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  • Essay / Walmart Corporation

    A Walmart spokesperson said, “While unions may be appropriate for some companies, they have no place at Walmart. » This thesis questions the business models of retail giants and raises the question of whether external factors such as government and consumers can influence them to become less socially responsible. In our context, the key concept of corporate social responsibility (CSR) is defined as “whereby companies voluntarily integrate social and environmental concerns into their operations and interactions with their stakeholders” (European Commission, 2002). In addition, their current business models have notable strengths that often come at the cost of compromise with other aspects. The following examines the establishment of different agreements by institutions and their results. Additionally, we will analyze the impact of external factors on the company's current operations and actions. To conclude, the analysis will attempt to explain the thesis that Walmart has failed to ensure respect for labor rights in supply chain factories. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay Non-governmental organizations (NGOs) and various institutions have contributed to a multitude of reforms whose main objective is to push major clothing retailers to adopt corporate responsibility in their operations and human rights practices. In fact, large companies benefit from the transnationalization of production, which is simply the process by which companies have decentralized their factories to developing countries like Bangladesh, Indonesia or India, where the cost of labor -labor is cheaper, which has often led to the bad habit of neglecting human rights. Even if they outsource their production, they should be responsible for supplier practices, but to what extent? According to the United Nations Guiding Principles, businesses have a responsibility “to respect human rights wherever they operate and regardless of their size or sector of activity” (United Nations, 2011). Many different agreements, such as the Global Framework Agreement and the Code of Conduct, have been drafted and signed by hundreds of giant retailers, but this has not been enough in terms of changes, as seen in of the Rana Plaza building accident in 2013. Before that, no information was public. available and therefore we could not verify whether labor rights were respected in factories in the supply chain, even if they were required to do so. After the Bangladesh factory accident that killed more than 1,100 workers, governments thought it would be a turning point for workers in the garment industry. As supply chains reached a critical point, “human rights due diligence” was put in place in the belief that this would have a positive impact on retailers' actions. We thought that this accident would allow large retailers, in charge of their suppliers, to contribute more to the improvement of salaries and working hours achieved by institutions and NGOs. Conversely, certain retailers, such as Walmart, involved in the accident and therefore responsible for what happened, have decided to decline all responsibility. In fact, Walmart has not hesitated to assert that the supplier is responsible for everything that happens in the factories, with the results of facility audits being passed to it. OfPlus, following the accident, more than 200 brands, except Walmart, signed an agreement, drafted by Europe IndustriALL and UNI Global Union, to prevent any future disasters in Bangladesh's textile industry by improving safety factories. In fact, Walmart decided to develop its own code of conduct instead of signing the Bangladesh Accord on Fire and Building Safety, believing that it is more effective and will produce faster results. Clear initiatives regarding decent wages and poor safety standards have been announced, clearly demonstrating a lack of involvement in this process. Although many companies have stated that labor rights are respected in their supply chain, they have simply failed to take the necessary steps to ensure this is respected. From this analysis, we assume that more effective actions on the part of the government would have changed the way companies work. There are two main external factors that directly impact the way large clothing retailers act and operate. Retailers are truly aware of this controversial issue, particularly regarding respect for the human rights of their employees in their supply chains and the responsibility they have in this regard. As analyzed previously, corporate actions are not enough, even if supported by NGO agreements and frequent prevention, because they often fail to improve wages, working hours and workers' rights. Governments are willing to make fundamental changes in supply chains because large retailers are not acting as they should. They are aware that the economy suffers from a lack of responsibility in this sector and have therefore not hesitated to take action. They decided to dedicate, for the first time, the 2016 International Labor Conference to work in supply chains. Governments have the primary responsibility to ensure human rights are respected within these supply chains, because "people who live under a democratic government do not have to worry about human rights at all , because it is the sole duty of this government to guarantee human rights” (The Journal of Ethics, Vol.4, Nos. 1-2, 2000). Businesses benefit from the absence of legally binding standards and this is what governments are seeking to change. We can take the example of Quicksew and Canteran Apparel, two Walmart suppliers, who are abusing the law. Governments play a vital role in labor regulation and attempt to regulate corporate behavior at the national level, but they have often failed to supervise factory labor standards, although they do so with varying degrees of seriousness and efficiency. This is because host countries like Bangladesh, India and Cambodia are willing to attract foreign investments to develop their global economies. But how? These countries offer flexible labor markets, but this should not automatically imply mistreatment of factory workers. A more effective application of the ILO convention, ratified by a majority of countries, would prevent another disaster like that of Rana Plaza and help clothing retailers realize the urgency and importance of the current situation. Unfortunately, this has not come to fruition within Walmart's supply chains, as the Asia Floor Wage Alliance reports "persistent rights violations." This has led to a misunderstanding as to why large.