Many multinational companies now demand that their suppliers enforce legal and ethical business practices before they...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Many multinational companies now demand that their suppliers enforce legal and ethical business practices before they will order from them. While the notion of what is ethical varies around the globe, as do the laws, multinational companies in North America and other developed nations are putting pressure on global sup- pliers to do business legally and ethically or forgo the business relationship. According to Walmart's "Standards for Suppliers," the chain has "fundamental expectations from its suppliers regarding their activities in relation to the workers pro- ducing merchandise for sale by Walmart and the impact of their manufacturing practices on the environment."27 Standards include, but are not limited to: abiding by the law not employing workers through forced or involuntary labour practices hiring and compensating employees in accordance with labour laws not giving gifts or entertainment to Walmart associates not using bribery or corruption in dealings with public officials or individuals in the private sector adhering to local environmental laws for air emissions, water discharges, toxic substances and hazardous waste disposal in the "Ethical Standards" section of The Home Depot's Supplier Reference Manual, it states that the company "expects that all suppliers will abide by all appli- cable local laws, rules and regulations, as well as adhere to company's ethical standards. The Supplier Reference Guide outlines key contractual obligations suppliers need to follow to conduct business with The Home Depot. The obligations include, but are not limited to: providing transparent operations, policies, processes, and relevant records not employing any persons under the age of sixteen not employing workers through forced or involuntary labour practices abiding by the law compensating employees in accordance with labour laws not discriminating against employees providing safe workplaces providing workplaces free from corruption and fraud Discussion Questions 1. When multinational companies put pressure on developing countries' governments and businesses to improve workplace conditions and ethical practices are they making a difference? Why or why not? 2. By creating rules that suppliers must follow are companies possibly chasing away potential low- cost suppliers? 3. What problems might you foresee with this type of ethical procurement? How can companies ensure their suppliers are ethical? Many multinational companies now demand that their suppliers enforce legal and ethical business practices before they will order from them. While the notion of what is ethical varies around the globe, as do the laws, multinational companies in North America and other developed nations are putting pressure on global sup- pliers to do business legally and ethically or forgo the business relationship. According to Walmart's "Standards for Suppliers," the chain has "fundamental expectations from its suppliers regarding their activities in relation to the workers pro- ducing merchandise for sale by Walmart and the impact of their manufacturing practices on the environment."27 Standards include, but are not limited to: abiding by the law not employing workers through forced or involuntary labour practices hiring and compensating employees in accordance with labour laws not giving gifts or entertainment to Walmart associates not using bribery or corruption in dealings with public officials or individuals in the private sector adhering to local environmental laws for air emissions, water discharges, toxic substances and hazardous waste disposal in the "Ethical Standards" section of The Home Depot's Supplier Reference Manual, it states that the company "expects that all suppliers will abide by all appli- cable local laws, rules and regulations, as well as adhere to company's ethical standards. The Supplier Reference Guide outlines key contractual obligations suppliers need to follow to conduct business with The Home Depot. The obligations include, but are not limited to: providing transparent operations, policies, processes, and relevant records not employing any persons under the age of sixteen not employing workers through forced or involuntary labour practices abiding by the law compensating employees in accordance with labour laws not discriminating against employees providing safe workplaces providing workplaces free from corruption and fraud Discussion Questions 1. When multinational companies put pressure on developing countries' governments and businesses to improve workplace conditions and ethical practices are they making a difference? Why or why not? 2. By creating rules that suppliers must follow are companies possibly chasing away potential low- cost suppliers? 3. What problems might you foresee with this type of ethical procurement? How can companies ensure their suppliers are ethical?
Expert Answer:
Answer rating: 100% (QA)
Discussion Questions 1 Impact of Pressure on Developing Countries Are multinational companies making a difference The impact can vary Pressuring devel... View the full answer
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
In September, Larson Inc. sold 45,000 units of its only product for $438,000, and incurred a total cost of $405,000, of which $43,000 was fixed costs. The flexible budget for September showed total...
-
Discuss the risks and benefits of local warehouse personnel modifying forecast data for field warehouses.
-
Compound A diffuses through a 4-cm-long tube and reacts as it diffuses. The equation governing diffusion with reaction is Dd 2 A / dx 2 kA = 0 At one end of the tube, there is a large source of A at...
-
For each of the following, calculate the standard error of the difference \(\left(s \mathrm{X}^{-} 1-\mathrm{X}^{-} ight.\) \(2)\). a. N = 35, s = 1.50, N = 35, $2 = 3.25 b. N = 4, s = 4.30, N = 4,...
-
Aztec Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of May 31 have been taken from...
-
Explain how trade with low-wage countries affects jobs in the United States. How can the United States pay its workers higher wages than foreign nations and still be competitive in foreign markets?
-
Reconsider the Profit & Gambit Co. problem described in Section 2.6. Suppose that the estimated data given in Table 2.2 now have been changed as shown in the table that accompanies this problem....
-
Two pool balls of equal mass collide in a glancing hit. Before the collision, the cue ball is moving right at 3.0 m/s, and the 6-ball is stationary. After the collision, the cue-ball is deflected to...
-
Your brand is CANADIAN TIRE , where the annual report and other details of their strategy (e.g. online marketing strategy) is readily available via online resources. You will then compile 6 metrics...
-
Come up with your own scenario (state the products/industry) that illustrates a cannibalization rate of 27% and give me details of the different amounts of products sold in your scenario.
-
Case: LG Electronics Canada Inc - The Watch Phone what are the 4P's of the Marketing Plan of the LG Electronics Canada . Questions are: 1. Product 2. Placement/Distribution 3. Price 4. Promotion
-
How effective are the various leadership styles on employee engagement and employee empowerment in the Garden Depot case study? provide citation.
-
We have decided to focus our campaign's purpose on the UN sustainability goal of gender equality. With the intended commercial impact of raising brand awareness. X-runner will aim to launch a new...
-
S8 for 0
-
When a company has a contract involving multiple performance obligations, how must the company recognize revenue?
-
As an export marketer becomes more or less permanent in doing business in multi-foreign markets, it almost inevitably faces the issue of standardization vs. adaptation of its advertising programme....
-
Select an industrially developed country (perhaps Japan or a European country) and a relatively less developed country (perhaps a Latin American or African country). Contrast the relative importance...
-
In August 2010, Britains GlaxoSmithKline PLC (GSK) was facing the possibility that its highly profitable diabetes drug Avandia would have to be withdrawn from the US market. Sales of Avandia had...
-
If you let go of a helium balloon, it quickly rises. As it rises, the balloon gets larger and larger until it pops. Why does the balloon expand as it rises?
-
Elephant seals do deep dives to forage for food. The energy used by the seals in diving depends on their body composition; for example, fatter seals use less energy to swim to the surface at the end...
-
Early airshipscraft that relied on large volumes of low density gas to rise from the groundwere filled with hydrogen, but safety concerns necessitated a switch to helium. When an airship made the...
Study smarter with the SolutionInn App