The world is becoming more and more interconnected and firms are facing evolving challenges. With the increased globalization, companies are competing not only within their national borders but also against multinational companies. This heightens the pressure stressed on all the businesses to reduce their costs and increase their competitiveness. Large multinational companies (MNCs) turn their attention towards the developing countries to deliver their production in a more cost effective way. MNCs have established wholly owned subsidiaries in China, Indonesia and other parts of South-East Asia and outsourced certain elements of the supply chain to countries like India and to Pakistan. Coupled with globalization is the growing number of issues occurring with MNCs utilizing the child labor market in the developing countries. Most international organizations, such as the Fair Labor Association (FLA) and the Ethical Trading Initiative (ETI) (Levi Strauss, 2007) are mostly concerned about long working hours, minimal wages and child labor.
[...] There will be costs involved, however, the benefits for the particular factory will far outweigh. This program, if handled properly, will be an opportunity for the particular factory to develop a competitive advantage not only over “sweatshops” in the immediate area but also over factories in other countries like China or Indonesia. To be accepted into the program the parents will need to consent. After this the children will be introduced to the factory manufacturing process and be given the simpler of garments to produce. [...]
[...] Secondly, this paper will provide an overview of the international background information and industry trends. Thirdly, it will analyse the Pakistani culture to attain a culturally sensitive solution. Fourthly, this report will propose practical solutions in how to resolve and avoid such child labour problems in Pakistan and give further remarks The cool casual company (ccc) Cool Casual Clothing was established in Australia to provide high quality women's, men's and children's garments at a reasonable price. We have expanded our operations and now we are present in 10 different countries. [...]
[...] These children not only need to be given shelter and nutrition but they need education. CCC should adhere to the principals set out by the Global Alliance and follow the improvements undertaken by industry veterans, like Nike and GAP, and support their young labour force in their efforts to minimise their costs. We should aim to transform the concept of the inaptly named “sweatshop” from a simple factory, producing cheap goods that are to be exported with a huge price mark-up, into an organization that can give back to the children that facilitate the cost savings for the MNC. [...]
[...] To achieve a suitable outcome for solving the arisen issues, we need to communicate and supervise in a culturally sensitive way. Therefore, we will analyse below the Pakistani culture according to Hofstede's dimension and based on further researchers work. According to Hofstede, Pakistan has a relatively high collectivist culture including high uncertainty avoidance, high power distance and masculinity (Islam, 2004). In contrast, we can see Australia with very high individualism, low power distance, considerably low uncertainty avoidance and masculinity (Francesco and Gold, 1998). [...]
[...] We focus on achieving quality in everything we do. CCC will market and offer attractive and widely worn apparel that characterises quality, style and function CCC and corporate social responsibility Our company, CCC, implemented Corporate Social Responsibility (CSR) to motivate our employees, to increase productivity, to keep our costumers and business partners satisfied and to meet labour requirements, legislation more easily. CSR is a concept where organisations consider the interests of employees, customers, shareholders, communities and the environment in all aspects of their operations. [...]
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