The role that global companies play in human rights depends on their market strategy. A market building strategy typically does not directly violate human rights. A company that employs this strategy will make significant investments unlikely to produce immediate profits. As a result, these companies tend to have a bigger commitment to the people and the countries that they operate in. Two examples of companies that follow a market building strategy are BASF and Motorola.
A cost-minimizing strategy is the other kind of strategy that a company may follow. This strategy usually drives the company to increase profits at the employee’s expense. If a company can produce their product at a lower price if they manufacture it in another country, they will due to competition. However, what allows them to produce their products at a cheaper cost is their disregard for the human rights of their workers. Two examples of companies that follow a cost-minimizing strategy are Levi and Nike.
Very accurate, shows that large, rich corporations have no problem with infringing on the worker's rights to turn a larger profit.
ReplyDeleteI also mentioned NIKE as a cost minimizer, although I didn't know BASF or Motorola were market builders. People tend to notice when a company is violating human rights like NIKE is rather than when a company is doing what they're supposed to.
ReplyDeleteI agree with sean on the point that it is important to bring up what companies are promoting human rights.
ReplyDeleteI agree with all of you. I used Nike as an example too. My question is, what other companies could I use for an example?
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