Apple, Hewlett-Packard, two giant companies working in the electronic computer industry, are taking steps to reduce the number of student workers in their Chinese manufacturing suppliers. Why?
The idea of students working in a manufacturing company to make up some money has never been a bad thing. A period of time spent in a company – i.e., internships, apprenticeship, stages, and the like – is usually good experience for the students as it exposes them to real work, they have a chance to put into practice what they have learned, and could provide a smooth entry to the job market. How could this experience harm students? Why large US companies want Chinese suppliers to reduce student labor?
I know what you may be thinking but we are not concerned with elementary school students. Hence, this is not yet another child labor issue. According to an article that appeared February 7, 2013 in the New York Times, some Chinese factories use temporary, high school student, and vocational school student workers to face high spikes of production. In these cases, students are asked to work long hours on something that is sometimes unrelated to their studies. School principals receive a bonus for sending their students to the factories. Moreover, there have been some issues of forced labor. This is a clear violation of elementary principles of responsible labor set by the International Labor Organization's (ILO) Declaration on Fundamental Principles and Rights at Work, Principle 2.
There are two issues that deal more directly with corporate social responsibility. First, these temp and student workers perform their jobs for free. The assumption is that the work program in the factory helps them learn how to perform a job. What if they don't need that type of job? What if it is unrelated with their studies? What if the job is repetitive and takes just a few hours to be learned? In short, are we talking about a "fair" contract between the company and its unpaid workers? What is the rationale behind the process?
Second, for a company – such as HP or Apple – that proclaims its social responsibility and strongly advocates for it, forced labor is one of the most regrettable events that can happen. Of course, if this manifests in the company on in one of its supplier really makes little difference (do you agree with this?). Forced labor is close to slavery and this is why it is particularly and vehemently opposed by the ILO and companies that make public statements on their social responsible policies.
Now, how could the problem be sold? HP and Apple declared that they are going to inspect the factories of their suppliers to monitor employment of temporary and student workers. Is this enough? Is this a 'rational' step? How can these company make better use of their resources and help their suppliers cope with the problem? While the second definitely is a relevant issue in social responsibility of corporations, is the first topic touched above of real concern? Why is it so?
A multi-billion dollar company has resources to cope with any issue. Why not help schools set up internship programs that actually match student curricula?
A positive note is that it seems that labor issues in international social responsibility are finally moving forward and beyond the usual (unfortunately still unsolved) problem with child labor. This is a fine step in the evolution of the social responsibility of employment relations.
Good point. What do you think are the advantages of staying in China? Why do you think it is so easy to cope with these problems instead of investing some other place? Moreover, would it be 'responsible' for a company to leave China? Would it make social and business sense?
ReplyDeleteThe first variable that comes to mind when we deal with US/European companies going to China is always costs. However, there may be other more compelling reasons for Western companies to stay in China. What do you think? Why are you suggesting US companies to go back home?
the 1st issues, i think it depends whether the students are voluntarily, or they are willing to do such things that‘What if they don't need that type of job? What... hours to be learned?'. as i come from china, i know that uni will never force us to do that, u have the right to make ur own choice, but, u know, that china has a great population base, so as ur mentioned before, to practice in giant company will provide a smooth entry to the job market, so there is no fair in it.
ReplyDeletesecondly, as multinational corporation, even it makes discipline, does anyone will obey the rules? have u see the research done by Germany about 'Der Preis der Blue-Jeans'?
at last, to this topic, the question is that people havent a common scene in china.
'Der Preis der Blue-Jeans' is really a good research. it talks about the social responsibility.
ReplyDeleteI think the English translation is something like 'the price of blue-jeans'. It sounds interesting and reminds me of a book I read years ago written by Pietra Rivoli, 'The travels of a t-shirt in the global economy' (Wiley). The book covers every step that is taken in the making of a t-shirt; something like from conception to death. This includes some questionable passages, including cotton farms. I think what you mention is probably a story similar to that book.
Deleteactually, it's totally different after i have scanned some chapters of the book u mentioned. 'der preis der blue-jeans' talks about cruel facts behind the jeans sold in a lower price in some supermarkets ( but also we can see some other brands such as H&M in the movie) in Germany. the main criticism is that companies haven't take care about how are such low price jeans made which some of the methods are against the laws, they just focus on the benefits. from the movie, we can see the environment pollution, by using harmful chemicals which are forbidden in the world, or squeezing labor without taking their health into consideration.
Deleteu know, H&M is a Swedish multinational retail-clothing company, but after this research is published, it hasn't done nothing, even we don't know such things.
Deleteso i think it's a typical issues about the SCR, compare with this article which i think it's a dilemma between china's law( such 'world factory' countries) and the disciplines of the companies.
I think the reason why many company stay in China,firstly, costs , as we know the company can pay salaries for employees in china whole day but they can use the same amount of money to pay only 1 or 2 Hr in US/European and another benefit is how many people in china? if you can sell your product over there then think about how much money company will got. right?
ReplyDeleteWell, other than the low labour cost in China, another factor that attracts US/European company to locate their production in China, i think, is the chinese government. Chinese government, if im not wrong, has specific way to attract and maintain the factories.
ReplyDeletewell, I think issues like force labor and working for long hours are not the real reasons behind the attempt to reduce the number of students working in these factories becouse the forced worker could be replaced by unforced one (without the need to reduce the number) and the problem of long hours working could be solved by allowing even more students to work and reduce the load and the long working hours.
ReplyDeleteUsing a large number of unskilled labor "students" might be the conclusion the market is getting out of these news, which could be used negatively by these companies competitors. Therefore, it could be just that these companies trying to act smart and proactively.
the fact is that china is no longer a country as we thought before, i mean, such low labor costs, etc. a lot of manufacturers also move to Vietnam, Thailand,or India, which cost less than china. so why are they still there,and in my opinion is that
ReplyDeletefirstly, has a giant potential market. it may be the center of world economy in 10 years.
secondly, as a big market, if transfer the goods from other countries, the loses are huge, i mean, the time costing(we can easily fly aboard to buy it in lower price :)), the taxes costing, transportation costing, etc.
thirdly, has a very good price although it's made in china. such as the price of iPhone is more about 200 pounds higher, or BURBERRY, god, it turns to be 2 times! but! goods are always sold out!!!(that's why Chinese love to go to Italy or France to shopping, haha)
fourthly, enjoy preferential policies. as mentioned above, the price is higher but with a lower taxes! the government is always focusing on the economy growth. (no SCR :( )
fifthly, china is still a developing country, the GDP is low and hasn't a well-established market and sophisticated financial system, so there are a lot of leaks.
sixth, as mentioned in 2nd case study, it's the 'guanxi', right?!
finally, i must to say that many of measures are bandwagon in china. if the government says'right, u can do that'. will the company do these measure automatically? in ethics?