Adrian Class 9
Supply Chain Management and Working Conditions in Modern Capitalism
Page 1
Class 9 Overview: Examining supply chain management and its relation to working conditions in modern capitalism.
Page 2: Roadmap
Key aspects of supply chain management
Supply chain management in a global context
The global business system
Working conditions in global supply chains
In-class case study: The Fast Fashion industry
Strategies to improve working conditions in global supply chains
Page 3: Supply Chain Management
Definition: Focuses on inter-organizational logistics.
Objective: Ensuring organizations optimally acquire supplies from others.
Page 4: Supply Chain Management and Business Society
Supply chains are now global.
Result: New concerns raised about working conditions in these global supply chains.
Page 5: Globalization – A Brief Explainer
Definition: Increasing movement of goods, services, and capital across national borders (Lawrence & Weber, 125).
Page 6: The Global Business System
Transnational corporations: Firms controlling assets abroad (79,000+ worldwide).
Foreign direct investment and international financial/trade institutions supporting globalization.
Other organizations:
International NGOs
Local communities and economies (Lawrence & Weber, 126-131).
Page 7: Transnational Corporations Examples
Major examples include:
Microsoft
McDonald's
Gillette
Samsung
Nokia
Marlboro
Page 8: International Finance and Trade Institutions
Key organizations:
World Trade Organization (WTO)
The World Bank
Page 9: International NGOs
Notable NGOs include:
Greenpeace
WWF
ESCR-Net
Amnesty International
Business for Social Responsibility (BSR)
Others focusing on human rights.
Page 10: Local Communities
Importance of engaging and supporting local communities in the context of globalization.
Page 11: Globalization Challenges for Working Conditions
Exploration of how globalization complicates labor standards and working conditions.
Page 12: Globalization and the "Race to the Bottom"
Refers to competition between companies leading to decreased labor standards and pressures for faster production times.
Page 13: Modern Slavery
Definition: Severe exploitation of people for personal/commercial gain.
Forms include:
Human trafficking
Forced labor
Debt bondage
Descent-based slavery
Child exploitation (child trafficking, child soldiers, child marriage, domestic slavery).
Forced and early marriage contexts considered slavery.
Page 14: Complexity of Labour Issues
Focus on garment and apparel industry working conditions.
Page 18: Attempts to Fix Working Conditions
Company-level policies and global codes of conduct.
Multi-stakeholder initiatives aimed at improving standards.
Importance of reporting and certification standards.
Page 19: Company-Level Attempts
Companies' initiatives include:
Practices and codes of conduct (e.g., Nike, H&M focus on wage increases).
Page 20: Global Codes of Conduct
Inclusion of frameworks like:
UN Global Compact
OECD Guidelines for Multinational Corporations.
Page 21: Multi-Stakeholder Initiatives (Private Regulation)
Essential initiatives include:
Reporting standards (e.g., GRI)
Certification (ISO, FSC).
Page 24: Responding to the Rana Plaza Collapse
Accord on Fire and Building Safety in Bangladesh:
Key components:
Legally binding agreements
Independent inspections
Public disclosures of safety reports
Worker empowerment initiatives.
Page 26: The Accord vs. The Alliance
Comparison of two initiatives:
Accord: 72 firms, legally binding, independent inspections.
Alliance: 17 firms, not legally binding, firm-controlled repairs.
Page 28: Slow Fashion
Advocates for:
Capsule wardrobe concept
Buying second-hand or high-quality clothes.
Learning to create personal clothing.
Page 31: Summary
Supply chain management focuses on procuring key inputs for production.
Globalization poses significant challenges for working conditions.
Various attempts to resolve issues exist but have limitations.