Detecting unethical practices at supplier factories to include monitoring and compliance is a major challenge to say the least. Yet wages drive cost and its an absolute necessity to maintain the lowest cost in production of any good. Or is it???
This week focus on debate! Start or select a fellow student’s side and either support or argue against that position.
But be constructive in your approach.
Discuss how important is it for companies such as Nike and Wal-Mart that source extensively from foreign suppliers located in countries where wages are low and substandard working conditions are common to institute supplier codes of conduct and undertake programs to monitor and ensure supplier compliance with these codes of conduct? Would you recommend that a company join the Fair Labor Association and use FLAs standards and program of factory audits instead of trying to set up its own supplier monitoring and compliance effort? What can a company do to detect and combat the efforts of unscrupulous foreign suppliers to deceive inspection/compliance teams?