environmentally, responsibility, accountability, internation
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OTA,
Please answer the following International business law inquiries:
A) You subcontract most of your manufacturing to suppliers in developing countries. What responsibility, legally and ethically, do you have to monitor conditions there? Is there any accountability?
B) You are a CEO of a small privately held organization. You have decided to expand your sales to include Eastern Europe, including Bulgaria and Japan. What difference does it make that both countries have ratified the OECD Anti-Bribery Convention? Could this be a factor in your business expansion plans?
C) Your organization in Indonesia uses a number of toxic cleaning solvents to clean manufacturing equipment. You could sell empty solvent containers and make money, or pay to have them disposed of in an environmentally safe way. Indonesia has minimal environmental regulation and the first option is legal in Indonesia, yet would violate United States law. What is your decision? Does your answer change if the profit or expenses of each option changes?
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Solution Summary
This posting dicusses subcontracting in the context of globalization of business.
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OTA,
Please answer the following International business law inquiries
A) You subcontract most of your manufacturing to suppliers in developing countries. What responsibility, legally and ethically, do you have to monitor conditions there? Is there any accountability?
Legal responsibility arises from the standards that have been set by the ILO these are there should be freedom of association and effective recognition of the right to collective bargaining, there should be no forced or mandatory labor, abolition of child labor an abolition of discrimination in respect of employment. From the US law in the Trade and Tariff Act of 1984 the acceptable conditions of work related to minimum wages, hours of work and occupational safety and health.
The Trade Act of 2002 also requires that nations provide their worker with internationally recognized worker rights.
Since the suppliers are independent and are located in the Third World country, there is no direct accountability on the US company to monitor the manufacturing of its suppliers, however, there is an ethical duty that the company must ensure ...
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