In this paper I am going to cover the cultural and ethical factors involved with a company by the name of Levi Strauss and Company and the issues the company faces when attempting to expand to another country. Expansion is a goal that all companies want to achieve; because there are a lot of benefits a company can receive when expanding, makes more money, getting into the stock market, lower cost for part and labor, and most of all becoming a well-known name brand. With expanding it is not just glitz and glamor there are moral cultural and ethical issues to face. When bring a product and organization to another country. Cultural Issues when Facing a Global Organization
Levi Strauss and Company is a well-known clothing brand. This organization was originated in North America, state California City San Francisco. Levi Strauss and Company manufactures clothes in 110 countries outside of the US; and as a result of that t50% or more of the organizations profits came from overseas. Levi Strauss and Company has had to face some of those ethical and cultural issues for the public and exterior partner companies. This issue stems from factories in Bangladesh because there are reports of the organization having under age workers. In Bangladesh children working at a young age in common.
In their soil this is not an issue because without the children and parents working there is not enough money to support the family. The issue in this situation is in Levi Strauss and Company terms and engagement is say that the organization is not allowed to higher or work kids under the age of 16 because in the US it is illegal. Child labor laws is an issue that always get the media, workers right unions, stock holders and investment firms upset. (Levi Strauss and Co., 2010). The Ethical Perspectives
Ethical perspectives set by last Levi Strauss and Company comply with the majority of other global organization. To be considered ethical all global businesses must follow the following.
•Emphasizes accountability for anticipating and responding to ethical crises
•Encourages participation in decision making
•Aligns personal, professional, and organizational aspirations and behaviors
•Promotes courageous efforts to identify and resolve ethical dilemmas
•Fosters dialogic communication
•Establishes transparent structures, policies, and procedures As of now the only standards being upheld and practices by Levi’s are A Global Anti-Bribery Policy
An Anti-Corruption policy (Shaw, W. H., & Barry, H.,2001)
A Worldwide Code of Business Conduct
2010 was not the only year Levi Strauss and company had issues complying with child labor laws; back in 2008 the company has issues with their cotton fields in Uzbekistan. The organization has not tried to cover up any of the information that has been found; in fact the company said they have been looking into changing that correcting that situation. That situation ended in Levi Strauss and Company not accepting any fabric from Uzbekistan and all of their factories. Doing this solves the issue in regards to the company but this does not stop Uzbekistan form doing the same thing with other countries.
Levi Strauss and Company has been good about handling their issues when it comes to violating child labor laws. In most cases when the organization finds out this is happening the first thing they do is fire all of the underage workers and make sure they cannot be rehired until they reach the proper age limit. Another step Levi Strauss and Company has taken is education students and teachers of the child labor laws to avoid future issues with child labor laws. Ethical Perspectives in Different Cultures
When a business has expanded to over 100 countries facing ethical and cultural issues is something that can’t be avoided; and sorry to say child labor laws are not the only ethical or cultural issue the organization has to deal with in the global market. Some may try to compare this to a discrimination issue, because this topic has become popular today. In most cases decimation consist of religion, race, age, or gender. However that is just in the US because in other countries businesses are straight forward when it comes to discriminating and it is not viewed as illegal.
This raises the question should businesses adapt to the ways of the country that they are doing businesses in? But if this is done will it lower the standers of the organization and the relationship between the public and the business. Aside from child lobar laws corruption is another issue Levi Strauss and Company has to face. The organization have factories in Vietnam and just like all other businesses in Vietnam there is a tax to be paid; not a government tax but a tax form corrupt people in the country, it is said that 67% of businesses in Vietnam have to pay bribes. (Unruh & Arreola, 2010). These are just some of the issues that a business has to face when they expand to other countries. it is clear to see the different ethical stander set be different countries in regards to Levi Strauss and Company.
This organization is not different than any other working outside of the US; they must commit to fixing the issue that come about when operation a business in another country and maintain the ethic codes set by the organization. Levi Strauss and Company has ablations to their employees, customers, and the public. They took a vow to operate their business in an ethical manor. Just talking the talk is not enough Levi Strauss and Company need to stay on top of everything to avoid child labor and all other issues when running a business outside of the US Conclusion
In all there are a large number of businesses they have traveled outside of the US in efforts to make more money. What the businesses need to work in is businesses sticking to ethical standers; and making sure that all standers being set by the company are completely being followed. The best thing a business can do is stay up to date with all methods of operation in countries outside of the US. Also being properly educating the key players in the organization is how to be successful in a global market.
Adler, I. (2006). Double Standards. Retrieved from http://www.mexconnect.com/articles/1780-double-standards Levi Strauss and Co.. (2010, April). Case Study: Child Labor in Bangladesh. Retrieved from