Pepsi Cola In the Indian Market
For example: Recently, Pepsi Cola was In the news for allegations of having pesticides In their drink products In India. Pepsi ensured that it was not Just meeting standards In the Indian Market, but has the same standards of water purification across the world. Pepsi was found In a scalar situation such as Nikkei, they should have realized that even though they were getting cheap labor In other countries that they needed to be socially responsible to ensure that the workers get minimum wages and work In conditions that are acceptable on a global scale.
What labor standards regarding safety, working conditions, overtime, and the like should Nikkei hold foreign factories to: those prevailing in that country, or those revealing in the united States? Nikkei needs to adopt a policy for its overseas operations which will allow them to enjoy the cost advantages that they are realizing by off shoring manufacturing of shoes, yet which will give them the integrity of being a humanitarian company.
For example, if Nikkei adopts the normal standards in the country of manufacturing then it is not able to comply with some of the human rights related issues that global organizations should comply with.
Thus, it is very important that Nikkei adopts a series of standards that ensures that workers get at least the minimum wages in the respective country but the working conditions should be acceptable enough for workers to work and the minimum age limit of workers should also be enforced strictly. An income of $2. 28 a day, the base pay of Nikkei Factory workers in Indonesia, is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less than $1 a day.
Given this, is it correct to criticize Nikkei for the low pay rates of its subcontractors in Indonesia?
Each country has their own which is regulated by the labor laws In each country. Dally rates are different according to the skill of workers, type of city the worker lives and works In and the prices of essential commodities In the city and state. For example, the dally wage of workers in factories manufacturing Nikkei shoes may be higher than farmers In the same city and or state. If Nine’s contractors are not abiding by the Mullen wage regulations for the type of skill and working conditions In which these workers work In, then Nikkei should be reprimanded and fined on the global scale.
Yet, should Nine’s contractors obey the minimum wage regulations set by the government according to a workers skills and working conditions, then Nikkei cannot be condemned or criticized and comparing wages of one set of workers with another set of workers would be irrelevant.
Could Nikkei nave Enola ten negative putridly over sweatshops netter:’ want malign it have done differently, not Just from a public relations perspective, but also from a policy perspective?
From a policy perspective, Nikkei could have handled the negative publicity over sweatshops much better. Nikkei could have enforced policies for all the contractors who are manufacturing either shoes or apparels for Nikkei across entries to obey the local rules and also could have created some better policies that would apply to all the factories that manufacture Nine’s products. In a good faith effort, Nikkei should have published the names of all the contractors across countries that obeyed the local working regulations, conditions and wages.
Nikkei could have demanded that the local labor inspectors in different countries do an audit of their factories on a regular basis to ensure that contractors comply with the local laws in their respective countries so that the people working there would be safe and fairly treated. Do you think Nikkei needs to make any changes to its current policy? If so what? Should Nikkei make changes even if they hinder the ability of the company to compete? Nikkei should adopt policies which work across the globe where their factories and workers are concerned.
They need to ensure that all their contractors obey both the wage regulations and local working conditions in all countries.
Nikkei can ensure this either by designating a labor inspector in each of their regions whom will report the details of all the workers working in their factories to a local, regional, national, and international board. This report would be submitted to legal experts at the country level and worldwide level to ensure that all the laws are in compliance by contractors of Nikkei.
Is the WAR right to argue that the FLAT is a tool of industry? Nikkei factories were found to be incompetent with the WAR as they found some policies which were not being followed in Nine’s factories. WAR give ample time to FLAT to see that all Nikkei factories are compliant with the local labor laws in their countries. WAR should routinely audit some of Nine’s factories which FLAT has deemed as compliant with local labor laws to ensure that it is not a tool of the industry.
If sweatshops are a global problem, what might be a global solution to this problem?
Bottom line is that companies should be held responsible for adhering to local, national, and international laws concerning the working conditions of people across the globe. Next summarize the strategic and operational challenges facing global managers illustrated in your selected case. Also comment on recent global developments affecting the company in this case. Strategic Challengesldentifying low cost countries for cost effectiveness while still adhering to regulations governing working conditions and wages. Ensuring Tanat consumers can get ten same equal AT product Tort anywhere across Letting the world know what the company is doing to ensure that its contractors and subcontractors are compliant with Nine’s policies. Operational Guilelessness’s the same training and development of employees across regions, nations and the globe.
Ensuring that each manufacturing plant has similar working conditions across the globe. Ensuring that every worker receives fair wages across the globe. Refreshingly, Charles W. L. (2005).
International Business: Competing in the global marketplace. New York, NY: McGraw-Hill/Larkin.