Athletica Inc in 2013. After, the author explores the causes of the issues that the company was experiencing and the effects that they had on Lululemon Athletica Inc. The next step is to look at ways in which the issues could have been addressed both for the short-term and long-term. When all is said and done, the audience will fully appreciate why “Lululemon Athletica Inc should revert to its fundamentals – that is, to concentrate on the needs of the consumer”.
Everyday, millions of consumers in the United States contribute to the harsh treatment, under paid, and sexual abuse of factory workers all over the world. The garment industry, one of the largest in the world, generates over 3 trillion dollars a year yet the average monthly wage is 21 dollars a month, 80% of whom are women, and including children ages 5 to 14. While most apparel used to be manufactured in the United States, in the past decade a majority of manufacturers have moved operations overseas due to loose regulations according to the huffington post (Badal). The current trend of fast fashion comes at a much greater cost than we are all aware of, The True Cost, a documentary by Andrew Morgan highlights fashions “unadvertised sins” such as unregulated production, toxic garment dyes harmful to both workers and the environment, and attempts by the factory workers to form unions that end in violence (Wilson).
American Apparel (AA) is a well-known United States clothing brand that has gained recognition among the retail industry. American Apparel headquarters is located in Los Angles, California where it manufactures and distributes its clothing products. It is known in today’s society, to be sweatshop free and has a strong belief of workers’ rights. However, American Apparel has had a downfall in the retail industry losing revenue. This research of American Appeal will provide feasible reasons why the company should enter China international market to improve on sales revenue.
Apparel and shoe manufacturers continued to offload the more costly yet easily replicated part so their business models to concentrate on brand building, marketing, sales and attaining greater distribution channels globally. These are the pressures all apparel and shoe manufacturers face, and it is particularly challenging in the athletic show industry (Kynge, 2009). Adidas, Converse, Nike and Reebok have been outsourcing production of their shoes for in some cases nearly three decades. Nike was one of the leaders in this strategy, seeing to create a more efficient supply chain and also drop the labor and union costs of manufacturing in the U.S. (Boje, Khan, 2009). Adidas, Converse and Reebok have all followed Nike's lead, with Adidas benefitting from the fall-out generated when investigate reports showed Nike using child labor throughout Pakistan and Vietnam (Boje, Khan, 2009). All four of these companies share a common prioritization of manufacturing operations, yet none of them with the exception of Nike has a comprehensive Corporate Social Responsibility (CSR) program in place to ensure ethical compliance to global standards of outsourcing in their industry (Nike Investor Relations, 2012). The intent of this analysis is to compare and contrast the four companies mentioned and their outsourcing practices. Their reasons for choosing to outsource are very much the same; the industry is shrinking
American business should not be permitted to claim it is an ethical firm if it ignores unethical practices by its international suppliers. For the purpose of this assignment I will use the Nike Company to highlight its unethical practices. Despite the popularity of Nike in the American market, it has been accused of exploiting employees abroad. The corporate social responsibility stipulates that a company should maximize its profit and minimizes its cost in operations and manufacturing, also at the same time benefit the community it operates in. This paper will further elaborate on the global strategy employed by Nike Company as it outsources its goods and the unethical issues its
The Pou Chen factory is located in a place where the minimum wage is far below the national average. It has 10,000 workers who make Converse sneakers. Most of the workers are women, and they earn only 50 cents an hour. The amount that they earn is not even enough to cover their food and very poor housing. In this factory, the women are both physically and verbally abused. Nike’s own investigations have proved these complaints to be true. The company made a statement saying that immediate actions would be taken to deal with the situation. It is interesting to note that, “an internal Nike report, released to the Associated Press after it inquired about the abuse, showed that nearly two-thirds of 168 factories making Converse products worldwide failed to meet Nike’s own standards for contract manufacturers. Twelve are in the most serious category, ranging from illegally long work hours to