Section D (Case Study (2 x 3 marks = 6 marks) For Economic Stakeholders Relation of Supply Chain of Company To what extent do business practices contribute to the community in which the organization is based and operating? As Organizations are become more global, so to minimize the cost the organizations are relocating their production facilities. It results in loss of jobs at bome and these jobs are taken by low paid employees in different part of the world. The positive poin about the globalization is that firms can produce the products where it makes most of sense. So, a product which is transporte from Hong Kong to USA different stages of production least workers or 10 countries are involved in productie process The negative point of this more globalized world is that you cannot take account of how different contractors employees are treated and there is more employee shes over As such, while advocates of offshoring or outsourcing oties point to the benefits the process brings to the workers in developing countries who have now some jobs.ultimately, is not clear of people who are employed because of this globalization are get benefit or not. The people in US are also not happy with loss of blue-collar and white collar jobs to human resource of other countries as they feel they are denied of an opportunity. Still some of the jobs may have been lost to advance system of manufacturing but still when company works in foreign lands it must also take care of charal and social issues of a country. The company not only faces the strategic issues but implementation of CSR procedure throughout the organization become difficult due to cultural differences to effects companies implantation of CSR in its supply chain operations. To what extent company can implement is thical values from "edical purchasing to proper disposal of the al product, and if it become a force for positive change How firm will deal with a conflict in CSR issue in the supply chain of the company Also, what will be the effect of the perceived abuse of labor and other CSR related issues on the image of organization at home soil. The people in developing countries are looking as opportunity when any foreign company install its prediction facility in their country but for people in west the working condition in these countries are not good and in their view many fundamental rights of human are compromised An important component of this argument, therefore, is the iden of cultural relatives to what extent should actions in ovencal countries he judge by home country meal, ethical and religious standards, and by what extent it has to be judged in historical and cultural conte in which they occur? Western NGOS, in particular in particular accused of actively Campaigned against the opening of Westem operations in developing countries based on Western notions of acceptable working conditions but they are not able to provide alimative source of investment if the company is forced to withdraw In short, while there are instances of cither extreme, it is not clear whether outsourcing and other foreign involvement in local COTTties overseas is absolute good or had Answer the following Questions Related to Case Study 13 Why does NIKE continue to source its production overseas? What advantages does this generate for the firm? What are the disadvantages that resut from the decision? Overal, do the benefits of NIKE's decision outweigh the costs? (3) It is fair to make a comparison between the amount NIKE pays its factory workers in Vietnam and the salaries of its CEO and the athletes that endorse the company's products? Give your opinion on the issue. (3)