8.3.4 Consumer Action and Corporate Responsibility
Completion requirements
8.3.4 Consumer action and corporate responsibility
How should I respond to globalization?
We are all consumers of various kinds of goods — the gas in our cars, banking services, food, and clothing. Today, most products are sold by large corporations whose goods are produced in various places around the world. In Canada, corporations obey our local labour and consumer laws. However, they may not follow the same good practices when they are dealing with employees in nations that do not have strong laws to protect workers or the environment. They might ignore injustice to generate profits.
Perspectives on outsourcing: Outsourcing provides employment for people in the developing world. As during the Industrial Revolution, these workers move into cities where they can share ideas, accumulate greater wealth, and begin to demand better labour laws and greater human rights.
Corporations and brand reputation: Large corporations often are held to higher expectations because of their wealth and power. Brand reputation is very important for their profits. When consumers become aware of the injustices suffered by the workers who produce their goods, they can insist that the corporation change or lose business. Consumer campaigns, including media campaigns, public protests and demonstrations, and product boycotts often are used to pressure these companies to change their practices. A large and well-run consumer action campaign can have impressive results.
Perspectives on outsourcing: Outsourcing provides employment for people in the developing world. As during the Industrial Revolution, these workers move into cities where they can share ideas, accumulate greater wealth, and begin to demand better labour laws and greater human rights.
Corporations and brand reputation: Large corporations often are held to higher expectations because of their wealth and power. Brand reputation is very important for their profits. When consumers become aware of the injustices suffered by the workers who produce their goods, they can insist that the corporation change or lose business. Consumer campaigns, including media campaigns, public protests and demonstrations, and product boycotts often are used to pressure these companies to change their practices. A large and well-run consumer action campaign can have impressive results.
Courtesy of Johanna Marxer
Ducks in oil spill
Courtesy of David Wilmott
Courtesy of David Wilmott
Anti-trapping protester
© getty
© getty
Sweatshop labour: The GAP, similar to most clothing manufacturers, outsources the production of its clothing to factories around the world. Many of these are considered
sweatshops in which workers have few rights, long hours, low pay, and challenging working conditions. Child labour is used in many sweatshops.
In the 1990s, consumers began to protest conditions in The Gap's 3010 factories in 50 countries. The The GAP sells primarily to young people who often have a strong sense of justice. These young protesters organized demonstrations and boycotts of The Gap's clothing. Although the boycott did not have a huge effect on The Gap's sales, the negative publicity was not something any large corporation wanted. In response, The GAP began monitoring its factories, and last year released a 40-page report publicly on The Gap's website to describe some of the problems their workers face and some of the actions taken to resolve these issues.
Schools and the "No Sweat" campaign: This movement began in California as a way of protesting sweatshop labour. The campaign has led to schools and universities purchasing university and school licensed ball caps and clothing made in sweat-free factories — in other words, factories that pay workers a fair wage and provide good working conditions. Currently, twelve Canadian universities and the cities of Calgary, Vancouver, and Toronto have rules to ensure that branded clothing they sell is made by those who earn fair wages. Sweat-free clothing is usually about the same price as other clothing, but its purchase demonstrates ethical consumption and good global citizenship.
Canada does not require that labels show which clothing manufacturers are considered ethical manufacturers, but other countries like Australia do.
A corporate perspective: The leaders, shareholders, and operators of multinational corporations believe that the capitalist system benefits everyone. Their main objective is profit for their shareholders. They believe that the laws that govern workers in other countries are the concern of the governments of those countries. Often, they believe that, by outsourcing the production of clothing and other goods to the developing world, not only do they save money but they provide new ways for people in the developing world to earn income. They can pass along these savings to consumers, who usually want cheap prices. From the corporate perspective, the corporations are obeying the laws of the countries where they operate and they provide needed employment.
What do you think?
If you find undesirable conditions, you might decide to start your own campaign to encourage your school or group and its leaders to support your cause. Inform people about the issue and convince them to agree to change their policies about buying.
See the Sweat-free Communities website for how to do it!
In the 1990s, consumers began to protest conditions in The Gap's 3010 factories in 50 countries. The The GAP sells primarily to young people who often have a strong sense of justice. These young protesters organized demonstrations and boycotts of The Gap's clothing. Although the boycott did not have a huge effect on The Gap's sales, the negative publicity was not something any large corporation wanted. In response, The GAP began monitoring its factories, and last year released a 40-page report publicly on The Gap's website to describe some of the problems their workers face and some of the actions taken to resolve these issues.
Schools and the "No Sweat" campaign: This movement began in California as a way of protesting sweatshop labour. The campaign has led to schools and universities purchasing university and school licensed ball caps and clothing made in sweat-free factories — in other words, factories that pay workers a fair wage and provide good working conditions. Currently, twelve Canadian universities and the cities of Calgary, Vancouver, and Toronto have rules to ensure that branded clothing they sell is made by those who earn fair wages. Sweat-free clothing is usually about the same price as other clothing, but its purchase demonstrates ethical consumption and good global citizenship.
Canada does not require that labels show which clothing manufacturers are considered ethical manufacturers, but other countries like Australia do.
Reflect
A corporate perspective: The leaders, shareholders, and operators of multinational corporations believe that the capitalist system benefits everyone. Their main objective is profit for their shareholders. They believe that the laws that govern workers in other countries are the concern of the governments of those countries. Often, they believe that, by outsourcing the production of clothing and other goods to the developing world, not only do they save money but they provide new ways for people in the developing world to earn income. They can pass along these savings to consumers, who usually want cheap prices. From the corporate perspective, the corporations are obeying the laws of the countries where they operate and they provide needed employment.
What do you think?
| Does your school or sports team buy items of clothing? Do you want to display your allegiance to your school or team with an item made by a child or someone who worked in a sweatshop? Would you rather support an end to child labour as well as fair and safe working conditions? Check the label and research the manufacturer. |
If you find undesirable conditions, you might decide to start your own campaign to encourage your school or group and its leaders to support your cause. Inform people about the issue and convince them to agree to change their policies about buying.
See the Sweat-free Communities website for how to do it!