The world is becoming more and more interconnected and firms are facing evolving challenges. With the increased globalization, companies are competing not only within their national borders but also against multinational companies. This heightens the pressure stressed on all the businesses to reduce their costs and increase their competitiveness. Large multinational companies (MNCs) turn their attention towards the developing countries to deliver their production in a more cost effective way. MNCs have established wholly owned subsidiaries in China, Indonesia and other parts of South-East Asia and outsourced certain elements of the supply chain to countries like India and to Pakistan. Coupled with globalization is the growing number of issues occurring with MNCs utilizing the child labor market in the developing countries. Most international organizations, such as the Fair Labor Association (FLA) and the Ethical Trading Initiative (ETI) (Levi Strauss, 2007) are mostly concerned about long working hours, minimal wages and child labor.
[...] In Pakistan, the program aims at preventing and eliminating the child labour in the clothing industry but also labour in the stitching of footballs. The used method is to place and monitor children in educational facilities (Kari Tapiola, 2003). However, Kari Tapiola, the Executive Director of the International Labour Organization, argued “given that the industry will continue to be influenced by global competition trends, it should be natural that individual companies will continue to search for competitive advantage through the observation of fundamental principles and rights at work” Types of child labour It is important to note that identifying child labour is not as simple, as there are various types of child labour (Bachman, 2000): DIRECT: A firm or enterprise employs children directly. [...]
[...] When referring to culture in case of Pakistan, it is inevitable to mention the impact of Islam, the religion in Pakistan, which shapes the norms and values. These underpin the traditions embracing high obedience to hierarchy, gender differentiation in administrative roles, nepotism, corruption, giving importance to warmly welcoming guests (Islam, 2004; Black, C., 2003). On one hand, those in the Middle East are high context, indirect communicators. On the other hand, Australians' correspondences are low contextual, personal and direct (Hall, 1976; Hall and Hall, 1997). [...]
[...] CCC should adhere to the principals set out by the Global Alliance and follow the improvements undertaken by industry veterans, like Nike and GAP, and support their young labour force in their efforts to minimise their costs. We should aim to transform the concept of the inaptly named “sweatshop” from a simple factory, producing cheap goods that are to be exported with a huge price mark-up, into an organization that can give back to the children that facilitate the cost savings for the MNC. [...]
[...] and Hall, M.R Concepts : Underlying Structures of Culture, Lane, H.W., DiStefano, J.J., and Maznevski, M.L., International Mangement Behaviour, 3rd Ed. Cambridge, MA : Blackwell, Publishers. Hofstede, G Motivation, Leadership and Organizations : Do American Theories Apply Abroad?, Organizational Dynamics, Summer, pp.42-63 ILO http://www.ilo.org/public/english/region/asro/newdelhi/ipec/resources/pakist an.htm, Last accessed Islam, N Sitarish, sycophants, power and collectivism: administrative culture in Pakistan, International Review of Administrative Sciences 70 : 311-330 Kari Tapiola, Executive Director of International Labour Organization Conference on the Future of Textiles and Clothing after 2005, Geneva Brussels, 5-6 [...]
[...] This paper highlighted industry trends in the garment industry regarding child labour, the features of the culture and labour market of Pakistan. It illustrated how to consider cultural differences when preparing for discussions with our employees and business partners from Pakistan. This essay proposed a recommendation for solving the arisen child labour issue successfully in a culturally sensitive way that benefits both parties. We provided a solution by offering young age personnel work opportunities in order to support their living and in the same time contributing to their education. [...]
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