MGT 672 – Module 3 Critical Thinking. Student Advocacy and “Sweatshop” Labor: The Case of RussellAthletic
Using the Six Steps of Decision-Making framework, 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:
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?
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.
Implementation of alternatives: Which alternatives would be best for outsourcing for companies in the United States?
Evaluation and feedback: Have your recommendations been implemented in other countries? Are they working? What has been the outcome?
In this course, you will have six Critical Thinking assignments where you will respond to assignment questions to develop an essay. Essays 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 are never a part of the content minimum requirements.
Use academic writing standards and APA (7th ed) style guidelines.
Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.
Review the grading rubric to see how you will be graded for this assignment.
Outsourcing is a common business strategy that is adopted by many corporations to increase profitability and reduce costs. Developing countries are usually the destinations for outsourced labor due to low labor costs, making it a legitimate business strategy. However, outsourcing to developing countries poses significant risks to corporations as it can lead to sweatshop scandals. In this essay, we will use the Six Steps of Decision-Making framework to identify the factors to consider when deciding to outsource labor to developing countries, diagnose and analyze the causes of sweatshop scandals, develop alternatives, select the desired alternative, implement the alternatives, and evaluate and provide feedback.
Step 1: Recognize Decision Requirement
When corporations consider outsourcing labor to developing countries, they should consider the following factors:
Cost: Developing countries are usually the destination for outsourced labor due to their low labor costs. Corporations should consider the cost of labor, transportation, communication, and other costs associated with outsourcing.
Quality: Corporations should ensure that the quality of outsourced labor is consistent with their quality standards. Poor quality can lead to reduced customer satisfaction and increased costs associated with product recalls and rework.
Legal and Ethical considerations: Corporations should ensure that they comply with legal and ethical standards in the destination country. This includes compliance with labor laws, health and safety regulations, and human rights standards.
Reputation: Corporations should be aware of the impact outsourcing can have on their reputation. A sweatshop scandal can have a significant impact on a corporation’s brand, leading to loss of customers and revenue.
Step 2: Diagnosis and Analysis of Causes
Sweatshop scandals are caused by a combination of factors, including low labor costs, weak labor laws, and poor working conditions. In many developing countries, labor laws are weak and not enforced, leading to exploitation of workers. Poor working conditions such as long working hours, low wages, and unsafe working conditions are common in sweatshops.
To avoid sweatshop scandals, corporations can adopt the following strategies:
Implement and enforce labor laws: Corporations should ensure that they comply with local labor laws and implement internal policies and procedures to protect workers’ rights. This includes providing safe working conditions, reasonable working hours, and fair wages.
Use third-party audits: Corporations can use third-party auditors to monitor working conditions and ensure compliance with labor laws and ethical standards.
Collaborate with stakeholders: Corporations can work with stakeholders such as labor unions, non-governmental organizations, and government agencies to improve working conditions in developing countries.
Step 3: Development of Alternatives
To avoid sweatshop scandals, corporations can consider the following alternatives:
Implement and enforce labor standards: Corporations can implement and enforce labor standards in the destination country that are consistent with their home country standards. This includes providing safe working conditions, reasonable working hours, and fair wages.
Use fair labor practices: Corporations can use fair labor practices such as paying a living wage, providing benefits, and allowing workers to form unions.
Diversify suppliers: Corporations can diversify their suppliers to reduce the risk of sweatshop scandals. This includes sourcing from countries with better labor laws and working conditions.
Step 4: Selection of Desired Alternative
To select the desired alternative, corporations should consider the following:
Cost: The alternative should be cost-effective and should not significantly increase the cost of production.
Quality: The alternative should not compromise the quality of the product or service.
Legal and ethical considerations: The alternative should comply with legal and ethical standards in the destination country.
Reputation: The alternative should not harm the corporation’s reputation.
Step 5: Implementation of Alternatives
To implement the chosen alternative, corporations should:
Develop policies and procedures: