CASE STUDY-1: CAN KNIGHTS APPAREL SATISFY ALL OF ITS STAKEHOLDERS AND SURVIVE? 1. Who are the primary stakeholders of Knights Apparel? Stakeholders mentioned in the case study include the following:
• Joe Bozich, CEO of the privately held firm.
• Spartanburg, SC: the city where the firm is based.
• The 30 factories worldwide with which the firm has contracts.
• Scott Nova, Executive Director of a consortium of 186 universities.
• The United Students Against Sweatshops.
• Alta Garcia, Dominican Republic: home of the firm’s model factory.
• The 120 workers in the model factory.
• The 1200 displaced workers in the Korean owned factory that produced products for the firm’s competitors.
• The firm’s customers.
• Retailers and universities that make a special effort to promote the firms products. 2. For each stakeholder group, what are their major concerns?
The case study clearly identified the concern of some stakeholders for the treatment of apparel workers. Although the concerns of other stakeholders were not clearly identified, it is likely that they may have economic concerns of their own and not just that of the workers.
• Stakeholders concerned about treatment of apparel workers include the following.
- Joe Bosich, CEO: sought a higher purpose for the privately held firm.
- Scott Nova and the universities that he represented.
- The United Students Against Sweatshops.
- Those customers who will to pay more so that the factory will succeed.
- The retailers and universities making a special effort for the firm.
• Stakeholders whose concerns likely involve their own well-being include the following:
- Spartanburg, SC that receives tax revenue from the firm.
- The worldwide factories that produce for the firm and who may feel threatened if the model factory succeeds.
- The competition that would be threatened if the model factory succeeds.
- Alta Gracia in the Dominican Republic that could benefit from the infusion of additional income into the community.
- The 120 workers in the model factory who have far better pay and working conditions than most others in their community.
- Those among the 1200 displaced workers who have not found employment elsewhere (or in the model factory) but who would like to see the factory succeed and expand its workforce.
- Those customers who might like the product and the firm’s practices but not the prices. 3. Describe the key roles and responsibilities of HR professionals at Knight Apparel.
Although the case did not directly discuss the roles and responsibilities of HR professionals at the firm, typically such professionals are concerned with compensation programs and working conditions.
The case focused on the firm’s efforts to develop programs and conditions at its model factory in the Dominican Republic that were better than those prevailing elsewhere in that country. 4. Do you think this factory will succeed and become a model for competitors, such as Nike and Adidas?
Why, or why not? Opinions will vary.
Some may think that the factory will succeed due to the marketing support received from universities, students, and retailers such as Barnes and Noble.
Others may feel that such societal concern on the part of people and organizations may not be sufficient to overcome the need of people to use their limited funds for less expensive products.