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Levi Strauss & Co. a nd China
From: Case Studies in Business Ethics 5th ed. Al Gini (pp. 294-298)
The market that is the people's Republic of China consists of more than 1 billion consumers and offers low production costs, but its human rights violations have long been condemned by international bodies. In 1993 Levi Strauss & Co. (LS & Co.) faced one of its more difficult decisions in a long corporate history. Would it continue to conduct business in this enormously promising market or honor its relatively high ethical standards and withdraw?
Levi Strauss: History and Ethical Stance
Founded in the United States in 1873, LS&Co. enjoyed consistent domestic growth for generations and began overseas operations during the 1940s. The company became the world's largest clothing manufacturer in 1977 and achieved $2 billion in sales by the end of the decade. Having offered stock to the public during the 1970s to raise needed capital, management decided fourteen years later to reprivatize in a $2 billion leveraged buyout, the largest such transaction to date. Management's reasons included its heightened ability to "focus attention on long-tem interests (and)… to ensure that the company continues to respect and implement its important values and traditions." By 1993, LS&Co. Produced merchandise in 24 countries and sold in 60.
LS&Co. has been a leader among U.S.-based corporations in recognizing the importance of business ethics and community relationships. Two 1987 documents developed by management summarize the unique values operating at LS&Co. The Mission Statement… affirms the importance of ethics and social responsibility, while the Aspirations Statement… lists the values intended to guide both individual and corporate decisions.
CEO Robert Haas frequently explains the importance of the Aspirations Statement as a way employees can realize

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