Global Issue: Case 5: Application of Standards of Engagement to Child Labor
Adidas is known for manufacturing shoes and clothing. They do not directly produce their products but has many suppliers worldwide. With so many suppliers for their footwear, Adidas had to establish some kind of control for their footwear factories in regards to labor practices and issues surrounding safety, health, and environment (Beauchamp, Bowie, & Arnold, 2008).
Adidas has been subjected to attacks by activists in regards to their manufacturer's working environment. They have discovered that some of their suppliers are not operating at the standards that the company has set. Adidas has their Standards of Engagement (SoE) which aims to ensure that all its suppliers factory are safe and fair place to work. The SoE has been updated and patterned after the ILO conventions. This states that all sporting goods industries must pay attention to the following labor, safety, health and environmental issues (Beauchamp, Bowie, & Arnold, 2008):
• Freedom of association and collective bargaining
It is widely known that Asian supplier factories have poor documentation, wages are lower than minimum wage, they ignore the maximum working hours, and they dock wages as punishment for violating working rules and abuse workers. So, Adidas has issued their first audit to determine if their suppliers are complying with the SoE. Adidas' SoE are their core values that they measure themselves as well as their business partners. Within their SoE, there are several principles that their company, business partners and suppliers must abide. Without some type of monitoring system, it would be hard for Adidas to enforce their core values. Therefore, an
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