Essay based on the issue of sweatshop labour conditions in the global supply factory system.

It is no secret that millions, if not billions of people around the world suffer dangerous and abusive work conditions in the global supply factory system. Since the emergence of the global economy, multi national corporations have been able to reap in large profits while keeping their prices low for consumers, in part, by taking advantage of cheap outsourced labour. The dark side of the global market is the severe exploitation of sweatshop labour conditions such as, child labour, poor health and safety standards, indentured servitude, sexual harassment and abuse, excessive overtime and under compensation. National and International labour standards do exist, the problem is that many countries where global supplier factories are located are either unable or unwilling to enforce labour laws for one reason or another. Thus, because governments in certain countries around the world do not enforce decent labour standards, multi nationals have been able to take advantage of cheap labour without many repercussions. Corporate citizenship or social responsibility has become a very important business practice for many companies. Civil society groups and consumers are now becoming much more adamant on the issue of corporate social responsibility and global fair labour.

Multi national corporations, in the past, have been focused only on one objective, profit. With the increased pressure from consumers for business transactions to be more transparent, many companies have been forced to become more corporately responsible with their business practices. Many companies around the world have tried to become socially responsible; they have implemented detailed codes of conduct and factory on-site monitoring as well as factory system auditing which includes a health management and safety audit programme. One such business is Nike, who, after their sweatshop scandal came to light, noticed a detrimental decrease in their sales around the world, as well as a big hit to their reputation. Nike has developed a system of comprehensive monitoring and remediation. This includes a health management and safety audit programme and a significant global labour practice team that visits factories on an everyday basis and conducts training and awareness initiatives.

In response to the efforts of many companies around the world to implement these techniques, there are still some major issues. Factories, particularly in China, have simply developed more sophisticated methods of concealing labour code violations. Factories have reacted to company codes of conduct and internal compliance monitoring by adopting new approaches of deception. In many cases, companies are unaware or wilfully ignorant to the amount and scale of abuses. The reality is that multi national corporations are not designed to nor equipped to function as enforcement agencies.

Civil society organisations also known as non-governmental organisations are critical actors in the advancement of universal values around human rights, the environment, labour standards and anti-corruption. As global market integration has advanced, their role has gained particular importance in aligning economic activities with social and environmental priorities. Over the past century, there has been a rapid increase in civil society groups globally. They are forming strong organisations that put pressure on many issues regarding global labour and the importance of fairness. They are a precious resource for many multinational corporations because they can provide independent social audits, founded upon expert knowledge of labour issues, including local, national and international labour laws. There are many non-government organisations that have started up global programmes to combat human rights abuses and other pressing issues. One such NGO is the international programme on the elimination of child labour. In the programme to eliminate child labour in the brick sector in Huachipa, near Lima, IPEC is working with other NGOs including AIDECA, which has experience in the field of development, focusing on social and technological issues and forging strong public-private alliances, to provide a new economic model for families making bricks. AIDECA has developed a plan for a new kind of kiln and production system that combines efficiency with ease of operation, low maintenance costs and low energy consumption. A new community NGO has been established, managed by the beneficiaries, for community governance and management of a "Social Development Brick Factory," for families whose children are not allowed to work. Fifty per cent of profits are reinvested and the other half goes to social and educational projects. AIDECA has established programmes in governance and decision making to raise beneficiaries' capacity to run the brickworks. Other NGOs are also involved in education and monitoring of school attendance.

There is a need for governments to come back into the picture because self-implemented codes, while attractive to multinationals, are ineffective for that same reason- they are self-implemented rather than government enforced. Although transforming the codes into binding law is not politically possible at present, government involvement is the only way that a voluntary code of conduct will survive and be effective. Government involvement can include, being active and promoting better corporate conduct, and encouraging partnerships among multinationals and civil society groups. The problem is that governments are not able to legislate labour markets because globalisation is outstripping the power of governments. This is because private actors are assuming state functions. They are moving this way because consumers are pushing them. The most powerful force is when consumers demand social responsibility from corporations around the world.

Civil society groups, businesses and governments all have distinctive resources and competencies as well as weaknesses. For example, businesses have access to capital, specialized technical knowledge, networks of commercial relationships and the management skills to get projects completed on time and on a budget. On the other hand, businesses tend to disregard the impacts of their actions, especially in the long term. Government agencies have knowledge of public policy, an ability to enforce rules, and revenue from taxation, but are often inflexible, slow to mobilize and poorly coordinated. NGOs often enjoy strong community knowledge, volunteer assets, and inspirational leaders, but many lack financial resources and technical skill, and many suffer from a narrow, parochial focus. Many businesses have realized that these differences across sectors can be a resource to be exploited. In this view alliances among organisations from the three sectors, collaborative partnerships, can draw on the unique capabilities of each and overcome particular weaknesses that each has.

The Fair Labour Association partners with international unions and other civil society organisations around the world to address complex labour issues. When workers are at risk, local organisations are poised to act swiftly and have the necessary relationships with key players in the region who need to be involved in finding solutions. The FLA creates a safe space for civil society groups, universities, and multinational corporations to come together and find solutions for pressing labour issues. The FLA is just one of the programmes out there that incorporates multinationals, NGOs and government agencies to finding solutions for global labor and other pressing issues.

Civil society groups are a precious resource for multi national corporations because they can provide independent social audits, founded upon expert knowledge of labour issues, including local, national and international labour laws, and can also serve to hold companies accountable to their own professed principles of corporate citizenship. Involving non-governmental organisations encourages more harmonized workplace standards, such as uniform code of conduct, which may be implemented to streamline the monitoring process and increase effectiveness and efficiency. One of the most powerful vehicles we have for insuring the implementation for labour standards in global supply chains is the multi national corporation, and we can avoid the danger of privatizing labour law enforcement by ensuring that those enterprises act in partnership with public and other private stakeholders in a transparent way to improve the conditions in the factories where goods are made.

Civil society groups are a precious resource for multi national corporations because they can provide independent social audits, founded upon expert knowledge of labour issues, including local, national and international labour laws, and can also serve to hold companies accountable to their own professed principles of corporate citizenship. Involving non-governmental organisations encourages more harmonized workplace standards, such as uniform code of conduct, which may be implemented to streamline the monitoring process and increase effectiveness and efficiency. One of the most powerful vehicles we have for insuring the implementation for labour standards in global supply chains is the multi national corporation, and we can avoid the danger of privatizing labour law enforcement by ensuring that those enterprises act in partnership with public and other private stakeholders in a transparent way to improve the conditions in the factories where goods are made.

A possible solution to the issue of factory deception is for companies to respond by seeking collaborative partnerships with outside organisations.