Using the Seven Steps of Decision-Making framework from this week’s content, please
develop an essay responding to the following questions related to the case study Student
Advocacy and “Sweatshop” Labor: The Case of Russell Athletic (p. 109).
Recognize decision requirement: What are the factors to consider in a corporation when
deciding to outsource labor to developing countries? Include the following:
1. Diagnosis and analysis of causes: If labor outsourcing to developing countries is a
legitimate business strategy, how can it be handled without risk of running into a
sweatshop scandal?
2. Development of alternatives: What are other countries doing to avoid, reduce or
eliminate
sweatshops?
Selection of desired alternative: Decide on alternatives for outsourcing for companies
in developed countries, including whether or not to maintain or implement the same
high labor standards and regulations as in the home countries.
3. Implementation of alternatives: Which alternatives would be best for outsourcing for
companies in the United States?
4. Evaluation and feedback: Have your recommendations been implemented in other
countries? Are they working? What has been the outcome?
Essays should have an introduction (to the topic of the assignment), a body (where you will
integrate your responses), and a conclusion (your thoughts on the assignment). Please do not
just answer the questions as is. It is best to use APA (7th ed) headings to capture the essence
of the questions as a way to make sure you have integrated all of the responses in your essay.
Also, make sure you are using an APA (7th ed) paper template as a starting point.
Your well-written essay should meet the following requirements:
•
Be 5-6 pages in length, which does not include the title page, abstract, or required
reference page, which is never a part of the content minimum requirements.
•
Please avoid plagiarism
•
Use APA (7th ed) style guideline, in reference and in-text citation.
•
The attached textbook should be cited in the references
•
Support your submission with course material concepts, principles, and theories from
the textbook and at least four scholarly, peer-reviewed journal articles.
•
Please make sure to make the case analysis in appropriate, extensive manner using
the seven steps of decision-making framework
7 STEPS TO EFFECTIVE
DECISION MAKING
Decision making is the process of making choices
by identifying a decision, gathering information,
and assessing alternative resolutions.
REVIEW YOUR
DECISION
Using a step-by-step decision-making process can
help you make more deliberate, thoughtful
decisions by organizing relevant information and
defining alternatives. This approach increases the
chances that you will choose the most satisfying
alternative possible.
TAKE ACTION
WEIGH THE
EVIDENCE
CHOOSE
AMONG
ALTERNATIVES
IDENTIFY
ALTERNATIVES
GATHER
INFORMATION
IDENTIFY
THE DECISION
Step 1: Identify the decision
You realize that you need to make a decision. Try to
clearly define the nature of the decision you must
make. This first step is very important.
Step 2: Gather relevant information
Collect some pertinent information before you make
your decision: what information is needed, the best
sources of information, and how to get it. This step
involves both internal and external “work.” Some
information is internal: you’ll seek it through a process
of self-assessment. Other information is external:
you’ll find it online, in books, from other people, and
from other sources.
Step 3: Identify the alternatives
As you collect information, you will probably identify
several possible paths of action, or alternatives. You
can also use your imagination and additional
information to construct new alternatives. In this step,
you will list all possible and desirable alternatives.
umassd.edu
Step 4: Weigh the evidence
Draw on your information and emotions to imagine
what it would be like if you carried out each of the
alternatives to the end. Evaluate whether the need
identified in Step 1 would be met or resolved through
the use of each alternative. As you go through this
difficult internal process, you’ll begin to favor certain
alternatives: those that seem to have a higher
potential for reaching your goal. Finally, place the
alternatives in a priority order, based upon your own
value system.
Step 5: Choose among alternatives
Once you have weighed all the evidence, you are
ready to select the alternative that seems to be the
best one for you. You may even choose a combination
of alternatives. Your choice in Step 5 may very likely be
the same or similar to the alternative you placed at
the top of your list at the end of Step 4.
Step 6: Take action
You’re now ready to take some positive action by
beginning to implement the alternative you chose in
Step 5.
Step 7: Review your decision & its consequences
In this final step, consider the results of your decision
and evaluate whether or not it has resolved the need
you identified in Step 1. If the decision has not met
the identified need, you may want to repeat certain
steps of the process to make a new decision. For
example, you might want to gather more detailed or
somewhat different information or explore additional
alternatives.
In-Depth Integrative Case 1.1
Student Advocacy and “Sweatshop” Labor:
The Case of Russell Athletic
Introduction
In November 2009, after nearly two years of student campaigning in coordination with the apparel workers, the Honduran workers’ union concluded an agreement with Russell
Athletic, a major supplier of clothing and sportswear to college campuses around the country. The agreement included
a commitment by Russell to put all of the workers back to
work, to provide compensation for lost wages, to recognize
the union and agree to collective bargaining, and to allow
access for the union to all other Russell apparel plants in
Honduras for union organizing drives in which the company
will remain neutral. According to a November 18, 2009,
press release of United Students Against Sweatshops (USAS),
this has been an “unprecedented victory for labor rights.”1
Outsourcing of production facilities and labor to developing countries has been one of the important business
strategies of large U.S. corporations. While in the United
States, a typical corporation is subject to various regulations and laws such as minimum wage law, labor laws,
safety and sanitation requirements, and trade union organizing provisions, in some developing countries these laws are
soft and rudimentary, allowing a large corporation to derive
significant cost benefits from outsourcing. Moreover, many
developing countries like Bangladesh, China, Honduras,
India, Pakistan, and Vietnam encourage the outsourcing of
work from the developed world to factories within their
borders as a source of employment for their citizens, who
otherwise would suffer from lack of jobs in their country.
However, in spite of the obvious positive fact of creating
new jobs in the hosting country, large multinational corporations very often have been criticized for violating the
rights of the workers, creating unbearable working conditions, and increasing workloads while cutting compensation. They have been attacked for creating a so-called
sweatshop environment for their employees. A few of the
recent targets of the criticism have been Walmart,2 Disney,3
JCPenney, Target, Sears,4 ToysRUs,5 Nike,6 Reebok,7
adidas,8 Gap,9 IBM, Dell, HP,10 Apple, and Microsoft,11 etc.
This case addresses advocacy by students and other
stakeholders toward one of these companies and documents the evolution and outcome of the dispute.
What Is a Sweatshop?
By common agreement, a sweatshop is a workplace that
provides low or subsistence wages under harsh working
conditions, such as long hours, unhealthy conditions, and/
or an oppressive environment. Some observers see these
work environments as essentially acceptable if the laborers freely contract to work in such conditions. For others,
to call a workplace a sweatshop implies that the working
conditions are illegitimate and immoral. The U.S. Government Accountability Office (the name since July 7, 2004)
would hone this definition for U.S. workplaces to include
those environments where an employer violates more than
one federal or state labor, industrial homework, occupational safety and health, workers’ compensation, or industry registration laws. The AFL-CIO Union of Needletrades,
Industrial and Textile Employees would expand on that to
include workplaces with systematic violations of global
fundamental workers’ rights. The Interfaith Center on
Corporate Responsibility (ICCR) defines sweatshops
much more broadly than either of these; even where a
factory is clean, well organized, and harassment free, the
ICCR considers it a sweatshop if its workers are not paid
a sustainable living wage. The purpose of reviewing these
varied definitions is to acknowledge that, by definition,
sweatshops are oppressive, unethical, and patently unfair
to workers.12
History of Sweatshops
Sweatshop labor systems were most often associated with
garment and cigar manufacturing of the period 1880–
1920. Sweated labor can also be seen in laundry work,
green grocers, and most recently in the “day laborers,”
often legal or illegal immigrants, who landscape suburban
lawns.13 Now, sweatshops are often found in the clothing
industry because it is easy to separate higher- and lowerskilled jobs and contract out the lower-skilled ones. Clothing companies can do their own designing, marketing, and
cutting and contract out sewing and finishing work. New
contractors can start up easily; all they need are a few
sewing machines in a rented apartment or factory loft
located in a neighborhood where workers can be
recruited.14 Sweatshops make the most fashion-oriented
clothing—women’s and girls’—because production has to
be flexible, change quickly, and be done in small batches.
In less style-sensitive sectors—men’s and boys’ wear,
hosiery, and knit products—there is less change and longer production runs, and clothing can be made competitively in large factories using advanced technology.15
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Since their earliest days, sweatshops have relied on immigrant labor, usually women, who were desperate for work
under any pay and conditions. Sweatshops in New York
City, for example, opened in Chinatown, the mostly Jewish
Lower East Side, and Hispanic neighborhoods in the boroughs. Sweatshops in Seattle are near neighborhoods of
Asian immigrants. The evolution of sweatshops in L
ondon
and Paris—two early and major centers of the garment
industry—followed the pattern in New York City. First, garment manufacturing was localized in a few districts: the
Sentier of Paris and the Hackney, Haringey, Islington, Tower
Hamlets, and Westminster boroughs of London. Second, the
sweatshops employed mostly immigrants, at first men but
then primarily women, who had few job alternatives.16
In developing countries, clothing sweatshops tend to be
widely dispersed geographically rather than concentrated
in a few districts of major cities, and they often operate
alongside sweatshops, some of which are very large, that
produce toys, shoes (primarily athletic shoes), carpets, and
athletic equipment (particularly baseballs and soccer balls),
among other goods. Sweatshops of all types tend to have
child labor, forced unpaid overtime, and widespread violations of workers’ freedom of association (i.e., the right to
unionize). The underlying cause of sweatshops in developing nations—whether in China, Southeast Asia, the Caribbean, or India and Bangladesh—is intense cost-cutting
done by contractors who compete among themselves for
orders from larger contractors, major manufacturers, and
retailers.17 Sweatshops became visible through the public
exposure given to them by reformers in the late 19th and
early 20th centuries in both England and the United States.
In 1889–1890, an investigation by the House of Lords
Select Committee on the Sweating System brought attention in Britain. In the United States, the first public investigations came as a result of efforts to curb tobacco
homework, which led to the outlawing of the production
of cigars in living quarters in New York State in 1884.18
The spread of sweatshops was reversed in the United
States in the years following a horrific fire in 1911 that
destroyed the Triangle Shirtwaist Company, a women’s
blouse manufacturer near Washington Square in New York
City. The company employed 500 workers in notoriously
poor conditions. One hundred forty-six workers perished in
the fire; many jumped out windows to their deaths because
the building’s emergency exits were locked. The Triangle
fire made the public acutely aware of conditions in the
clothing industry and led to pressure for closer regulation.
The number of sweatshops gradually declined as unions
organized and negotiated improved wages and conditions
and as government regulations were stiffened (particularly
under the 1938 Fair Labor Standards Act, which imposed a
minimum wage and required overtime pay for work of more
than 40 hours per week).19 Unionization and government
regulation never completely eliminated clothing sweatshops,
and many continued on the edges of the industry; small
sweatshops were difficult to locate and could easily close
and move to avoid union organizers and government inspectors. In the 1960s, sweatshops began to reappear in large
numbers among the growing labor force of immigrants, and
by the 1980s sweatshops were again “business as usual.” In
the 1990s, atrocious conditions at a sweatshop once again
shocked the public.20 A 1994 U.S. Department of Labor spot
check of garment operations in California found that 93 percent had health and safety violations, 73 percent of the garment makers had improper payroll records, 68 percent did
not pay appropriate overtime wages, and 51 percent paid
less than the minimum wage.21
Sweatshop Dilemma
The fight against sweatshops is never a simple matter;
there are mixed motives and unexpected outcomes. For
example, unions object to sweatshops because they are
genuinely concerned about the welfare of sweated labor,
but they also want to protect their own members’ jobs
from low-wage competition even if this means ending the
jobs of the working poor in other countries.22 Also, sweatshops can be evaluated from moral and economic perspectives. Morally, it is easy to declare sweatshops
unacceptable because they exploit and endanger workers.
But from an economic perspective, many now argue that,
without sweatshops, developing countries might not be
able to compete with industrialized countries and achieve
export growth. Working in a sweatshop may be the only
alternative to subsistence farming, casual labor, prostitution, and unemployment. At least most sweatshops in
other countries, it is argued, pay their workers above the
poverty level and provide jobs for women who are otherwise shut out of manufacturing. And American consumers
have greater purchasing power and a higher standard of
living because of the availability of inexpensive imports.23
NGOs’ Anti-Sweatshop Initiatives
International nongovernmental organizations (NGOs) have
attempted to step into the sweatshop conflict to suggest
voluntary standards to which possible signatory countries
or organizations could commit. For instance, the International Labour Office has promulgated its Tripartite Declaration of Principles Concerning Multinational Enterprises
and Social Policy, which offers guidelines for employment,
training, conditions of work and life, and industrial relations. The “Tripartite” nature refers to the critical cooperation necessary from governments, employers’ and workers’
organizations, and the multinational enterprises involved.24
On December 10, 1948, the General Assembly of the
United Nations adopted its Universal Declaration of
Human Rights, calling on all member countries to publicize the text of the Declaration and to cause it to be
disseminated, displayed, and read. The Declaration recognizes that all humans have an inherent dignity and
specific equal and inalienable rights. These rights are
In-Depth Integrative Case 1.1 Student Advocacy and “Sweatshop” Labor: The Case of Russell Athletic
based on the foundation of freedom, justice, and peace.
The UN stated that the rights should be guaranteed without distinction of any kind, such as race, color, sex, language, religion, political or other opinion, national or
social origin, property, birth, or other status. Furthermore, no distinction shall be made on the basis of the
political, jurisdictional, or international status of the
country or territory to which a person belongs. The foundational rights also include the right to life, liberty, and
security of person and protection from slavery or servitude, torture, or cruel, inhuman, or degrading treatment
or punishment.25 Articles 23, 24, and 25 discuss issues
with immediate implications for sweatshops. By extrapolation, they provide recognition of the fundamental
human right to nondiscrimination, personal autonomy or
liberty, equal pay, reasonable working hours and the ability to attain an appropriate standard of living, and other
humane working conditions. All these rights were reinforced by the United Nations in its 1966 International
Covenant on Economic, Social, and Cultural Rights.26
These are but two examples of standards promulgated
by the international labor community, though the enforcement of these and other norms is spotty. In the apparel
industry in particular, the process of internal and external
monitoring has matured such that it has become the norm
at least to self-monitor, if not to allow external thirdparty monitors to assess compliance of a supplier factory
with the code of conduct of a multinational corporation
or with that of NGOs. Though a number of factors
affected this evolution, one such factor involved pressure
by American universities on their apparel suppliers,
which resulted in two multistakeholder efforts—the Fair
Labor Association, primarily comprising and funded by
the multinational retailers, and the Worker Rights Consortium, originally perceived as university driven.
Through a cooperative effort of these two organizations,
large retailers such as Nike and Adidas not only have
allowed external monitoring, but Nike has now published
a complete list of each of its suppliers.27
The Case of Russell Athletic
While some argue that sweatshop scandals cause little or
no impact on the corporate giants because people care
more for the ability to buy cheap and affordable products
rather than for working conditions of those who make
these products,28 the recent scandal around the Russell
Athletic brand has proved that it may no longer be as easy
for a corporation to avoid the social responsibility for its
outsourcing activities as it has been for a long time.
November 2009 became a tipping point in the many years
of struggle between the student anti-sweatshop movement
and the corporate world. An unprecedented victory was
won by the United Students Against Sweatshops (USAS)
coalition against Russell Athletic, a corporate giant owned
by Fruit of the Loom, a Berkshire-Hathaway portfolio
109
company. USAS pressure tactics persuaded one of the
nation’s leading sportswear companies, Russell Athletic,
to agree to rehire 1,200 workers in Honduras who lost
their jobs when Russell closed their factory soon after the
workers had unionized.29
Russell Corporation, founded by Benjamin Russell in
1902, is a manufacturer of athletic shoes, apparel, and
sports equipment. Russell products are marketed under
many brands, including Russell Athletic, Spalding,
Brooks, Jerzees, Dudley Sports, and others. This company
with more than 100 years of history has been a leading
supplier of team uniforms at the high school, college, and
professional level. Russell Athletic™ active wear and college-licensed products are broadly distributed and marketed through department stores, sports specialty stores,
retail chains, and college bookstores.30 After an acquisition in August 2006, Russell’s brands joined Fruit of the
Loom in the Berkshire-Hathaway family of products.
Russell/Fruit of the Loom is the largest private em
ployer in Honduras. Unlike other major apparel brands,
Russell/Fruit of the Loom owns all eight of its factories
in Honduras rather than subcontracting to outside manufacturers.31 The incident related to Russell Athletic’s business in Honduras that led to a major scandal in 2009 was
the company’s decision to fire 145 workers in 2007 for
supporting a union. This ignited the anti-sweatshop campaign against the company. Russell later admitted its
wrongdoing and was forced to reverse its decision. However, the company continued violating worker rights in
2008 by constantly harassing the union activists and making threats to close the Jerzees de Honduras factory. It
finally closed the factory on January 30, 2009, after
months of battling with a factory union.32
NGOs’ Anti-Sweatshop Pressure
The Worker Rights Consortium (WRC) has conducted a
thorough investigation of Russell’s activities, and ultimately
released a 36-page report on November 7, 2008, documenting the facts of worker rights violations by Russell in its
factory Jerzees de Honduras, including the instances of
death threats received by the union leaders.33 The union’s
vice president, Norma Mejia, publicly confessed at a Berkshire-Hathaway shareholders’ meeting in May 2009 that
she had received death threats for helping lead the union.34
The Worker Rights Consortium continued monitoring the
flow of the Russell Athletic scandal and issued new reports
and updates on this matter throughout 2009, including its
recommendation for Russell’s management on how to
mediate the situation and resolve the conflict.
As stated in its mission statement, the Worker Rights
Consortium is an independent labor rights monitoring
organization, whose purpose is to combat sweatshops and
protect the rights of workers who sew apparel and make
other products sold in the United States. The WRC conducts independent, in-depth investigations, issues public
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reports on factories producing for major U.S. brands, and
aids workers at these factories in their efforts to end labor
abuses and defend their workplace rights. The WRC is
supported by over 175 college and university affiliates
and is primarily focused on the labor practices of factories
that make apparel and other goods bearing university
logos.35
Worker Rights Consortium assessed that Russell’s
decision to close the plant represented one of the most
serious challenges yet faced to the enforcement of university codes of conduct. If allowed to stand, the closure
would not only unlawfully deprive workers of their livelihoods, it would also send an unmistakable message to
workers in Honduras and elsewhere in Central America
that there is no practical point in standing up for their
rights under domestic or international law and university
codes of conduct and that any effort to do so will result
in the loss of one’s job. This would have a substantial
chilling effect on the exercise of worker rights throughout
the region.36
The results of the WRC investigation of Russell Athletic unfair labor practices in Honduras spurred the nationwide student campaign led by United Students Against
Sweatshops (USAS), who persuaded the administrations
of Boston College, Columbia, Harvard, NYU, Stanford,
Michigan, North Carolina, and 89 other colleges and universities to sever or suspend their licensing agreements
with Russell. The agreements—some yielding more than
$1 million in sales—allowed Russell to put university
logos on T-shirts, sweatshirts, and fleeces.37
As written in its mission statement, USAS is a grassroots organization run entirely by youth and students.
USAS strives to develop youth leadership and run strategic
student-labor solidarity campaigns with the goal of building sustainable power for working people. It defines
“sweatshop” broadly and considers all struggles against the
daily abuses of the global economic system to be a struggle
against sweatshops. The core of its vision is a world in
which society and human relationships are organized cooperatively, not competitively. USAS struggles toward a world
in which all people live in freedom from oppression, in
which people are valued as whole human beings rather than
exploited in a quest for productivity and profits.38
The role of USAS in advocating for the rights of the
Honduran workers in the Russell Athletic scandal is hard
to overestimate. One can only envy the enthusiasm and
effort contributed by students fighting the problem that
did not seem to have any direct relationship to their own
lives. They did not just passively sit on campus, but went
out to the public with creative tactical actions such as
picketing the NBA finals in Orlando and Los Angeles to
protest the league’s licensing agreement with Russell, distributing fliers inside Sports Authority sporting goods
stores, and sending Twitter messages to customers of
Dick’s Sporting Goods urging them to boycott Russell
products. The students even sent activists to knock on
Warren Buffett’s door in Omaha because his company,
Berkshire-Hathaway, owns Fruit of the Loom, Russell’s
parent company.39
United Students Against Sweatshops involved students
from more than 100 campuses where it did not have chapters in the anti-Russell campaign. It also contacted students
at Western Kentucky University in Bowling Green, where
Fruit of the Loom has its headquarters.40 The USAS activists even reached Congress, trying to gain more support
and inflict more political and public pressure on Russell
Athletic. On May 13, 2009, 65 congressmen signed the
letter addressed to Russell CEO John Holland expressing
their grave concern over the labor violations.
In addition, the Fair Labor Association (FLA), a nonprofit organization dedicated to ending sweatshop conditions in factories worldwide, issued a statement on June 25,
2009, putting Russell Athletic on probation for noncompliance with FLA standards.41 The Fair Labor Association,
one of the powerful authorities that oversees the labor practices in the industry, represents a powerful coalition of
industry and nonprofit sectors. The FLA brings together
colleges and universities, civil society organizations, and
socially responsible companies in a unique multistakeholder initiative to end sweatshop labor and improve working conditions in factories worldwide. The FLA holds its
participants, those involved in the manufacturing and marketing processes, accountable to the FLA Workplace Code
of Conduct.42 The 19-member Board of Directors, the
FLA’s policy-making body, comprises equal representation
from each of its three constituent groups: companies, colleges and universities, and civil society organizations.43
Victory for USAS and WRC
As mentioned at the start of this case, on November 2009,
after nearly two years of student campaigning in coordination with the apparel workers, the Honduran workers’
union concluded an agreement with Russell that put all of
the workers back to work, provided compensation for lost
wages, recognized the union and agreed to collective bargaining, and provided access for the union to all other
Russell apparel plants in Honduras for union-organizing
drives in which the company will remain neutral. According to the November 18, 2009, press release of USAS,
this has been an “unprecedented victory for labor
rights.”44 Rod Palmquist, USAS International Campaign
Coordinator and University of Washington alumnus, noted
that there were no precedents for a factory apparently
being shut down to dislodge a union and “later reopened
after a worker-activist campaign.”45
This was not an overnight victory for the student movement and the coalition of NGOs such as USAS, WCR,
and FLA. It took over 10 years of building a movement
that persuaded scores of universities to adopt detailed
In-Depth Integrative Case 1.1 Student Advocacy and “Sweatshop” Labor: The Case of Russell Athletic
codes of conduct for the factories used by licensees like
Russell.46 It is another important lesson for the corporate
world in the era of globalization, which can no longer
expect to conduct business activities in isolation from the
rest of the world. The global corporations such as Russell
Athletic, Nike, Gap, Walmart, and others will have to
assess the impact of their business decisions on all the
variety of stakeholders and take higher social responsibility for what they do in any part of the world.
More recently, a fire at a Bangalore textile factory in
late 2012, and two horrific accidents at garment factories
in Bangladesh in 2013, have placed renewed pressure on
U.S. and European clothing brands to take greater responsibility for the working conditions of the factories from
which they source products. On April 24, 2013, more
than 1,000 workers were killed when an eight-story
building collapsed while thousands of people were working inside. Less then two weeks later, eight people were
killed in a fire at a factory in Dhaka that was producing
clothes for Western retailers. After a number of investor,
religious, labor, and human rights groups voiced concerns about the lack of oversight and accountability by
the major companies, several of the world’s largest
apparel firms agreed to a plan to help pay for fire safety
and building improvements. Companies agreeing to the
plan included the Swedish-based retailer H&M; Inditex,
owner of the Zara chain; the Dutch retailer C&A; and
British companies Primark and Tesco. At the same time,
the Bangladesh government announced that it would
improve its labor laws and raise wages, and ease restrictions on forming trade unions. U.S. retailers Walmart and
Gap did not commit to the agreement, expressing concerns about legal liability in U.S. courts. Instead, with
the help of a U.S.-based think tank, they announced they
would pursue a separate accord to improve factory conditions in Bangladesh.47
Despite these promises by various companies and governmental organizations, and a commitment of over a
quarter of a billion dollars, much work remains to be done.
According to December 2015 report by NYU Stern Center
for Business and Human Rights, only eight out of over
3,000 factories in Bangladesh had cleared violations in the
years since the garment fires and building collapse.48
111
Questions for Review
1. Assume that you are an executive of a large U.S.
multinational corporation planning to open new
manufacturing plants in China and India to save on
labor costs. What factors should you consider when
making your decision? Is labor outsourcing to
developing countries a legitimate business strategy
that can be handled without risk of running into a
sweatshop scandal?
2. Do you think that sweatshops can be completely
eliminated throughout the world in the near future?
Provide an argument as to why you think this can
or cannot be achieved.
3. Would you agree that in order to eliminate sweatshop conflicts, large corporations such as Russell
Athletic should retain the same high labor standards
and regulations that they have in the home country
(for example, in the U.S.) when they conduct business in developing countries? How hard or easy can
this be to implement?
4. Do you think that the public and NGOs like USAS
should care about labor practices in other countries?
Isn’t this a responsibility of the government of each
particular country to regulate the labor practices
within the borders of its country? Who do you
think provides a better mechanism of regulating and
improving the labor practices: NGOs or country
governments?
5. Would you agree that Russell Athletic made the
right decision by conceding to USAS and union
demands? Isn’t a less expensive way to handle this
sort of situation simply to ignore the scandal?
Please state your pros and cons regarding Russell’s
decision to compromise with the workers’ union
and NGOs as opposed to ignoring this scandal.
Source: This case was prepared by Professor Jonathan Doh and Tetyana Azarova of Villanova University as the basis for class discussion.
Additional research assistance was provided by Ben Littell. It is not
intended to illustrate either effective or ineffective managerial capability or administrative responsibility.
ENDNOTES
1. USAS Press Release on “Jerzees de Honduras
Victory,” USAS, November 18, 2009, usas.
org/2009/11/18/usas-press-release-on-jerzees-dehonduras-victory/.
2. David Barboza, “In Chinese Factories, Lost Fingers
and Low Pay,” New York Times, January 5,
2008, www.nytimes.com/2008/01/05/business/
worldbusiness/05sweatshop.html.
3. Ibid.
4. “Tearing Down a Sweatshop,” Duke University News,
June 15, 2001, https://today.duke.edu/2001/06/
peterle615.html.
5. Dexter Roberts and Aaron Bernstein, “Inside a
Chinese Sweatshop: A Life of Fines and Beating,”
BusinessWeek, October 2, 2000, www.bloomberg.
112
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Part 1 Environmental Foundation
com/news/articles/2000-10-01/inside-a-chinesesweatshop-a-life-of-fines-and-beating.
Tim Connor, “Still Waiting for Nike to Do It,”
Global Exchange, May 2001, www.globalexchange.
org/campaigns/sweatshops/nike/stillwaiting.html.
Ann Harrison and Jason Scorse, “Multinationals
and Anti-Sweatshop Activism,”American Economic
Review 100, no. 1 (March 2010), https://www.
aeaweb.org/articles?id=10.1257/aer.100.1.247.
Ibid.
Ibid.
“Working in a Chinese Sweatshop for HP, Microsoft, Dell and IBM,” France 24, December 2, 2009,
observers.france24.com/en/20090212-working-hpmicrosoft-china-serving-prison-sentencesweatshop-dell-ibm-china.
Jonathan Adams and Kathleen E. McLaughlin,
“Special Report: Silicon Sweatshops,” Globalpost,
November 17, 2009, sacom.hk/special-reportsilicon-sweatshops/.
Laura P. Hartman, Encyclopedia of Business
Ethics and Society, vol. 4, ed. Robert W. Kolb
(Thousand Oaks, CA: Sage Publications, 2008),
pp. 2034–2041.
Richard A. Greenwald, Dictionary of American
History, 3rd ed., vol. 8, ed. Stanley I. Kutler (New
York: Charles Scribner’s Sons, 2003), pp. 34–35.
Gary Chaison, Encyclopedia of Clothing and Fashion, vol. 3, ed. Valerie Steele (Detroit: Charles
Scribner’s Sons, 2005), pp. 247–250.
Ibid.
Ibid.
Ibid.
Greenwald, Dictionary of American History,
pp. 34–35.
Chaison, Encyclopedia of Clothing and Fashion,
pp. 247–250.
Ibid.
Hartman, Encyclopedia of Business Ethics and
Society, pp. 2034–2041.
Chaison, Encyclopedia of Clothing and Fashion,
pp. 247–250.
Ibid.
Hartman, Encyclopedia of Business Ethics and
Society, pp. 2034–2041.
Ibid.
Ibid.
27. Ibid.
28. Laura Fitch, “Do Sweatshop Scandals Really
Damage Brands?” Brandchannel, November 20,
2009, www.brandchannel.com/home/post/2009/
11/20/Do-Sweatshop-Scandals-Really-DamageBrands.aspx#continue.
29. Steven Greenhouse, “Labor Fight Ends in Win for
Students,” New York Times, November 17,
2009, www.nytimes.com/2009/11/18/
business/18labor.html.
30. Russell Athletic home page, www.fotlinc.com/pages/
russell-athletic-classic-athletic-apparel-and-uniforms.
html#.WCNTKPorKUk.
31. “USAS Press Release on Jerzees de Honduras Victory.”
32. “Russell Corporation’s Rights Violations in Honduras,” Worker Rights Consortium, News and Projects,
http://workersrights.org/RussellRightsViolations.asp.
33. Ibid.
34. Greenhouse, “Labor Fight Ends in Win for Students.”
35. “Mission,” Worker Rights Consortium, http://
workersrights.org/about/.
36. “Russell Corporation’s Rights Violations in Honduras.”
37. Greenhouse, “Labor Fight Ends in Win for Students.”
38. USAS, “Mission and Vision,” http://usas.org/about/
mission-vision-organizing/.
39. Greenhouse, “Labor Fight Ends in Win for Students.”
40. Ibid.
41. FLA Board Resolution on Special Review for
Russell Corporation, adopted June 25, 2009, Fair
Labor Association, www.fairlabor.org/sites/default/
files/documents/reports/board_resolution_06.28.09.pdf.
42. “FLA Workplace Code of Conduct,” Fair Labor
Association, www.fairlabor.org/our-work/laborstandards.
43. “Board of Directors,” Fair Labor Association, www.
fairlabor.org/about-us/board-directors.
44. USAS Press Release on “Jerzees de Honduras
Victory.”
45. Ibid.
46. Greenhouse, “Labor Fight Ends in Win for Students.”
47. Steven Greenhouse and Jim Yardley, “Global Retailers
Join Safety Plan for Bangladesh.” New York Times,
May 14, 2013, p. A1.
48. Gillian B. White, “Are Factories in Bangladesh Any
Safer Now?,” The Atlantic Magazine, December 17,
2015, www.theatlantic.com/business/archive/2015/12/
bangladesh-factory-workers/421005/.
Using the Seven Steps of Decision-Making framework from this week’s content, please
develop an essay responding to the following questions related to the case study Student
Advocacy and “Sweatshop” Labor: The Case of Russell Athletic (p. 109).
Recognize decision requirement: What are the factors to consider in a corporation when
deciding to outsource labor to developing countries? Include the following:
1. Diagnosis and analysis of causes: If labor outsourcing to developing countries is a
legitimate business strategy, how can it be handled without risk of running into a
sweatshop scandal?
2. Development of alternatives: What are other countries doing to avoid, reduce or
eliminate
sweatshops?
Selection of desired alternative: Decide on alternatives for outsourcing for companies
in developed countries, including whether or not to maintain or implement the same
high labor standards and regulations as in the home countries.
3. Implementation of alternatives: Which alternatives would be best for outsourcing for
companies in the United States?
4. Evaluation and feedback: Have your recommendations been implemented in other
countries? Are they working? What has been the outcome?
Essays should have an introduction (to the topic of the assignment), a body (where you will
integrate your responses), and a conclusion (your thoughts on the assignment). Please do not
just answer the questions as is. It is best to use APA (7th ed) headings to capture the essence
of the questions as a way to make sure you have integrated all of the responses in your essay.
Also, make sure you are using an APA (7th ed) paper template as a starting point.
Your well-written essay should meet the following requirements:
•
Be 6-7 pages in length, which does not include the title page, abstract, or required
reference page, which is never a part of the content minimum requirements.
•
Please avoid plagiarism
•
Use APA (7th ed) style guideline, in reference and in-text citation.
•
The attached textbook should be cited in the references
•
Support your submission with course material concepts, principles, and theories from
the textbook and at least four scholarly, peer-reviewed journal articles.
•
Please make sure to make the case analysis in appropriate, extensive manner using
the seven steps of decision-making framework
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