Archive for the ‘China’ Category

Should Adidas do what Reebok did?

September 20, 2007

 

In 2002 Reebok, the sportswear company purchased by Adidas last year, experimented with the setting up of worker’s unions in China. They were carefully applauded by some but also criticized for interfering so heavily in their suppliers affairs in order to “appear good”.

 

Recently, Peter Lee, a labor activist, investigated one of these factories five years on, just before the unions reps were due for reelection. The report reflects some of the disappointment among workers with the union, which only seems to organize social events and barely represents the workers. The union will likely not hold an election but instead appoint new members itself, including the unpopular union leader.

Stephen Frost, writing for Hong Kong based CSR Asia Weekly cites this report, openly asking whether it could really be expected that anything else but this would happen. Worker’s unions should be worker owned, not externally implemented or demanded.

Of Reebok’s role he says, somewhat harshly perhaps, that Reebok’s Chinese Trade Union Experiment is yet another example in a long line of examples that demonstrate how workers’ aspirations are repackaged into forms that suit external agendas.” What can a company do in environment were organizing an independent labor union is already difficult, if not impossible?

He answers that the new client Adidas should do everything within its power to make decent work possible, such as ensuring decent workplace conditions and place orders in such a way that the factory can actually comply with local labor law.  This would allow somewhat normalized relations where industrial action doesn’t automatically entail missing a very tight order deadline.

I would tend to agree with this. A union should be independent and not set up under the auspices of a client. This, of course does not stop the necessity of an enabling environment, and a clear picture of the issue suppliers and their workers are facing. Arguing along the lines of Oxfam’s Offside! Report that transparency is key in this respect.

More and more brand companies are releasing their lists of suppliers, but “Transparency does not, however, end with the release of supplier addresses”, companies will still be asked about their sustainable supply chain management efforts. People will want to know about the actual improvements being realized for workers, or indeed, what improvements workers can realize for themselves, through unions. I think that getting this type of information and presenting it is part of what a supplier sustainability report can do, on its own, or as part of the brand company’s communication efforts.

Make “doing the right thing” concrete: Report!

September 11, 2007

With the recent recalls of toys and other products made in China (Mattel issued its third recall last week), the “made in China” brand is taking a hit. In a column in Ethical Corporation Magazine by Chandran Nair he rightly asks: “why is this so surprising?”. Chinese manufacturing thrives on low prices and often low quality, producing for US and European companies. Pressure for lower prices are an invitation to cut corners.

His main argument is that despite outrage in the West there is clearly a shared responsibility between the government and buying companies: “outsourcing responsibility doesn’t work”, to quote the title of the column.

In the case of lead paint in toys and loose magnets, the flaw was caught relatively easily: it was something that could be tested on the products themselves. What about economic, social and environmental issues which are also under pressure due to a similar mentality?

Mr. Nair perceives that “[t]he situation presents challenges with a strong moral core that rests on individuals and companies doing the right thing.” The solution he presents is the extension of Nike-style full disclosure of suppliers: “Such lists invite partnerships that pave the way for full, open co-operation on labour, environment and business issues.”

In many sectors such transparency is very feasible. To add a specific step to Mr. Nair’s train of thought: sustainability reporting by suppliers could be a great tool to start dialogue and partnerships. This will benefit not just product quality and safety, but will also start to address the social and environmental issues very concretely.

“Doing the right thing” is premised on knowing what’s right. A reporting process is a way to find out and plan and communicate how to move forward.

Read Chandran Nair’s full column here:

http://www.ethicalcorp.com/content.asp?ContentID=5359