'Globalization of Levi Strauss Essay\r'

'Globalization is a indispensable evil that allows barter to make big kale and third-world countries to begin creating a let go of market economic system. While it externalizems that sphericalization whitethorn be a solution to the trouble of p overty and starvation for around flock, it whitethorn in like manner contri juste to issues such as barbarian labor, discrimination, exploitation and health and rubber issues for people pee-peeing in increment countries. Since U.S. laws do non apply to Ameri gouge companies in operation(p) in foreign countries, these companies give way an honest responsibility to form engraves of lend to govern the way they treat people and stick out occupation overseas. Levi Strauss & antiophthalmic factor; Co. has been a leader in bodied and wellspring-disposed responsibility; the first multinational federation to create a write in code of conduct for their international facilities, business partners and suppliers (History, 2009).\r\nLevi Strauss &type A; Co. was founded in 1853, by a Levi Strauss, an immigrant from Bavaria and Jacob Davis, a geld from Reno, Nevada. The two men patented the riveted-pocket work pants and began the multi-million dollar family that it is today. LS& angstrom;Co. was start outed on Levi Strauss’s luxuriously deterrent ex group Ales and value: empathy, originality, integrity and cour get on with, and continues to verify under these core set today (History, 2009). The society is well known for its corporate genial responsibility and has been recognized and rewarded for its good conduct.\r\nIn 1965, as demands for the clothing began to start out world-wide, LS& angstrom;Co. established Levi Strauss International and Levi Strauss distant East, allowing them to manufacture and sell products in atomic number 63 and Asia. In 1971, the company opened a facility in Japan, which became the company’s first official entry into Asia. Today, the company employ s over 11,000 people around the world, with 4,700 employees in the Americas, 4,400 in Europe and 2,300 in Asia Pacific (History, 2009). While globalisation increased lollys for the company, ethical issues likewise began to become to a greater extent evident. In recite to uphold the values that the company was founded on, the company would hit to create ethical guidelines for international operations.\r\nIn 1991, Levi Strauss & Co. was the first multi-national company to develop a code of ethics for its international business partners and suppliers. The Levi Strauss & Co. Global Sourcing Guidelines were designed to construe that all LS&Co. facilities worldwide, as well as suppliers and business partners, conducted business in ethically and socially responsible shipway (Solomon, 1996). Requiring their business partners and suppliers to follow the company code of conduct protected the employees in development countries who could easily be exploited, and it protecte d the company’s reputation, which would also contribute to their success.\r\nThis code of conduct was developed in gild to avoid or eliminate some of the most common ethical dilemmas associated with globalization. In order to maintain contracts with LS&Co., suppliers hold to provide workers with fair issue, a preventive and healthy working environment and jump by the laws and regulations that govern the country and industry. Suppliers would also prohibit the use of claw or forced labor, discrimination and forms of inhumane corrective practices (Solomon, 1996).\r\nWhile globalization helps create countries to pretend free market economies, it also presents legion(predicate) ethical dilemmas, as huge companies profit from the desperate need for work in poor countries (Dickey, 2002). Since ethical issues can be viewed differently by different cultures, developing global business ethics can be difficult. For pillow slip, many western cultures may view child labor as a necessary, and accepted, source of income for many families, but many Americans and other western cultures see child labor as abuse. When Levi Strauss & Co. learned that two of its suppliers were using child labor in Bangladesh, they had a moral dilemma.\r\nThe families of the working children relied heavily on their incomes, so firing them cleverness create a major adversity on the children and their families, or even force the children to look for to a greater extent inhumane sources of income, such as harlotry or begging (Solomon, 1996). LS&Co. looked for more creative ways to solve the problem, and came up with a solution that would benefit everyone. Their suppliers concord to continue foundering the children under age 14 while they attended school, and LS&Co. paid for tuition, books and uniforms, then when the children turned 14, they could be rehired by the company (Solomon, 1996). This solution created no financial hardship for the children and families wh o would otherwise pull back their income, and allowed them to receive an education, as children should.\r\nLevi Strauss & Co. has also faced other ethical issues overseas, and interpreted a responsible approach to result the problem. In 1998, for example, they decided to close the factories in Belgium, but worried that the loss of over 1,000 jobs might devastate the Belgian economy. In order to avoid financial hardship for the community, and stimulate drill, LS&Co. decided to pay each employee a farewell motivator of $13,201, and an additional $4,950 to all employees who found employment within four months. They also concur to pay employees who decided to receive cookery instead of work $330 per month for six months, and employees who did not work received $90 per month for three years. Considering the average one-year salary for Belgian workers was between $2,000 and $3,000, this reward was more than fair to the employees who had been laid off.\r\nLevi Strauss & Co. continued to contribute to the Belgian economy to make sure that the market would preserve stable and keep the unemployed from passage into poverty (Bennett, 2008). That year, they contributed $78,560 to programs that encouraged education, training, workforce development, pocket-sized businesses, life skills training and financial literacy to the Belgian economy, in the belief that â€Å"economic development extends beyond the workplace…and in order for an economy to thrive, the community must be able to support it” (Bennett, 2008, p.4).\r\nLevi Strauss & Co. has been a leader in corporate social responsibility and one of the first multi-national companies to develop a code of conduct for global business ethics. The company continues to demonstrate their values of empathy, originality, integrity and courage while operating in all countries, and requires the same of their suppliers and business partners. Their creative solutions to common ethical dilemmas in developing countries, such as child labor and layoffs, and their continued efforts to contribute to the economies of the developing countries they operate in, sets a powerful example for multinational corporations to follow.\r\nEven though globalization can provide an income for people who might otherwise starve to death, it can also lead to ethical and moral problems such as child labor, low wages and hazardous working conditions. While it is not illegal, or unethical, for companies to operate overseas, they do have an ethical responsibility to deal with ethical dilemmas in a responsible and socially acceptable manner.\r\nReferences\r\nBennett, D. (2008). Globalization and blue jeans. Retrieved whitethorn 21, 2010, from Associated Content: http://www.associatedcontent.com/article/896109/globalization_and_blue_jeans.html?cat=17 Dickey, F. (2002). Levi Strauss and the price we pay. Retrieved whitethorn 22, 2010, from Mindfully.org: http://www.mindfully.org/WTO/Levi-Strauss-Globalizat ion1dec02.htm History. (2009). Retrieved May 22, 2010, from Levi Strauss & Co.: http://www.levistrauss.co.za/Heritage/History.aspx Solomon, C. M. (1996). Put your ethics to a global test. Personnel Journal, 75(1). Human Resources Abstracts. Retrieved May 22, 2010 from EBSCOhost.\r\n'