...Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat? Benjamin Powell David Skarbek Independent Institute Working Paper Number 53 September 27, 2004 100 Swan Way, Oakland, CA 94621-1428 • 510-632-1366 • Fax: 510-568-6040 • Email: info@independent.org • http://www.independent.org Sweatshops and Third World Living Standards: Are the Jobs Worth the Sweat? Benjamin Powell and David Skarbek• Department of Economics San Jose State University San Jose, CA 95192-0114 benjamin.powell@sjsu.edu ABSTRACT Many studies have shown that multinational firms pay more than domestic firms in Third World countries. Economists critical of sweatshops have responded that multinational firms’ wage data do not address whether sweatshop jobs are above average because many of these jobs are with domestic subcontractors. In this paper we compare apparel industry wages and the wages of individual firms accused of being sweatshops to measures of the standard of living in Third World economies. We find that most sweatshop jobs provide an above average standard of living for their workers. Benjamin Powell is an Assistant Professor of Economics at San Jose State University and the Director of the Center for the Study of Entrepreneurial Innovation at the Independent Institute. David Skarbek is an economics major at San Jose State University and intern at the Independent Institute. The authors thank Jeffery Hummel, Charles Murray, Larry Pratt and Edward Stringham for helpful comments...
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...International Law and Global Market Name Bus 311 Business Law Instructor Date In this research paper, I will talk about International Laws and the Global Market. We will define International laws and its power. Questions like why are there international laws also will be answer. Who creates International laws and who enforces them? Are they really necessary? All this questions will be answer and explained. We will also talk about the Global Market. The effects that international laws have on the Global market will also be discussed. What constitute the Global Market? Who controls it and how do we keep it from collapsing? America as a country plays a big part on the Global Market; we will discuss the effect of our economy in it. Sources of International Laws * What is International Law? We all know that the law exist and can be applied to everyone. If a person enters into a legal agreement and that agreement is broken then the party that is breaking the agreement can be sued. There are penalties or punishment for anyone who breaks the laws that our judicial system has established. It can definitely be easier to deal with problems and laws when they are in our own country. It is a reality that our country deals with other countries when it comes to buying products. It is also a reality that we can’t just disregard other countries laws. When it comes to dealing with two countries involve, we need international laws. International laws are the laws that we...
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...6. Social Responsibility & NGO’s Gursharn Dhugga In this report you will learn about the corporate social responsibility of Peru, business ethics, ethical issues in international business and Non-Governmental Organizations in Peru. Corporate Social Responsibility & CSR in Global Companies Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner. Corporate Social Responsibility in the Mining Sector in Peru seeks to take a first step towards meaningful dialogue about CSR among the different actors involved to help civil society obtain the highest benefits from CSR policies and actions implemented by government and corporations. A legislative proposal on the topic of corporate social responsibility was introduced in Peru in 2005, but it was never implemented and thus there is still no legislation governing CSR in Peru. Small businesses who deal domestically tend to place much less emphasis on operating responsibly than the major companies who rely mainly on exports. Most CSR initiative in Peru seems to come from international organizations and intermediaries; the Swiss AVINA, Kellog, Interamerican, and Ford Foundations are all examples of the attempt to raise CSR awareness. Benefits of CSR Peru’s rapid economic expansion has helped to reduce the national poverty rate by almost 15%, but 44.5% of the population still live below the poverty line....
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...UNETHICAL BUSINESS PRACTICES OF WALLMART AND NIKE INTRODUCTION Wal-Mart Stores, Inc., branded as Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Walmart. It is also one of the world’s most valuable companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. In the late 1980s and early 1990s the company rose from a regional to national giant. By 1988, Wal-Mart was the most profitable retailer in the US and by October 1989 it had become the largest in terms of revenue. Geographically limited to the South and Lower Midwest up to the mid 1980s,...
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...Globalisation describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of communication and exchange. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political, and biological factors. The term can also refer to the transnational circulation of ideas, languages, or popular culture. Definitions An early description of globalization was penned by the American entrepreneur-turned-minister Charles Taze Russell who coined the term 'corporate giants' in 1897. However, it was not until the 1960s that the term began to be widely used by economists and other social scientists. It had achieved widespread use in the mainstream press by the later half of the 1980s. Since its inception, the concept of globalization has inspired numerous competing definitions and interpretations. The United Nations ESCWA has written that globalization "is a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable...
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...16 Works Cited Page 3 Page 18 Human Trafficking 3 Executive Summary: This paper was written to help educate people on the horrors of this extremely profitable organized crime. Human trafficking is defined as the recruitment, transporting, or harboring of people for the purposes of slavery, forced labor, or sexual exploitation. There are two different types of human trafficking: labor trafficking and sex trafficking. Sex trafficking is the sale of women and children for prostitution and other forms of sexual exploitation. Sex trafficking is a lot more common than labor trafficking; labor trafficking is recruiting, transporting, or obtaining a person for labor or services. Human trafficking is a serious problem all around the world. In this paper I focused on trafficking in India, China, and the United States....
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...standards tend to make the headlines when their actual business practices are contrary to those standards. Chipotle, one of the fastest growing chain restaurants, is no stranger to this controversy. The company has made great strides in offering “Food with Integrity” yet it still lacks in credibility. This paper will analyze Chipotle’s CSR and how its standards have led many to question the company’s core values. Chipotle's CSR: Mission or Marketing? The heightened media attention on CSR is at least partially in response to society’s interest in socially conscious businesses. Consumers are willing to pay a premium price for environmentally-friendly brands. At the same time, there is much skepticism as to whether companies are intentionally or accidently misleading consumers. Chipotle, one of the fastest growing fast-casual restaurant chains in the world, declares it serves “Food with Integrity”. What does that mean? The company’s reputation has taken some hits in recent years due to lack of transparency. Lessons have been learned along the way yet there is still a credibility gap. Many wonder if Chipotle is telling the public a feel-good story or the truth. This paper will take a look at the company’s CSR: intent vs. execution vs. depiction. Genetically Modified Organisms GMO’s are plants or animals who have been inserted with a gene from an unrelated species in order to take on specific characteristics (Lee, 2014, p. 1). The push to label GMOs in ingredients has become...
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... | | | | |Date of Submission: May 28, 2013 | | |Title of Assignment: Poverty and Pollution | | |Case Study | | CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in this paper. I have also cited any sources from which I used data,...
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...for the Sloan School of Management’s 50th Anniversary celebration and should be read in conjunction with “A Note on Corporate Citizenship.” This case was prepared with the active involvement and research assistance of the following Sloan MBA students: Vanessa Chammah, Brian Curtis, Elizabeth Fosnight, Archana Kalegaonkar, and Adnan Qadir. I would also like to thank Miguel Alexander, Maria Eitel, Dusty Kidd, Joseph Tomasselli and Dara O’Rourke for their helpful comments and assistance during this project. 1 1. Introduction How should global corporations behave in the new international world order? What constitutes good corporate citizenship in a world where the stakeholders are diverse and dispersed around the globe and where no clear or consensual rules and standards exist? These questions shape the behavior of most multinational corporations (MNCs) today. Although multinationals are eager to pursue the opportunities of increased global integration, they are increasingly aware of the reactions which their strategies induce – both at home and abroad. Thus, they tread warily, lacking clear and agreed-upon definitions of good corporate citizenship. Through a case study of Nike, Inc. – a company that has come to symbolize both the benefits and the risks inherent in globalization – this paper examines the various difficulties and complexities companies face as they seek to balance both company performance and good corporate citizenship in today’s global world. 1. The Athletic Footwear...
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...Running Head: Nike, Inc. Nike, Inc. Case Study Adelaide A. Odoteye FIN 586 – Dr. Cullers Fall 2006 The brand name “Nike” is one of the most readily recognized around the globe. The name is synonymous with high-quality athletic shoes, apparel, and accessories in the minds of many people worldwide. Perhaps it is the ubiquitous Nike “swoosh” and compelling marketing that commands attention. Or maybe it is the association between the brand name and its famous endorsers, such as Tiger Woods and Michael Jordan. Alternatively, it may be Nike’s cutting-edge sporting vision and technology that entrances multitudes of consumers. Quite conceivably, it is a combination of these factors that has propelled Nike to the top of its industry. However, not all of Nike’s story is ideal. In recent years, the company has faced criticism in connection with its use of contract labor in developing nations. The purpose of this case is to provide an understanding of the company’s background, its general business strategy, and its use of contract labor. The Athletic Apparel and Footwear Industry The athletic apparel and footwear industry experienced steady growth for more than two decades, beginning in the early 1980’s. For example, in the U.S.A. alone, consumer spending on athletic footwear increased by 10 percent during the first six months of 2005 (Quinn, 2006). Consumers were not just professional athletes, but ordinary men, women, and...
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...MEDIA EDUCATION FOUNDATION STUDY GUIDE NO LOGO BRANDS, GLOBALIZATION, RESISTANCE WRITTEN BY JEREMY EARP & DANIELLE DEVEREAUX Challenging media CONTENTS NO LOGO BRANDS, GLOBALIZATION, RESISTANCE NOTE TO TEACHERS.............................................................................................................................................................................pg. 03 THE MEDIA LITERACY CIRCLE OF EMPOWERMENT....................................................................................................................04 OVERVIEW.........................................................................................................................................................................................................05 PRE-VIEWING EXERCISES..........................................................................................................................................................................06 INTRODUCTION Key Points..........................................................................................................................................................................................................07 Questions for Discussion & Writing.....................................................................................................................................................07 NO SPACE: BRANDED WORLD Key Points......................................................................................
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...TEACHING MODULE THE FUTURE OF FASHION DECEMBER 2010 This teaching module was independently written by the Aspen Institute Business and Society Program with the generous support of THE FUTURE OF FASHION: SUSTAINABILITY THROUGH THE LENS OF THE FASHION INDUSTRY* By: Jennifer Johnson & Gina Wu Companies across all industries are facing the challenges of business sustainability, debating how best to address these risky issues while also embracing their opportunities for competitive advantage. This Teaching Module uses the context of the fashion industry to discuss topics that are shaping the future of all industries. These topics include sustainable resource management, the challenges and opportunities of global growth, workforce management, and the role of ethical consumption in business. The fashion industry offers a compelling case study for exploring business sustainability issues. In the fashion industry, as in many industries, success requires highly developed sourcing, design, manufacturing, and marketing chains. Increasingly, success also means incorporating sustainability in resource and labor management, as firms realize that long-term corporate survival will depend on new ways of doing business. Climate change, resource challenges, new technologies and dramatic shifts in the global economy are already impacting the industry. The nexus of these concerns allows students to explore sustainability challenges while providing a framework for discussing new business...
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...| | CHILD LABOUR INTRODUCTION Child labour (U.S. child labor) refers to the employment of children at regular and sustained labour. This practice is considered exploitative by many international organizations and is illegal in many countries. Child labour was utilized to varying extents through most of history, but entered public dispute with the advent of universal schooling, with changes in working conditions during the industrial revolution, and with the emergence of the concepts of workers' and children's rights. In many developed countries, it is considered inappropriate or exploitative if a child below a certain age works (excluding household chores or school-related work). An employer is usually not permitted to hire a child below a certain minimum age. This minimum age depends on the country and the type of work involved. States ratifying the Minimum Age Convention adopted by the International Labour Organization in 1973, have adopted minimum ages varying from 14 to 16. Child labor laws in the United States set the minimum age to work in an establishment without restrictions and without parents' consent at age 16. * | Historical During the Industrial Revolution, children as young as four were employed in production factories with dangerous, and often fatal, working conditions. Based on this understanding of the use of children as labourers, it is now considered by wealthy countries to be a human rights violation, and is outlawed, while...
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...| | | | | | This article appears in the Nov. 14, 2003 issue of Executive Intelligence Review. Wal-Mart Is Not a Business, It's an Economic Diseaseby Richard Freeman and Arthur Ticknor(See also ``Wal-Mart Collapses U.S. Cities and Towns,'' Nov. 14, 2003; ``Wal-Mart Eats More Manufacturers, Jobs,'' Nov. 21, 2003; Wal-Mart Family Trust--The Real Beast of Bentonville, Ark., Jan. 23, 2004.)The Wal-Mart department store chain, which employs 1.3 million people at 4,700 stores worldwide, and in 2002 became the largest corporation in the world, is levelling economies of the U.S., industrial nations, and the Third World.Wal-Mart is a driving force behind the decadent Imperial Roman model of the United States. Unable any longer to reproduce its own population's existence through its own physical economy, the United States has, for the past two decades, used an over-valued dollar to suck in physical goods from around the globe for its survival. Wal-Mart is both the public face and working sinews of that policy. It brings in cheap pants from Bangladesh, cheap shirts from China, cheap food from Mexico, etc. Workers who produce these things are paid next to nothing.Not since the days of the British East India Company as the cornerstone of the British imperial system, has one single corporate entity been responsible for so much misery. At the core of its policy, Wal-Mart demands of its suppliers that they sell goods to Wal-Mart at such a low price, that they can only do so by outsourcing...
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...Table of Content 1. Introduction .................................................................................................. 1 2. Causes of the Booming Sex Industry .......................................................... 2 3. Economic implications of Sex Industry...................................................... 3 3.1. Thailand ................................................................................................. 3 3.2. Philippines .............................................................................................. 5 4. Social implications of Sex Industry ............................................................ 8 4.1. Moral Implications ................................................................................ 8 4.2. Child Prostitution .................................................................................. 9 4.3. Sex Trafficking and Slavery ............................................................... 10 4.4. Health and Cost Issues ........................................................................ 11 5. Recommendations ...................................................................................... 14 6. Conclusion ................................................................................................... 17 7. References ................................................................................................... 18 1. Introduction The sex industry involves the sale of sex related...
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