Economic analyses of collusive bidding behavior Article

Economic analyses of collusive bidding behavior - Article Example In line with this, anyone who will be caught guilty of entering into a collusion to control the auction price of milk will be required to pay fine, sent to jail for a period of six month, or both (Porter & Zona, 1997). Despite the government’s effort to control the incidence of collusion in school milk auctions in the U.S., the culture behind collusion in school milk auctions has been going on for a long period of time. The economic issues behind the procurement process and nature of auction for school milk will be provided to give the readers a better understanding of the case study. In response to the case study, some of the key economic issues that could explain the development of collusion in school milk auction will be identified and tackled in details. In line with this, the impact of economic factors like prices, consumer welfare, actual and potential competitors on market competition will be examined to enable us to determine whether or not economic reasons could stimulate the high incidence of collusion in school milk auction will be answered. As part of going through the explanation, the theory of supply and demand will be use to explain what really happens in the market of school milk. The main purpose of the study is to encourage the student to develop his/her expertise in analyzing the economic factors that could trigger the high incidence of collusion in school milk auction in Ohio. The market of school milk supply in the United States is purely affected by the demand, production process, and competition among the suppliers within a geographic area (Porter & Zona, 1997). Although the market of school milk supply is dictated by supply and demand curve, the fact that each school conducts a yearly auction does not necessarily mean that a higher the demand for milk supply would invite more potential milk suppliers to join the

Scottish Development International and Scotland Research Paper

Scottish Development International and Scotland - Research Paper Example Nevertheless, the problems that may stem from cultural diversity in the workplace may outweigh the advantages, if not effectively managed hence impair the effectiveness and commitment of the team in achieving the objectives of the company. However, the question is how to identify these aspects of cultural diversity and thus developing a well elaborate strategic plan on dealing with this issue ethically. Additionally, the focus also needs to encompass the dimensions of conflict resolution and teamwork in the workplace. Consequently, drawing from vastly experienced managers in well established international organizations, they are quick to point out four major areas posing a challenge these include communication criteria, accents and language fluency, Attitude towards authority and the hierarchical structure of the organization and decision making norms in the organization. For better Understanding of the Subject on Cultural Conflict, it is important to look at the history of Scotland as a country. The people of Scotland are well known to be friendly and industrious (Scottish Culture, 2011). However, in the early days the Scottish people always resisted foreign cultures and evicted foreigners from their land. One good e xample to illustrate this was the highland clearance (Gunn, 2011). This clearly shows that the cultural conflict problem dates back to the formation of Scotland. The SDI Company is one of the companies in Scotland that faces the challenges of cultural diversity because of the type of business they are engaged in. The SDI Company is involved in helping other companies in Scotland deal with international trade hence this makes them a single point in terms on international trade dealings in Scotland. However, the main reason as to why the SDI Company is best suited in when it comes to studying and understanding cultural

Strategic audit of Asics Corporation Research Paper

Strategic audit of Asics Corporation - Research Paper Example It entails evaluating a corporations’ performance measured against its overall corporate (and business) strategy. Companies initiate strategic audits in situations where there is a disparity between its corporate performance and its strategic corporate goals. The corporate and business performance of a corporation is affected by both internal and external factors as well as the activities of competitors within the same industry. A strategic audit is an important tool for company managers and boards to pinpoint problems and hurdles preventing the achievement of their corporate strategic plans. This paper will evaluate the corporate performance of Asics Corporation by appraising the external factors, internal factors, the industry it operates in and its competitors. It will also draw conclusion and strategic recommendations based on the analysis done. Literature review Institutions are unable to discharge their corporate governance duties effectively until the boards concerned fully take ownership of the organizations’ strategy by conducting thorough audits much in the same way that financial audits are done (Rabate, 2007). Strategic audits are therefore indispensable tools for helping management and boards make competent and sound decisions about the firm in order to achieve its strategic plans. The performance of an organization in achieving its corporate plans are affected by both internal dynamics such as management, business strategies and key decisions for instance on production methods. External factors that include economic, political, and environmental as well as demographics affect the company’s performance. In evaluating internal factors, the age of the firm, its production processes and competencies, strategy, competencies and strategies in marketing and its management will be the centre of focus. This will be done using b usiness tools of SWOT analysis and PESTEL analysis. SWOT means Strengths, Weaknesses, opportunities and Threats and evaluates both the internal and external environment in which a firm operates. SWOT utilizes an integrated approach in auditing a firm and is one of the most useful and widely used tools to evaluate an organization logically, and if properly used is an important strategic planning tool (Ferrell & Hartline, 2008). External PESTEL on the other hand stands for Political, Economic, Social, Technological, Environmental, and Legal factors as they affect an organization and this mainly evaluates a firms’ external operating environment (Lorat, 2005). Political factors affecting Asics Operating globally in different political environments requires Asics to adapt and abide by business and corporate regulations in countries it has presence in like North America and Europe. These are in terms of taxes to be paid and business regulations. Economic factors affecting Asics For eign exchange fluctuations greatly affect Asics financial performance, for instance in 2008, its third quarter performance was lower than expected due to large swings in foreign exchange rates. This for instance saw its shares falling by 15 percent (Hall, 2008). The global financial crisis saw its 2010 earnings and revenue fall compared to 2009, after a three-year period of steady rise in revenues (â€Å"Financial Times†, 2012). Social factors The world’s populations are beginning to put greater effort into their health and fitness,

Zara Essay Example | Topics and Well Written Essays - 1250 words

Zara - Essay Example In order to evaluate the changes in the retail clothing industry and the position of Zara, an analysis of the external environment has been carried out with the help of five forces as described below. The forces which are favourable for Zara are attractive for their future prospects whereas the forces which are less attractive poses threat to the business of Zara. There other three major external forces that have substantial impact on the business of activities of Zara. These are social factors, technological factors and economic factors. In case of social factors, changing trend of people’s choices and preferences about their clothing and apparels is one of the major issues. The company has to keep high focus on this trend so that they can come up with new designs according to the new trend in the market. In case of technological factor, most important issue to look on is adoption and use of advanced technology i.e. hi-tech machineries and techniques of production and designi ng of clothes and apparels. In case of economic factor, the volatile economy of every developed and developing market is one of the major issues to look on. This factor has high impact on price of raw materials, operating cost of the company and lastly the price of finished products. External Environment analysis of Zara (Porter’s Five Forces Analysis) Competitive rivalry in the industry The retail market in the clothing industry is highly competitive due to the presence of the Big 4 in the apparel industry, namely Zara, The Gap, Benetton and the H&M. All these companies have adopted the strategy of expanding in the global markets which has been reflected in the tight competition for market share (OaShaughnessy 57). The financial performance of Zara in 2011 denotes that the company has performed exceedingly well as compared to its competitors. The profits of Zara have increased by 12% whereas the profits of Benetton, The Gap, and H&M have changed by only 1%. The competitive s uccess for Zara is an attractive external force for Zara which has been attained due to its responsive marketing, efficient supply chain and human resource management. Threat of new entrants The retail clothing industry is highly competitive with the increasing presence of clothing companies at the regional, national as well as in the global level. The new players are also targeting the apparel industry due to the shift towards the online mode of business. Although there is threat of new entrants, Zara is comfortable in the short term as the company has developed a brand image in the international marke

HW Assignment Example | Topics and Well Written Essays - 250 words - 15

HW - Assignment Example This idea is applicable to both work and residential places where people do not interact more often due to various reasons. People need diversity because it promotes social integration and the development of a strong bond in work or living places. Another idea that I would implement to improve the way I work or live is to observe the rules imposed by authorities. Being a law abiding citizen or worker enables one to concentrate on valuable activities that reduce imprisonment or suspensions from work. This implies that people should always follow the rules do not waste time in the courts or facing disciplinary committees, but concentrate on their activities. Encouraging colleagues and neighbors to observe rules helps in achieving objectives and promoting unity. This is because individuals are free to consult and share ideas in areas that require teamwork and offers a wider perspective of approaching issues. I believe introducing community projects for cultural appreciation and observing regulations are significant ideas that can improve the ways a person lives or works alongside

Genetic Information Essay Example for Free

Genetic Information Essay The goal of this essay is to determine whether the information presented within it could be considered a violation or a non-violation of the GINA of 2008. A case study has been determined to be a method to learn about a complex instance. This information is based on understanding the detailed instance and analyzing the context as a whole. I will be briefly discussing this case study. The GINA legislation had unanimous support when it was signed into law by President Bush. This case study is broken down into many different stories that focus on GINA. The Act was voted into Congress in 2008 (Hudson, Holohan, Collins, 2014). Case studies also describes an analyses of persons, events, decisions, periods, projects, policies, institutions, or other systems that are studied. GINA is being described as promoting genetic research and preventive screening, safeguard medical privacy, and prevent unfair treatment of individuals based on traits that are linked to diseases (Hudson, Holohan, Collins, 2014). There was talk about the threat that arises from the Supreme Court’s federalism revolution of 1995-2001. Chief Justice Rehnquist took greater strides in placing a limit on the power of Congress. These rules affected the Tenth, Eleventh, and Fourteenth Amendments along with the Commerce Clause that would balance the power of the state and federal (Tobin, 2008). It is stated in the fact sheet that â€Å"GINA expands the genetic information protections included in the Health Insurance Portability and Accountability Act of 1996 (HIPAA). HIPAA prevents a plan or issuer from imposing a preexisting condition exclusion provision based solely on genetic information, and prohibits discrimination in individual eligibility, benefits, or premiums based on any health factor (including genetic information)† (United States Department of Labor, 2009). Surveys was taken from 50 states that relied on the Bureau of Labor Statistics. These surveys showed disparities in private sector leave and  gender differences. Arguments are made over the distinction based on the level of scrutiny (Tobin, 2008). GINA was first introduced in 1995 in response to concerns about the misuse of information regarding genetic predispositions to various diseases. The bill sought to help those that was applying for insurance to keep them from being denied. According to GINA the analysis went wrong in some aspect of employment. The Supreme Court’s Section 5 jurisprudence insofar as they provide remedies for state employees (Tobin, 2008). It is also unlawful for a covered entity to disclose genetic information about applicants, employees or members. Covered entities must keep genetic information confidential and in a separate medical file (Tobin, 2008). There are limited exceptions to this non-disclosure rule, such as exceptions that provide for the disclosure of relevant genetic information to government officials investigating compliance with Title II of GINA and for disclosures made pursuant to a court order (Tobin, 2008). When it comes down to any type of employment the law forbids discrimination on the basis of genetic information which include hiring, firing, pay, job assignments, promotions, layoffs, training, fringe benefits, or any other type of employment. An employer should never use genetic information to make an employment decision because genetic information is not relevant to an individuals ability to work at any time (Tobin, 2008). A goal of the policy is to protect equality and privacy of an employer that lose their jobs as a result to genetic testing. According to Kimel and Garrett evidence that Congress collected is of no concern because it’s only in the private sector and not by state. Some states argued that being flexible to GINA is not consistent with the Court’s (Tobin, 2008). Instances in these cases shows the analysis of the areas that are considered too went wrong with GINA. For instance, courts need to apply heightened constitutional scrutiny to genetic discrimination. This will keep states from arguing against them and win stating its insufficient data. Another examples is there is a strong case for abrogating sovereign immunity in those cases where employers rely on the information that is took from genetic testing that has been linked to racial or ethnic backgrounds. The last reason is the provisions that uphold GINA’S privacy in 5 legislations has an uncertainty about it not being strong enough to work against state  employment. The Voting Rights Act Reauthorization Act was created in 2006 to place jurisdictions on the voting history of racial discrimination. The research from this act allowed congress to take action towards making decisions on these issues. Approval would have to come from the attorney General or a federal court. This pro vision help minority voters the ability to vote and make their voice heard through the election process (Tobin, 2008). Another concern was about racial profiling policies and procedures that needed to be changed to prohibit police from unjustly stereotyping individuals (Tobin, 2008). This bill called End Racial Profiling Act was entered into the legislations by Rep. John Conyers and Sen. Russ Feingold in 2001. The courts shouldn’t have invalidated the civil rights as it did because it didn’t put enough force on change for minorities. It has hesitantly enforced the rights of persecuted minorities and in many ways it has changed the face of the United States law and politics. I determined that GINA has been cited as a strong step forward, but I believe that the legislation does not go far enough in enabling personal control over genetic testing results. In conclusion, these cases have changed the livelihood of many people but more need to be done for better congressional. Some Courts have supported equal right while other decisions have hindered them. References Tobin, H. (2008). The Genetic Information Nondiscrimination Act of 2008: A Case Study of the Need For Better Congressional Responses to Federalism Jurisprudence. Retrieved from Ashford University. Hudson, K., Holohan, M. K., Collins, F. (2014). Keeping Pace with the Times – The Genetic Information Nondiscrimination Act of 2008. Retrieved from http://www.nejm.org/doi/full/10.1056/NEJMp0803964 United States Department of Labor (2009). Fact Sheet. Retrieved from http://www.dol.gov/ebsa/newsroom/fsGINA.html

Supply Chain Human Rights in Clothing Retailers

Supply Chain Human Rights in Clothing Retailers EXECUTIVE SUMMARY The present report is about the Importance of upholding human standards of the workers both inside and outside their home countries in the large clothing retailers. Human rights still remain to be one of the most challenging issues all over the world because of international variations in politics, history, social and cultural differences. The implementation of human rights, however, does not go unexcused in any place of situation regardless of the circumstances. Upholding of human rights is very important and it is the fundamental right of every human being. This report specifically focused on the Clothing Retailers operating in the United Kingdom. These include: Nike, Gap, Levi Strauss and Marks and Spencer. The task of this report was to examine how these multinational firms uphold human rights in their operations all over the world. The report has found out that among other factors, globalisation also contributed to a great extent for international firms to violate human rights. In the 1980s, shaped by globalization, clothing retailers and brand manufacturers were forced to source their produce and manufactured goods from low-wage, economically less developed countries. These less developed countries were in most cases characterised by child labour, sexual harassment, and intolerable working conditions. Global awareness about inhuman conditions in working places drew together voices of numerous activists from all over the world to divert the trend. During the 1970s, various national and multinational organization, Non governmental organization and trade unions accused these clothing retailers companies for violating human rights. These multinational companies were specifically blamed for their failure to put into consideration the economic level of less developed countries in which they operated. This criticism led to establishment of voluntary labour codes by these companies in an effort to uphold their image. Most of these voluntary labour codes adopted principles in the International Labour Organization (ILO) Conventions. Among other things, this report examines the historical aspect of clothing retailers and the challenges involved in upholding human rights in their supply chain production. The report further examines the role played by these clothing retailers in upholding human rights in their operations all over the world. CHAPTER ONE: 1. BACKGROUND INFORMATION 1.1. Introduction Human rights or sometimes referred to as natural rights are free and fundamental liberties entitled to an individual without the interference from any government or group of people for whatever reasons. A persons civil liberties are protected by the constitutions that define them and the organizations that exist to promote them. Under any circumstances the implementation of human rights does not go unexcused in any place or situation. Every individual regardless of his/her social economic status deserves to be treated with dignity. But due to rapid economic development, multinational companies are becoming more susceptible to violating human rights because of increasing international competition, undistributed wealth, and weak national laws (Krage, 2007). The World Commission on the Social Dimension of Globalization (2004) in one of its reports indicated that the global economy is changing in many ways. These massive changes affect multinational investment, capital markets, technology and business, more specifically impacting companies, consumers, workers and governments. The report further concludes that globalization has led to interdependence in economic relations that has created more opportunities for the advancement in business, investment, finance, organization of global production, and also more social and political interaction between organizations and individual around the world (World Commission on the Social Dimension of Globalization, 2004). It is unfortunate that not all countries are developing with the same pace and outcomes. Some countries specifically the developing countries, cannot utilize these rapidly growing expansion to their advantages (Misol, 2006). For example, there are plenty of evidences that increasing g lobal competition puts workers human rights in jeopardy because company protection standards are lowered and an employees civil liberties are often denied (Christerson and Applelbaum, 1995; Hathcote and Nam, 1999). In the 1970s, considerable criticism was raised against multinational companies regarding their operations in less developed countries. Nongovernmental organizations, national and international trade unions and many host countries raised concern that these multinational companies carried out their activities without giving any considerable and attention to host countries where they subcontracting or outsourcing their clothing factories to the economic and social development of those countries. This endless criticism by a number of activists from all over parts of the world led to the establishment of voluntary labour codes of conduct by these multinational companies (White and Taft, 2004). This report therefore is a result of the search of literature review regarding the upholding of human rights standards by large clothing retailers in their day to day operations, both within their countries of origin and overseas. 1.2 Aims and Objectives The general aim of this report is to examine the trend of large clothing retailers in upholding human rights in their operations with particular emphasis to those operating in the United Kingdom. These multinational large clothing retailers in question are: Nike, Gap, Marks Spencer and Levi Straus. To realize the desired aim, the report focused on the following objectives: Â · To explore the historical background with regard to textile sector and their compliance to human rights. Â · To examine the rise of the ethical business and the effects of Voluntary Labour Standards (Codes of Conduct) in the textile industry. Â · To examine the role played by these multinational large clothing retailers in upholding human rights as well as challenges facing them. CHAPTER TWO: 2. LITERATURE REVIEW, ANALYSIS AND DISCUSSION 2.1 LITERATURE REVIEW 2.1.1 Human Rights, Ethics and Business Ethics defined Human rights, ethics and business ethics defined in differently ways by different authors and all the definitions in the essence of the same thing. According to Rory Sullivan, he define Human rights as a moral right that apply to all employees in all nations regardless and acknowledge and protects those rights in the sense that human right are said to be unchangeable. On the other hand, Boddy (2005) argues that human rights means the idea that people have fundamental rights and liberties, and affected, those rights include consent, privacy, conscience, free speech, fair treatment and to life and safe. Similarly, the United National Universal Declaration for Human Rights (UDHR) defines human rights as a way of the incorporated economic, social cultural rights, such as right to work, right for educations, respect for their culture and a decent standard of living (Rude Mares). Crane (2007) refers as the ethics as the study of morality and the application of reason to explain special rul es and principles that determine right and wrong for a given situation at given time, those rules and doctrine are called ethical theories. However Fritz et al, (1999), and Hunt et al (1989) define ethical company as the conduct of conduct which are positively related to employees organizational commitment. Boddy (2005) define ethics as code of right principles and values that guide the actions of people and groups through set standard of the behaviour which is acceptable, especially when an action or decision can harm others. Taylor (1975) define business ethics as the business environment and basis of right decision, principles, and set of laws of the ways of carrying out the businesses activities between different parties within the organization, such as employees, customers, suppliers and the shareholders in the determination of the what is right or wrong to all parties. White and Taft (2004) indicate that ethics have been divided into two main categories, namely: teleological and deontological. With teleological ethics the emphasis is on the consequences or results of actions. This approach to ethics takes no accoun t of whether actions are rights or wrong but rather depends on whether harm or good results from the action. On the other hand, the teleological theories, includes utilitarianism, egoism, and care. The essence of the approach maintain that acts do not have intrinsic value but should be evaluated on the basis of the actions they produce and their effects others. The utilitarianism approach is based on the early ideas from Jeremy Benthams belief in empiricism and that of John Stuart Mill in the 18th century (Rosenstad, 1997; Velasquez, 1998). Utilitarianism takes a societal perspective on costs and benefits of ethical choice, indicating that any action should be evaluated in terms of its consequences. The idea is to determine how much good or harm it causes and the effects it impart on all parties. Utilitarianism is thus meant to promote the welfare of all persons by minimizing harm and maximizing benefits. This approach gives much attention to achieving desirable effects to many people taking into consideration human rights. The recent United States health care policy is seen as one of the utilitarian-driven public policy decision, in which the change is geared to a system that provides fundamental health and illness services to everyone. With deontological approach to ethics, White and Taft (2004) explain that an action or a decision in itself has intrinsically good or bad (or right or wrong) and thus it cant be judged by the mere results. Rights, justice, fairness, truth-telling, and virtue ethics form the deontological approach of reasoning. For example, a moral person would based on what is rights to her or him in making an ethical decision, putting into consideration the moral principles, rules or regulations, regardless of the circumstances of results. 2.1.2 Sourcing in the Textile Industry Christerson and Appelbaum, (1995) pointed that during the nineties there was a massive shift in the manufacturing of clothing to low wage countries throughout the world. International companies sourced products internationally in order to achieve a cost advantage. Traditionally, the framework of competition in the textile/clothing sector is described by dividing operators into two different strategic groups in terms of production management models. Firstly, there is a group identifiable as clothing operators (either manufactures or retailers). This group is primarily concerned with designing, modelling, forecasting and contributing to the development of fashion trends. Firms in this category are busy working on marketing strategies of product designed and proposed long before the actual time of consumption. The second group includes firms that compete with one another on the basis of their ability to adjust to the fashion trends imposed by others. By doing this they ensure speed and reliability to their already secured markets. These firms compensate for the lack of product planning by virtue of a production management model whose main characteristics are rapidity and flexibility. The two groups, therefore, have different factors that lie behind their success. In the first group, priority in their operations is to make sure that they have good command and influence fashion trends associated with a strong brand image. In the second group, the emphasis is on effective marketing strategies (Hathcote and Nam, 1999). Stiff competition, shaped by globalization, clothing retailers and brand manufacturers were forced to sourced their produce and manufactured goods to low-wage, economically less developed countries (Crewe, 2004; Klein, 2000). Consequently the late 1980s and early 1990s saw traditional European and U.S. based garment and footwear companies start off shoring and outsourcing much of their production from developing countries (Jones, 2005). This trend was particularly visible in low-skilled industries, such as the garment, footwear, and toy industries (Christerson and Appelbaum, 1995; Hathcote and Nam, 1999). Under conditions of competition, individuals cannot comply with moral norms. This leads to higher costs which in turn leave them worse off than their competitors. Situations like this systematically lead to an erosion of compliance with moral norms. Via evolution, individuals behaving morally will be signed out. Karl Marx and Max Weber saw this problem clearly. Both pointed out that competitive market makes it impossible for single individuals to follow the calls of morality and self-interest at the same time. The structures of society have changed in modern times, but ethical concepts and categories have at least to a large extent not changed. Most conceptions of ethics still require us to be moderate, to share, to redistribute, to sacrifice. They call for altruism, for the priority of common good and the like. The pursuit of self interest, of individual advantages, is often still ultimately seen as something like and evil drive that needs to be tamed (Christoph, 2005). Globalization has therefore been one of the factors for previous human rights violations in many multinational companies (Misol, 2006). Ambitious to mass super profits, these multinational companies embarked on child labour exploitation, suppression of labour rights in their supply chains. This led to persistence public outcry that helped to amplify global awareness about the injustices and human rights violations done by multinational companies in their chain supply production. 2.1.3 The Rise of Ethical Business and Corporate Social Responsibility There is a wide spread attention and interest in self-regulation, corporate social responsibility that continually press many companies to adhere to human rights in their operations. Ethical business, involving corporate codes of conduct for worker welfare and environmental protection, it is a subject that has attracted significant interest from academicians, the media and nongovernmental organizations (NGOs) for many years now (Hughes, 2005). (Crane et al 2007) indicate how the importance of business ethics it is, in attracting different massive amount attention for various people example the shouter of the consumers and pressure groups that appearing to have an increasing of the challenging the firms in the asking of the more ethical and reasonably ways of doing business. Ethical business has emerged since the early 1990s as a specific example of corporate social responsibility, most commonly involving the establishment of minimum labour standards for producers in supply chains (Hathcote and Nam, 1999). Blowfield (1999), however, highlights that the issue of ethical business is broadened to incorporate a wider range of standards, including those concerned with the environment. Furthermore corporate social responsibility stand in the implementation for set core values that includes avoiding human rights abuses, upholding the right for the workers to join or form labour unions, elimination of compulsory and child labour and avoiding workplace discrimination (Cavusgil, Knight and Riesenberger 2008) However people like the later Rev. Leon Sullivan had been much concerned about code of conduct of human rights in workplace and in 1999, he developed a set of guidelines for corporate social responsibility, he argue that for the companies operations around the world should support and follow the Global Sullivan of corporate social responsibility. The aim and objectives was to maintain economic, social, and political justice by companies where they are doing business, to support human rights and to encourage equal opportunity at all levels of employment in developed and developing countries (www.thesullivanfoundation.org). Concerns in the early 1990s over child labour, physical and verbal abuse and violations of core labour rights in the production of toys, soccer balls, rugs, and garments marked the beginning of a wave of anti-sweatshop protests and media campaigns (Varley, 1998). Some of the earliest campaigns focused on production in China for companies like Levi Strauss and others, where the Tiananmen Square massacre in 1989 and U.S.-China trade negotiations drew special attention to human rights abuses. Bonacich and Appelbaum (2000) mentioned other anti-sweatshop protests that brought remarkable attention regarding human rights violations were those that showed child labour in the production of soccer balls in Pakistan, rugs in India, and garments in Bangladesh and Honduras. One of the most dramatic early sweatshop scandals occurred in the U.S, in the Los Angeles, California suburb of EI Monte. It was there, in 1995, that government inspectors discovered Thai immigrants working as indentured serv ants in an apartment complex, sewing garments to be sold by major retailers, including Montgomery Ward, Target, and Sears (Su 1997). The next year, labour rights activists brought sweatshops further into the American media spotlight, by exposing child labour in a Honduran factory producing Kathie Lee Giffords line of clothing for Wal-Mart, as well as a New York City sweatshop also producing Kathie Lee Giffords brand (Bonacich and Appelbaum 2000). Further to this, the suppression of labour rights in Indonesia, El Salvador, and several shocking instances of physical abuse in other parts of the developing world raised concern. In the early 1990s activists first accused footwear companies like Nike, Wal-Mart, and the Gap of profiting from exploitation, child labour, and the suppression of labour rights in their supply chains. These companies, however, responded by denying the responsibility (Hughes, 2005). According to Cavusgil, Knight and Riesenberger (2008) activists also accused International business specifically in the case of the multinational companies for ignores human rights by exploited workers around the world mostly in labour standard; low wages factories in developing countries by create substandard working conditions, example for the sweatshops in Asia where they imported clothing and auto workers in Mexico. Jenkins et al (2002) argue that the rise of voluntary corporate code of conduct in the 1990s can be linked to some extent to the processes of globalization. They mention the specific drivers of voluntary ethical trading initiatives as being: a) the growth of global supply chains that extend beyond the reach of national governments; b) the rise in the power of corporate brands and reputation, which makes large companies vulnerable to negative publicity; c) an increase in public awareness of overseas production conditions via improvements in global communications; and d) the growing importance to the investment community of ethical performance on the part of public companies. Furthermore, there were various initiatives concerned with labour and environmental issues that were categorized as ethical business. These included: (1) Multistakeholder organizations such as the UK Ethical Trading Initiative (ETI), the Dutch Fair Wear Foundation, and the Fair Labour Association and Worker Rights Consortium in the USA, which all set minimum labour standards for producers; (2) labelling initiatives such as the Kenya Flower Council, which cover industry-specific environmental and labour standards; (3) individual corporate initiatives for establishing minimum standards in supply chains (Blowfield, 1999). These early initiatives were among the significant steps in promoting ethical business. Blowfield (1999) and Jenkins et al, (2002) argue that these initiatives also developed within the context of the United Nations Global Compact such as international standards which aimed to promote corporate citizenship in the global economy. Despite the organizational differences between existing ethical trading initiatives, most companies used some kind of code of conduct as the key tool for establishing workplace standards. 2.1.4 Voluntary Labour Standards (Codes of Conduct) Pressures on multinational companies by anti-sweatshop groups, labour unions, shareholders, activists, and consumer groups played an important role for companies to adopt labour standards. Standards refer with corporate code standard mention International by ILO (International Labour Organization) to the extent to which is explicitly or implicitly can either be done through the inclusion of the basic provisions of international organizations in the corporate codes standards (Van Tulder Kolk, 2002). Similarly, there were also greater pressures from governmental campaigns all over the world. Where in European countries, some of the government such as France were be advocating for greater attention to human rights in the sphere of international business. Along with such efforts from various countries, the European Commission had been carried out a research in the international subcontracting companies about the social aspect of textile clothing and footwear firms. Aiming to the extent in which the researches discover that these multinational companies adhered to human rights in their operations (Kolk and van Tulder, 2002). In 1996, President Clinton Launched the White House Apparel Industry on Workplace Standard (AIP), he launched the AIP after seen the violation of human rights in the clothing industries by multinational companies, the aim was to established standards and to ensure apparel and footwear were not made under sweatshops working conditions (Meyer and De Wit (2004). Due to the human right violation in textiles sectors precisely in the sweatshops conditions, The Clinton Administration established campaign against sweatshops in the clothing Textiles worked under sweatshops conditions in USA, the campaign was called No-Sweat and was introduced for the purpose fighting against sweatshops in which resulted to establishment of the Trendsetter List of companies in the Textiles Clothing and Footwear Factories. The campaign was aiming for the Clothing Textiles Factories to respect human rights and labour legislation in the production and marketing activities of the clothing and footwear in general, to make sure that both the clothing companies and their subcontracting companies as are, they must significant put into consideration and respecting these rights. The lack of the about not respect the rights, a number of labour legislation and human rights had been identified by the Department of Labour in the Textiles Clothing and Footwear factories, in subcontracting in particular of apparel production, facing the multinational companies, that was exploitation with a number of cases involving in human rights particularly the immigrant workers in sweatshops established on the United States regional, took steps to clean up the sectors. However, United States boundary put up on the sweatshops issue, took up steps to clean the sector (Elliot and Freeman (2001). Specifically in the area of child labour and, for example, the United States Government took a number of steps to alleviate the problems. Between 1994 and 1996 because of the important of the issue, the Bureau of International Labour affairs managed to organize three public gatherings to have views on child labour. These public platforms brought together a number of activists and the public at large to discuss various issues related to child labour. Specifically, they focused on the worst conditions of child abuse in the less developed countries that they exported products to the United States. A number of resolutions were made but all geared to put to end the merciless violations of human rights and child labour (Elliot and Freeman (2001). The Association of the Clothing Manufacturers of the USA and the Amalgamated Clothing Textiles Workers Union in 1995 agreed to have a National Branch for Collective Agreement. The agreement among other things included: the need to establish minimum standards regarding number of working hours, wages, and working conditions. In addition, the agreement also focused on a number of issues ranging from non-intolerance forced work, child employee, liberty of association, to occupational safety and health (White and Taft, 2004; and Giwerth, 1982). This was a trend in many parts of the world. Several national and multinational organizations and trade unions endeavoured to draw attention to respect human rights. Pressures from activities increased the formation of human rights association and in 1998 established of the Fair Labour Associations (FLA) to the overseas compliance, the Workplace Code of Conduct. The goals of Fair Labour Association (FLA) were for the companies required to monitor t heir own factories and their subcontractors to make sure there is compliance of the Code of Conduct in the textile factories (Meyer and De Wit, 2004). Klein (1999) pointed out that many firms had invested heavily in branding and reputation capital and therefore any high profile scandals and political pressures could tarnish their reputation. In the face of such pressure, it was not surprising that firms adopted voluntary standards to try to deflect criticism, pre-empt regulation, and signal their social responsibility to consumers and investors. The important factor in adoption of voluntary labour codes was to uphold public image which the company wanted to project to its customers, employees, suppliers and shareholders. Thus the clothing retailers public image became important than anything else. These multinational companies worked hard to clear their images and had no option but to promote codes of conduct. The public image was particularly important because it determined the extent to which the companys products could be bought. Given the rapidly growing competition in the global markets and communication in technology, it was essential for a company to improve the working conditions in its operations and retain its good image to customers (Kolk and van 2002). The United Nation Universal Declaration of Human Rights was adopted by the General Assembly in 1948 (Schulz, 2001). The declaration proclaims on the issue of the slavery or servitude subjected to inhuman or degrading treatment or punishment put them into detention or exile and arbitrary arrest subjected. Moreover the declaration goes on to proclaim that everyone needs to live in liberty and everyone have a right to security, everyone have equal protection against any discrimination, and everyone have a the rights for work, everyone have free choice of employment, to just and favourable conditions of work, and to protection against unemployment as a result of discrimination has entitled. The international Labour organization (ILO) was created in 1919 as a tripartite organization of government, business, and union representatives from 174 nations. Since then, it has adopted 177 lengthy labour conventions or standards. Seven of these are considered fundamental human rights, addressing issues such as forced labour, equal pay for men and women, discrimination in the workplace, and the minimum age for employment (White and Taft, 2004). Organizations such as Amnesty International have specified clearly workers right such as freedom of association, the right of collective bargaining and working conditions and soon. The organization is for Human Rights and as Watch Report on human rights well being all around the world and strives to ensure the protection and progression of them as well. Amnesty International is an organization whose vision was derived from the United Nations Universal Declaration of Human Rights, was adopted by the General Assembly Resolution in 1948. It is adopted for the reasons monitoring the protection and standard of human rights as were established in thirty articles that later set the primary foundation to the policies and standard that carried out by NGOs and other agencies with the purpose to protect and promote fundamental rights (www.amnesty.org). The Social Accountability International (SAI), established in 1977, is an organization that for promotes human rights for workers around the world. Its SA8000 standards are obtained from the Universal Declaration of Human Rights and the International Labour Organisation (ILO) convention. The standards are designed to make workplace more humane and also to offer more benefits for the companies and its employees. Employees that work under SA8000 standards they have profit from the enhanced opportunity of collective bargaining and to organize trade unions. Also, employees become more educated about their rights which in turn, commits to have assurance for a better work environment. The companies as whole, benefits from the SA8000 guidelines because it strengthens and put company values into action and enhances the company reputation (Krage, 2007). The International Labour Organization Declaration (ILO) on the Fundamental Principles at work were adopted in 1998 and was an expression of commitment by governments, employers and workers organizations to uphold basic human rights (Kolk et al 2001).The Declaration covers four areas; liberty of the trade union and the right to collective bargaining, elimination of forced and compulsory work, Abolition of child employee and elimination of discrimination of human rights. The Voluntary Principles on Security and Human Rights were developed by governments of the U.S. UK, Norway, Netherlands and NGOs, who all were have the common interest in human rights and corporate social responsibility (voluntaryprinciple.org). There were six principles that all participants agents agreed on in order to promote and protect human rights in multinational companies. The six Voluntary Principle as stated on their website are as follows: acknowledge that security is a fundamental need; Understanding that governments have the primary responsibility to promote and protect human rights; Particularly those set forth in the Universal Declaration of Human rights; Emphasizing the importance of safeguarding the integrity of company personnel and property; Taking note of the effect of those companies, activities and decisions affect the local community; Understanding that useful, credible information is a major component of security and human rights. The Global Reporting Initiative (GRI) is multi-stakeholder governed institution that provides global standards for the promotion of sustainable development. Judy Henderson, immediate past-Chair, Board of Directors says The GRI is a unique, multi-stakeholder organization founded on the conviction consistent, regular and comparable reporting, provides transparency and can be a powerful catalyst to improve performance (globalreporting.org). There are nearly 1000 organization in over 60 countries that have established their involvement with the GRI reporting framework. This reporting framework guides corporations and organizations on the reporting their sustainability performance to promote company progression and improvement in all area of business. The reporting guidelines contain principles, guidance, and standard disclosures that formulate a structure that cooperating organizations can voluntarily adopt (www.globalreporting.org). The UNs Global Compact is a purely voluntary guide to promoting responsible corporate citizenship. Its two main objectives are: to mainstream its ten (10) principles in business activities around the world and initiate actions to support United Nations goals (www.unglobalcompact.org) 2.1.5 Adoption of Voluntary Labour Standards (Codes of Conduct) by Multinational Companies and their Impact The rapid diffusion of labour standards (codes of conduct) stems from the response to external pressures (actual or threatened) from media, activists, government, and consumers (Shaw, 1999). In a like manner, (H Supply Chain Human Rights in Clothing Retailers Supply Chain Human Rights in Clothing Retailers EXECUTIVE SUMMARY The present report is about the Importance of upholding human standards of the workers both inside and outside their home countries in the large clothing retailers. Human rights still remain to be one of the most challenging issues all over the world because of international variations in politics, history, social and cultural differences. The implementation of human rights, however, does not go unexcused in any place of situation regardless of the circumstances. Upholding of human rights is very important and it is the fundamental right of every human being. This report specifically focused on the Clothing Retailers operating in the United Kingdom. These include: Nike, Gap, Levi Strauss and Marks and Spencer. The task of this report was to examine how these multinational firms uphold human rights in their operations all over the world. The report has found out that among other factors, globalisation also contributed to a great extent for international firms to violate human rights. In the 1980s, shaped by globalization, clothing retailers and brand manufacturers were forced to source their produce and manufactured goods from low-wage, economically less developed countries. These less developed countries were in most cases characterised by child labour, sexual harassment, and intolerable working conditions. Global awareness about inhuman conditions in working places drew together voices of numerous activists from all over the world to divert the trend. During the 1970s, various national and multinational organization, Non governmental organization and trade unions accused these clothing retailers companies for violating human rights. These multinational companies were specifically blamed for their failure to put into consideration the economic level of less developed countries in which they operated. This criticism led to establishment of voluntary labour codes by these companies in an effort to uphold their image. Most of these voluntary labour codes adopted principles in the International Labour Organization (ILO) Conventions. Among other things, this report examines the historical aspect of clothing retailers and the challenges involved in upholding human rights in their supply chain production. The report further examines the role played by these clothing retailers in upholding human rights in their operations all over the world. CHAPTER ONE: 1. BACKGROUND INFORMATION 1.1. Introduction Human rights or sometimes referred to as natural rights are free and fundamental liberties entitled to an individual without the interference from any government or group of people for whatever reasons. A persons civil liberties are protected by the constitutions that define them and the organizations that exist to promote them. Under any circumstances the implementation of human rights does not go unexcused in any place or situation. Every individual regardless of his/her social economic status deserves to be treated with dignity. But due to rapid economic development, multinational companies are becoming more susceptible to violating human rights because of increasing international competition, undistributed wealth, and weak national laws (Krage, 2007). The World Commission on the Social Dimension of Globalization (2004) in one of its reports indicated that the global economy is changing in many ways. These massive changes affect multinational investment, capital markets, technology and business, more specifically impacting companies, consumers, workers and governments. The report further concludes that globalization has led to interdependence in economic relations that has created more opportunities for the advancement in business, investment, finance, organization of global production, and also more social and political interaction between organizations and individual around the world (World Commission on the Social Dimension of Globalization, 2004). It is unfortunate that not all countries are developing with the same pace and outcomes. Some countries specifically the developing countries, cannot utilize these rapidly growing expansion to their advantages (Misol, 2006). For example, there are plenty of evidences that increasing g lobal competition puts workers human rights in jeopardy because company protection standards are lowered and an employees civil liberties are often denied (Christerson and Applelbaum, 1995; Hathcote and Nam, 1999). In the 1970s, considerable criticism was raised against multinational companies regarding their operations in less developed countries. Nongovernmental organizations, national and international trade unions and many host countries raised concern that these multinational companies carried out their activities without giving any considerable and attention to host countries where they subcontracting or outsourcing their clothing factories to the economic and social development of those countries. This endless criticism by a number of activists from all over parts of the world led to the establishment of voluntary labour codes of conduct by these multinational companies (White and Taft, 2004). This report therefore is a result of the search of literature review regarding the upholding of human rights standards by large clothing retailers in their day to day operations, both within their countries of origin and overseas. 1.2 Aims and Objectives The general aim of this report is to examine the trend of large clothing retailers in upholding human rights in their operations with particular emphasis to those operating in the United Kingdom. These multinational large clothing retailers in question are: Nike, Gap, Marks Spencer and Levi Straus. To realize the desired aim, the report focused on the following objectives: Â · To explore the historical background with regard to textile sector and their compliance to human rights. Â · To examine the rise of the ethical business and the effects of Voluntary Labour Standards (Codes of Conduct) in the textile industry. Â · To examine the role played by these multinational large clothing retailers in upholding human rights as well as challenges facing them. CHAPTER TWO: 2. LITERATURE REVIEW, ANALYSIS AND DISCUSSION 2.1 LITERATURE REVIEW 2.1.1 Human Rights, Ethics and Business Ethics defined Human rights, ethics and business ethics defined in differently ways by different authors and all the definitions in the essence of the same thing. According to Rory Sullivan, he define Human rights as a moral right that apply to all employees in all nations regardless and acknowledge and protects those rights in the sense that human right are said to be unchangeable. On the other hand, Boddy (2005) argues that human rights means the idea that people have fundamental rights and liberties, and affected, those rights include consent, privacy, conscience, free speech, fair treatment and to life and safe. Similarly, the United National Universal Declaration for Human Rights (UDHR) defines human rights as a way of the incorporated economic, social cultural rights, such as right to work, right for educations, respect for their culture and a decent standard of living (Rude Mares). Crane (2007) refers as the ethics as the study of morality and the application of reason to explain special rul es and principles that determine right and wrong for a given situation at given time, those rules and doctrine are called ethical theories. However Fritz et al, (1999), and Hunt et al (1989) define ethical company as the conduct of conduct which are positively related to employees organizational commitment. Boddy (2005) define ethics as code of right principles and values that guide the actions of people and groups through set standard of the behaviour which is acceptable, especially when an action or decision can harm others. Taylor (1975) define business ethics as the business environment and basis of right decision, principles, and set of laws of the ways of carrying out the businesses activities between different parties within the organization, such as employees, customers, suppliers and the shareholders in the determination of the what is right or wrong to all parties. White and Taft (2004) indicate that ethics have been divided into two main categories, namely: teleological and deontological. With teleological ethics the emphasis is on the consequences or results of actions. This approach to ethics takes no accoun t of whether actions are rights or wrong but rather depends on whether harm or good results from the action. On the other hand, the teleological theories, includes utilitarianism, egoism, and care. The essence of the approach maintain that acts do not have intrinsic value but should be evaluated on the basis of the actions they produce and their effects others. The utilitarianism approach is based on the early ideas from Jeremy Benthams belief in empiricism and that of John Stuart Mill in the 18th century (Rosenstad, 1997; Velasquez, 1998). Utilitarianism takes a societal perspective on costs and benefits of ethical choice, indicating that any action should be evaluated in terms of its consequences. The idea is to determine how much good or harm it causes and the effects it impart on all parties. Utilitarianism is thus meant to promote the welfare of all persons by minimizing harm and maximizing benefits. This approach gives much attention to achieving desirable effects to many people taking into consideration human rights. The recent United States health care policy is seen as one of the utilitarian-driven public policy decision, in which the change is geared to a system that provides fundamental health and illness services to everyone. With deontological approach to ethics, White and Taft (2004) explain that an action or a decision in itself has intrinsically good or bad (or right or wrong) and thus it cant be judged by the mere results. Rights, justice, fairness, truth-telling, and virtue ethics form the deontological approach of reasoning. For example, a moral person would based on what is rights to her or him in making an ethical decision, putting into consideration the moral principles, rules or regulations, regardless of the circumstances of results. 2.1.2 Sourcing in the Textile Industry Christerson and Appelbaum, (1995) pointed that during the nineties there was a massive shift in the manufacturing of clothing to low wage countries throughout the world. International companies sourced products internationally in order to achieve a cost advantage. Traditionally, the framework of competition in the textile/clothing sector is described by dividing operators into two different strategic groups in terms of production management models. Firstly, there is a group identifiable as clothing operators (either manufactures or retailers). This group is primarily concerned with designing, modelling, forecasting and contributing to the development of fashion trends. Firms in this category are busy working on marketing strategies of product designed and proposed long before the actual time of consumption. The second group includes firms that compete with one another on the basis of their ability to adjust to the fashion trends imposed by others. By doing this they ensure speed and reliability to their already secured markets. These firms compensate for the lack of product planning by virtue of a production management model whose main characteristics are rapidity and flexibility. The two groups, therefore, have different factors that lie behind their success. In the first group, priority in their operations is to make sure that they have good command and influence fashion trends associated with a strong brand image. In the second group, the emphasis is on effective marketing strategies (Hathcote and Nam, 1999). Stiff competition, shaped by globalization, clothing retailers and brand manufacturers were forced to sourced their produce and manufactured goods to low-wage, economically less developed countries (Crewe, 2004; Klein, 2000). Consequently the late 1980s and early 1990s saw traditional European and U.S. based garment and footwear companies start off shoring and outsourcing much of their production from developing countries (Jones, 2005). This trend was particularly visible in low-skilled industries, such as the garment, footwear, and toy industries (Christerson and Appelbaum, 1995; Hathcote and Nam, 1999). Under conditions of competition, individuals cannot comply with moral norms. This leads to higher costs which in turn leave them worse off than their competitors. Situations like this systematically lead to an erosion of compliance with moral norms. Via evolution, individuals behaving morally will be signed out. Karl Marx and Max Weber saw this problem clearly. Both pointed out that competitive market makes it impossible for single individuals to follow the calls of morality and self-interest at the same time. The structures of society have changed in modern times, but ethical concepts and categories have at least to a large extent not changed. Most conceptions of ethics still require us to be moderate, to share, to redistribute, to sacrifice. They call for altruism, for the priority of common good and the like. The pursuit of self interest, of individual advantages, is often still ultimately seen as something like and evil drive that needs to be tamed (Christoph, 2005). Globalization has therefore been one of the factors for previous human rights violations in many multinational companies (Misol, 2006). Ambitious to mass super profits, these multinational companies embarked on child labour exploitation, suppression of labour rights in their supply chains. This led to persistence public outcry that helped to amplify global awareness about the injustices and human rights violations done by multinational companies in their chain supply production. 2.1.3 The Rise of Ethical Business and Corporate Social Responsibility There is a wide spread attention and interest in self-regulation, corporate social responsibility that continually press many companies to adhere to human rights in their operations. Ethical business, involving corporate codes of conduct for worker welfare and environmental protection, it is a subject that has attracted significant interest from academicians, the media and nongovernmental organizations (NGOs) for many years now (Hughes, 2005). (Crane et al 2007) indicate how the importance of business ethics it is, in attracting different massive amount attention for various people example the shouter of the consumers and pressure groups that appearing to have an increasing of the challenging the firms in the asking of the more ethical and reasonably ways of doing business. Ethical business has emerged since the early 1990s as a specific example of corporate social responsibility, most commonly involving the establishment of minimum labour standards for producers in supply chains (Hathcote and Nam, 1999). Blowfield (1999), however, highlights that the issue of ethical business is broadened to incorporate a wider range of standards, including those concerned with the environment. Furthermore corporate social responsibility stand in the implementation for set core values that includes avoiding human rights abuses, upholding the right for the workers to join or form labour unions, elimination of compulsory and child labour and avoiding workplace discrimination (Cavusgil, Knight and Riesenberger 2008) However people like the later Rev. Leon Sullivan had been much concerned about code of conduct of human rights in workplace and in 1999, he developed a set of guidelines for corporate social responsibility, he argue that for the companies operations around the world should support and follow the Global Sullivan of corporate social responsibility. The aim and objectives was to maintain economic, social, and political justice by companies where they are doing business, to support human rights and to encourage equal opportunity at all levels of employment in developed and developing countries (www.thesullivanfoundation.org). Concerns in the early 1990s over child labour, physical and verbal abuse and violations of core labour rights in the production of toys, soccer balls, rugs, and garments marked the beginning of a wave of anti-sweatshop protests and media campaigns (Varley, 1998). Some of the earliest campaigns focused on production in China for companies like Levi Strauss and others, where the Tiananmen Square massacre in 1989 and U.S.-China trade negotiations drew special attention to human rights abuses. Bonacich and Appelbaum (2000) mentioned other anti-sweatshop protests that brought remarkable attention regarding human rights violations were those that showed child labour in the production of soccer balls in Pakistan, rugs in India, and garments in Bangladesh and Honduras. One of the most dramatic early sweatshop scandals occurred in the U.S, in the Los Angeles, California suburb of EI Monte. It was there, in 1995, that government inspectors discovered Thai immigrants working as indentured serv ants in an apartment complex, sewing garments to be sold by major retailers, including Montgomery Ward, Target, and Sears (Su 1997). The next year, labour rights activists brought sweatshops further into the American media spotlight, by exposing child labour in a Honduran factory producing Kathie Lee Giffords line of clothing for Wal-Mart, as well as a New York City sweatshop also producing Kathie Lee Giffords brand (Bonacich and Appelbaum 2000). Further to this, the suppression of labour rights in Indonesia, El Salvador, and several shocking instances of physical abuse in other parts of the developing world raised concern. In the early 1990s activists first accused footwear companies like Nike, Wal-Mart, and the Gap of profiting from exploitation, child labour, and the suppression of labour rights in their supply chains. These companies, however, responded by denying the responsibility (Hughes, 2005). According to Cavusgil, Knight and Riesenberger (2008) activists also accused International business specifically in the case of the multinational companies for ignores human rights by exploited workers around the world mostly in labour standard; low wages factories in developing countries by create substandard working conditions, example for the sweatshops in Asia where they imported clothing and auto workers in Mexico. Jenkins et al (2002) argue that the rise of voluntary corporate code of conduct in the 1990s can be linked to some extent to the processes of globalization. They mention the specific drivers of voluntary ethical trading initiatives as being: a) the growth of global supply chains that extend beyond the reach of national governments; b) the rise in the power of corporate brands and reputation, which makes large companies vulnerable to negative publicity; c) an increase in public awareness of overseas production conditions via improvements in global communications; and d) the growing importance to the investment community of ethical performance on the part of public companies. Furthermore, there were various initiatives concerned with labour and environmental issues that were categorized as ethical business. These included: (1) Multistakeholder organizations such as the UK Ethical Trading Initiative (ETI), the Dutch Fair Wear Foundation, and the Fair Labour Association and Worker Rights Consortium in the USA, which all set minimum labour standards for producers; (2) labelling initiatives such as the Kenya Flower Council, which cover industry-specific environmental and labour standards; (3) individual corporate initiatives for establishing minimum standards in supply chains (Blowfield, 1999). These early initiatives were among the significant steps in promoting ethical business. Blowfield (1999) and Jenkins et al, (2002) argue that these initiatives also developed within the context of the United Nations Global Compact such as international standards which aimed to promote corporate citizenship in the global economy. Despite the organizational differences between existing ethical trading initiatives, most companies used some kind of code of conduct as the key tool for establishing workplace standards. 2.1.4 Voluntary Labour Standards (Codes of Conduct) Pressures on multinational companies by anti-sweatshop groups, labour unions, shareholders, activists, and consumer groups played an important role for companies to adopt labour standards. Standards refer with corporate code standard mention International by ILO (International Labour Organization) to the extent to which is explicitly or implicitly can either be done through the inclusion of the basic provisions of international organizations in the corporate codes standards (Van Tulder Kolk, 2002). Similarly, there were also greater pressures from governmental campaigns all over the world. Where in European countries, some of the government such as France were be advocating for greater attention to human rights in the sphere of international business. Along with such efforts from various countries, the European Commission had been carried out a research in the international subcontracting companies about the social aspect of textile clothing and footwear firms. Aiming to the extent in which the researches discover that these multinational companies adhered to human rights in their operations (Kolk and van Tulder, 2002). In 1996, President Clinton Launched the White House Apparel Industry on Workplace Standard (AIP), he launched the AIP after seen the violation of human rights in the clothing industries by multinational companies, the aim was to established standards and to ensure apparel and footwear were not made under sweatshops working conditions (Meyer and De Wit (2004). Due to the human right violation in textiles sectors precisely in the sweatshops conditions, The Clinton Administration established campaign against sweatshops in the clothing Textiles worked under sweatshops conditions in USA, the campaign was called No-Sweat and was introduced for the purpose fighting against sweatshops in which resulted to establishment of the Trendsetter List of companies in the Textiles Clothing and Footwear Factories. The campaign was aiming for the Clothing Textiles Factories to respect human rights and labour legislation in the production and marketing activities of the clothing and footwear in general, to make sure that both the clothing companies and their subcontracting companies as are, they must significant put into consideration and respecting these rights. The lack of the about not respect the rights, a number of labour legislation and human rights had been identified by the Department of Labour in the Textiles Clothing and Footwear factories, in subcontracting in particular of apparel production, facing the multinational companies, that was exploitation with a number of cases involving in human rights particularly the immigrant workers in sweatshops established on the United States regional, took steps to clean up the sectors. However, United States boundary put up on the sweatshops issue, took up steps to clean the sector (Elliot and Freeman (2001). Specifically in the area of child labour and, for example, the United States Government took a number of steps to alleviate the problems. Between 1994 and 1996 because of the important of the issue, the Bureau of International Labour affairs managed to organize three public gatherings to have views on child labour. These public platforms brought together a number of activists and the public at large to discuss various issues related to child labour. Specifically, they focused on the worst conditions of child abuse in the less developed countries that they exported products to the United States. A number of resolutions were made but all geared to put to end the merciless violations of human rights and child labour (Elliot and Freeman (2001). The Association of the Clothing Manufacturers of the USA and the Amalgamated Clothing Textiles Workers Union in 1995 agreed to have a National Branch for Collective Agreement. The agreement among other things included: the need to establish minimum standards regarding number of working hours, wages, and working conditions. In addition, the agreement also focused on a number of issues ranging from non-intolerance forced work, child employee, liberty of association, to occupational safety and health (White and Taft, 2004; and Giwerth, 1982). This was a trend in many parts of the world. Several national and multinational organizations and trade unions endeavoured to draw attention to respect human rights. Pressures from activities increased the formation of human rights association and in 1998 established of the Fair Labour Associations (FLA) to the overseas compliance, the Workplace Code of Conduct. The goals of Fair Labour Association (FLA) were for the companies required to monitor t heir own factories and their subcontractors to make sure there is compliance of the Code of Conduct in the textile factories (Meyer and De Wit, 2004). Klein (1999) pointed out that many firms had invested heavily in branding and reputation capital and therefore any high profile scandals and political pressures could tarnish their reputation. In the face of such pressure, it was not surprising that firms adopted voluntary standards to try to deflect criticism, pre-empt regulation, and signal their social responsibility to consumers and investors. The important factor in adoption of voluntary labour codes was to uphold public image which the company wanted to project to its customers, employees, suppliers and shareholders. Thus the clothing retailers public image became important than anything else. These multinational companies worked hard to clear their images and had no option but to promote codes of conduct. The public image was particularly important because it determined the extent to which the companys products could be bought. Given the rapidly growing competition in the global markets and communication in technology, it was essential for a company to improve the working conditions in its operations and retain its good image to customers (Kolk and van 2002). The United Nation Universal Declaration of Human Rights was adopted by the General Assembly in 1948 (Schulz, 2001). The declaration proclaims on the issue of the slavery or servitude subjected to inhuman or degrading treatment or punishment put them into detention or exile and arbitrary arrest subjected. Moreover the declaration goes on to proclaim that everyone needs to live in liberty and everyone have a right to security, everyone have equal protection against any discrimination, and everyone have a the rights for work, everyone have free choice of employment, to just and favourable conditions of work, and to protection against unemployment as a result of discrimination has entitled. The international Labour organization (ILO) was created in 1919 as a tripartite organization of government, business, and union representatives from 174 nations. Since then, it has adopted 177 lengthy labour conventions or standards. Seven of these are considered fundamental human rights, addressing issues such as forced labour, equal pay for men and women, discrimination in the workplace, and the minimum age for employment (White and Taft, 2004). Organizations such as Amnesty International have specified clearly workers right such as freedom of association, the right of collective bargaining and working conditions and soon. The organization is for Human Rights and as Watch Report on human rights well being all around the world and strives to ensure the protection and progression of them as well. Amnesty International is an organization whose vision was derived from the United Nations Universal Declaration of Human Rights, was adopted by the General Assembly Resolution in 1948. It is adopted for the reasons monitoring the protection and standard of human rights as were established in thirty articles that later set the primary foundation to the policies and standard that carried out by NGOs and other agencies with the purpose to protect and promote fundamental rights (www.amnesty.org). The Social Accountability International (SAI), established in 1977, is an organization that for promotes human rights for workers around the world. Its SA8000 standards are obtained from the Universal Declaration of Human Rights and the International Labour Organisation (ILO) convention. The standards are designed to make workplace more humane and also to offer more benefits for the companies and its employees. Employees that work under SA8000 standards they have profit from the enhanced opportunity of collective bargaining and to organize trade unions. Also, employees become more educated about their rights which in turn, commits to have assurance for a better work environment. The companies as whole, benefits from the SA8000 guidelines because it strengthens and put company values into action and enhances the company reputation (Krage, 2007). The International Labour Organization Declaration (ILO) on the Fundamental Principles at work were adopted in 1998 and was an expression of commitment by governments, employers and workers organizations to uphold basic human rights (Kolk et al 2001).The Declaration covers four areas; liberty of the trade union and the right to collective bargaining, elimination of forced and compulsory work, Abolition of child employee and elimination of discrimination of human rights. The Voluntary Principles on Security and Human Rights were developed by governments of the U.S. UK, Norway, Netherlands and NGOs, who all were have the common interest in human rights and corporate social responsibility (voluntaryprinciple.org). There were six principles that all participants agents agreed on in order to promote and protect human rights in multinational companies. The six Voluntary Principle as stated on their website are as follows: acknowledge that security is a fundamental need; Understanding that governments have the primary responsibility to promote and protect human rights; Particularly those set forth in the Universal Declaration of Human rights; Emphasizing the importance of safeguarding the integrity of company personnel and property; Taking note of the effect of those companies, activities and decisions affect the local community; Understanding that useful, credible information is a major component of security and human rights. The Global Reporting Initiative (GRI) is multi-stakeholder governed institution that provides global standards for the promotion of sustainable development. Judy Henderson, immediate past-Chair, Board of Directors says The GRI is a unique, multi-stakeholder organization founded on the conviction consistent, regular and comparable reporting, provides transparency and can be a powerful catalyst to improve performance (globalreporting.org). There are nearly 1000 organization in over 60 countries that have established their involvement with the GRI reporting framework. This reporting framework guides corporations and organizations on the reporting their sustainability performance to promote company progression and improvement in all area of business. The reporting guidelines contain principles, guidance, and standard disclosures that formulate a structure that cooperating organizations can voluntarily adopt (www.globalreporting.org). The UNs Global Compact is a purely voluntary guide to promoting responsible corporate citizenship. Its two main objectives are: to mainstream its ten (10) principles in business activities around the world and initiate actions to support United Nations goals (www.unglobalcompact.org) 2.1.5 Adoption of Voluntary Labour Standards (Codes of Conduct) by Multinational Companies and their Impact The rapid diffusion of labour standards (codes of conduct) stems from the response to external pressures (actual or threatened) from media, activists, government, and consumers (Shaw, 1999). In a like manner, (H