This essay analyses the success of voluntary policies implemented by multinational companies operating in the manufacturing sector that aim to tackle issues and challenges arising out of poor labour practices and human rights infringements. The first section focuses on the success of policies aiming to improve working conditions in the fashion supply chain while the second section examines the performance of Coca-Cola’s and Nestlé’s human rights policies and their effects on local communities.
Both sections conclude with the realization, that the success of voluntary policies is often hampered by their inability to tackle issues holistically, mainly caused by the lack of company commitment in favour of profit maximization.
The booming world economy and the explosion in economic prosperity and wealth in some countries were accompanied by negative impacts on the environment and society in others. Weak law enforcement and corruption hinder governments to sufficiently tackle the issues arising out of global growth. With their gain of influence in the global sphere, transnational corporations and large businesses are increasingly challenged to adopt adequate corporate governance mechanisms, particularly where government authorities have forsaken. Guidelines such as the ISO26000 for the Social Responsibility of Businesses and Organizations support the implementation of policies for best practice and offer guidance on issues in the context of organizational governance, human rights, labour practices, the environment, fair operating practices, consumer issues and community involvement and development.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Labour Practices
- Creating a Decent Work Environment for Employees
- Codes of Conduct and Their Influence on Workers
- The Importance of Supply Chain Monitoring and Management
- Limitations to Codes of Conduct
- Human Rights
- Violations and the Responsibility of Businesses
- The Impact of Nestlé's Efforts to Tackle Child Labour in Its Cocoa Supply Chain
- The Seeming and the Real of Coca Cola's Human Rights Policy on Water Scarcity
- Successful Or Not?
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the success of voluntary policies implemented by multinational companies (MNCs) in the manufacturing sector aimed at tackling issues and challenges arising from poor labour practices and human rights infringements. The essay analyzes the effectiveness of policies designed to improve working conditions in the fashion supply chain and evaluates the performance of Coca-Cola's and Nestlé's human rights policies and their impact on local communities.
- The success of voluntary policies in addressing labour rights and human rights issues in global supply chains.
- The role of codes of conduct in promoting ethical and responsible business practices.
- The influence of multinational corporations on human rights and working conditions in developing countries.
- The challenges and limitations of implementing and enforcing voluntary corporate social responsibility (CSR) initiatives.
- The importance of addressing the underlying systemic issues that contribute to human rights violations and poor labour practices.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the context of global economic growth and its accompanying negative impacts on the environment and society. It highlights the role of transnational corporations and their increasing responsibility to implement corporate governance mechanisms in the absence of adequate government oversight. The chapter also discusses the relevance of international guidelines, such as the ISO26000, in promoting ethical and responsible business practices.
- Labour Practices: This section explores the concept of labour rights and their connection to human rights violations. It examines the impact of globalization on working conditions and highlights the challenges of ensuring decent work environments for employees, particularly in the context of outsourcing and the exploitation of regional competitive advantages. The chapter then delves into the use of codes of conduct as a tool for addressing labour rights issues within supply chains.
- Creating a Decent Work Environment for Employees: This subsection discusses the specific issues related to creating a decent work environment for employees, including working hours, wages, workplace conditions, health and safety, and paid leave. It highlights the role of companies in ensuring fair and ethical treatment of workers within their supply chains and the challenges of achieving living wages and decent working conditions in countries with lower wage levels.
- Codes of Conduct and Their Influence on Workers: This section examines the use of codes of conduct as a tool for addressing labour rights issues within the fast fashion industry. It uses the example of H&M and analyzes the company's efforts to implement a Fair Living Wage Strategy. The chapter highlights the discrepancies between company claims and the realities faced by workers in H&M's supply chains, raising questions about the effectiveness of voluntary codes of conduct in improving working conditions.
- The Importance of Supply Chain Monitoring and Management: This subsection delves into the importance of supply chain monitoring and management for ensuring ethical and responsible business practices. It emphasizes the need for companies to go beyond simply implementing codes of conduct and to actively monitor and manage their supply chains to ensure compliance with ethical standards.
- Limitations to Codes of Conduct: This section explores the limitations of relying solely on codes of conduct for addressing labour rights and human rights issues. It highlights the challenges of enforcement, the potential for loopholes, and the need for a more holistic approach that addresses the underlying systemic issues contributing to human rights violations.
- Human Rights: This section examines the responsibility of businesses in upholding human rights and explores the impact of multinational corporations on local communities. It focuses on the efforts of Nestlé and Coca-Cola to address human rights concerns within their supply chains.
- Violations and the Responsibility of Businesses: This subsection discusses the various ways in which businesses can be involved in human rights violations, including through their own operations or through their supply chains. It highlights the need for companies to take a proactive approach to preventing and addressing human rights concerns.
- The Impact of Nestlé's Efforts to Tackle Child Labour in Its Cocoa Supply Chain: This subsection examines the efforts of Nestlé to address the issue of child labour in its cocoa supply chain. It explores the challenges faced by the company and the effectiveness of its initiatives in reducing child labour and promoting fair working conditions in its cocoa-producing regions.
- The Seeming and the Real of Coca Cola's Human Rights Policy on Water Scarcity: This section analyzes Coca-Cola's human rights policy on water scarcity and examines the company's efforts to address water management issues in its operations. It explores the challenges of ensuring sustainable water management in regions facing water stress and evaluates the effectiveness of Coca-Cola's policy in promoting responsible water usage.
Schlüsselwörter (Keywords)
This work focuses on the success of voluntary policies implemented by multinational companies to address labour practices and human rights issues. Key themes include corporate social responsibility (CSR), codes of conduct, supply chain management, human rights violations, labour rights, living wages, decent work, child labour, water scarcity, and the impact of multinational corporations on local communities. It also examines the limitations of voluntary initiatives and explores the need for systemic changes to address the underlying causes of human rights violations and poor labour practices.
- Quote paper
- Giulia Isabelle Neuhaus (Author), 2019, Cases in CSR. Success of Companies Voluntarily Implementing Issues Related to Labour Practices and Human Rights, Munich, GRIN Verlag, https://www.grin.com/document/991979
