The Ethical And Environmental Issues Involved

On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.

Possibly damaging the company’s goodwill in terms of not playing their part in CSR by increasing the carbon foot print by using China’s cheap energy source.

Andrew pays the Chinese workers 50% less than he did with the British workers and only 5% of the employees are in a trade union meaning that there is a less likely chance of a strike occurring. There is also a 40% number of staff that is temporary in the business which means that Andrew can choose to hire and lay off staff during peak periods and when they are not needed. They also have close links to recently graduated university students. The ROCE in China is 3.44% which is a lot better than that of the -9.24% in the UK. The asset turnover in the UK was 1.17 and in China it was 2 which mean that they are selling more of their products in China than they were in the UK. The gearing ratio in China is 50.17% which is average for the business and means that they are not in risk of when the interest rate rise they will lose a lot of revenue. The employees that had been working at Burkinshaw had worked there a long time before hand and had possessed unique skills that would allow them to be in a niche market of handmade pottery products that had been hand made to a high quality standard. In the UK the defective products was only 5.0% which was lower than China by 2.5%. The EU and USA markets had showed more percentage of sales growth in Burkinshaw’s Plc markets than China did in 2005-2010 which would have been a safe bet to go with rather than going to China.

Apple, the giant electronic device company in the US, also makes a massive profit from the cheap labor in China. As same as Walmart, the workers for Apple Company have to work overtime because the hourly wage can’t support their families, and they have to work in the environment full of dust and metal. Foxcom is a company of Apple in China, which manages the processing of Apple products. In the plant producing IPhone 5c, a 15 years-old boy is killed because of the unclean condition, and he was too tired. The average working hour is more than 60 a week, so many workers have to sleep overnight at the workplace, and some even work both day shift and night shift to feed their families. Although the workers of Apple Company are suffering, the profit of this company is still increasing. Last year, the avenue of Apple was 42.1 billion dollars, and net profit was 4.8 billion dollars. The cost to make an IPhone is about 200 dollars, but it is sold by 700 to 900 dollars each. Workers in China get 1.5 dollars an hour, so they get 268 dollars a month, and that is three times less than the price of a phone. Apple gains the huge profit, but they haven’t given any benefit to these workers. China is just one of many countries suffer in selfish of the giant companies. Côte d’Ivoire is a country in Africa, and it is famous with production of cocoa, and it’s also where the

I visited China about a year ago, however everything I saw was discussed by Magdoff and Foster in what Every Environmentalist Needs to Know about Capitalism. The intense pollution is enough to make the citizens stay inside for the day, as we here in Colorado might for a snow day. The sights witnessed there is sound evidence that support Magdoff and Fosters argument that capitalism is the primary driving force behind environmental degradation. An explorative journalistic piece by NBC’s 60 minutes Lesley Stahl, revealed that there are currently multi-billion dollar cities being built in China that are completely vacant. China’s massive economic growth can be attributed to policies set forth by the Chinese government some years ago. The Chinese wanted to, ‘catch up with the world, “20 years in a day.” Their ability to actually live up to this goal shows that their government highly values economic growth and will do anything to support it, even at the cost of the environment. This example of the Chinese government is reflective of how most of the world values economic growth, though extreme. Because, no country wants to be in a recession, it is bad for the people causing deep strife in the balance between the environment and economic growth. This paper will utilize the writings of Magdoff and Foster to contend that the way we think about economic growth is harmful to our environment. Additionally this paper will argue that violence is the often necessary for an ideal

Labor. This word is such a small word, however it has a huge meaning. Labor is taken advantage in every country, whether it is a professional occupation, like doctors or manual labor, like chopping wood. China is well known for its low cost labor and this is also the reason most of our clothing and furniture come from China, but this comes with a cost. Most government organizations have more power than the individual in controlling the labor laws, wages, work-related injury compensation, and overtime. .

These conditions provide some power and control for these multinational corporations over their workers. The Chinese workers are powerless against the influence of the corporate executives. They are able to “ultimately set the pace of production as well as the wages of the workers” (“Working Conditions”). Sine corporations may deny any connection to these labor abuses in China. However, with these powers, these corporations cannot shy away from the fact that they did have some degree of responsibility for the conditions of Chinese workers.

Is the lifestyle of people in Europe and the USA a major cause of China’s environmental problems?

China is one of our biggest labor competitors. The reason many US companies go to China for outsourcing is again, because of their workforce’s willingness to operate at low costs. Michael Zimmerman describes this as a disparity in worker “tolerance”. Where the low wages found in China are “far lower than U.S.

Many see the jobs in china as ordinary, but what most don’t see is how many sweatshop or workplaces that “overwork” their employees. In article by (Oster,2014), he claims that about 600,000 people a year die from toiling too hard, according to the China Youth Daily. State-controlled China Radio International puts the toll at 1,600 a day. Roughly around 36 percent of Chinas’ population lives off of two dollars a day. Most of the “poor” population pretty much gets forced into finding work in rural areas just to survive. Big name companies are also part of the horrifying working conditions in china, such as Apple and Dell. Also Companies such as Disney have sweatshops that are poor working conditions for chinese laborers. Donald Trump the president

Workers rights are being violated at Microsoft KYE factories in China based upon hours, wages, and working conditions.

“Inside the factory, amid clattering machinery and clouds of sawdust, men without earplugs or protective goggles feed wood into screaming electric saws, making cabinets for stereo speakers” (Goodman and Pan 1). In the article Chinese Workers Pay for Wal-Mart’s Low Prices by Peter Goodman and Philip Pan the mistreatment of the migrant workers in China is evident. These kinds of behaviors are taking place all over in China. The abuse of the Chinese work force has reached terrible proportions and created unlawful conditions because of the demanding economy of China, and other countries’ needs of the goods; however, the companies that are centered in China are working to make sure their workers are treated fairly.

Prior to reading the Harvard Business Review on Doing Business in China, I assumed that business was a universal thing around the world. I assumed that business was the same in all countries. I assumed that every country had the same end goals when it came to business. As a result, I assumed that all countries followed a similar template for how business negotiations work. I was under the assumption that business was all about numbers and money; I didn’t expect to see so much energy focused on creating relationships. I originally assumed China was a very strict and numbers based country when it came to business. In my mind, China was this giant country where everything is made and manufactured at a lower price. As a result, I assumed that

Nonetheless, Foxconn can evade human rights because the Chinese government turns a blind eye to the allegations. The United Nation’s Declaration of Human Rights prohibits this working environment, but China failed to sign the agreement (source). Moreover, Foxconn is their largest manufacturer and contributor to their gross domestic product (GDP) with $118 billion in 2013 (source). Thus, the government supports the company with additional workers and zero fines/penalties. However, U.S.-based and other corporations lack initiative to change the Foxconn culture. These companies

Political & Legal environment: The political system of a country is an important part of a companies marco-environment. ‘Who governs the country?’ ‘What does the government follow?’ and ‘What legal regulations follow from these policies?’. The most important factors a company is subject to are policy uncertainty, macro instability, and tax rates. Considering China is a country in transition all of the above factors are subject to change, to a degree substantially larger than it is in stable developed countries. We have recently seen changes happening in China on all of the above factors. One example is the new regulations regarding copying, which turned out in favor of Starbucks. However, what will happen in the (near) future is hard to tell. Whatever happens though, Starbucks will be subject to the consequences, whether positive or negative.