Weavers of clothing by Arthur & Henry (image from www.theguardian.com)
With the occurrence of events like the building collapse at Rana Plaza in Bangladesh in 2013, questions have arisen relating to the safety and business ethics of clothing companies manufacturing in Asia. But with companies like Arthur & Henry existing who aim to produce clothing ethically, it must not be presumed all Asian clothing factories are unethical.
Like the Stakeholder Theory suggests, Arthur & Henry’s business creates value not only for financiers, but for the customers, suppliers, employees and communities around. Production is done near cotton fields in India where locals need employment, and suppliers are treated well and given decent wages. This may all sound too good to be true, but Arthur & Henry’s business proves to be one that is maximizing benefit to workers and most importantly producing profit for financiers.
Although the majority of us desire to purchase low cost clothing, it is important to evaluate the possibility that many low cost clothing is produced where workers are being exploited and businesses are not profiting in ways which can support locals in poverty-stricken countries. Maximizing profit will always be inevitable for a business, but in the long run, an approach that is more ethical may prove to be more sustainable while creating value for all its stakeholders.
Reference:
Coorporateethics. “What is Stakeholder Theory? – R. Edward Freeman.” Online video clip. Youtube, 1 October 2009. Web. 10 September 2014. <https://www.youtube.com/embed/bIRUaLcvPe8>.
Evans, David. “Not all Asian clothing factories are unethical.” The Guardian. Guardian News and Media, 10 March 2014. <http://www.theguardian.com/fashion/grey-fox/2014/mar/10/ethical-asian-clothing-factories-arthur-henry>.
I like your point that us, the consumers also have to make ethical business decisions such as where we spend our money. Not only in clothing stores but any business that doesn’t fully accept their social responsibilities. If the consumers make ethical choices it acts as feedbacks to the stores that choose to exploit their workers and not use their influences in positive ways.
I also share your point of view concerning the customers’ role to choose the right product and not the cheaper product. However, we must not always assume that cheaper products always come from firms exploiting workers, as lower cost may also result in bulk buying of raw materials for example.
Adding to what Kaijanz, it is true that even though we do not directly support improving working conditions in developing countries like Asia, customers’ choice in purchasing products from ethical businesses can have an impact on the firms’ decisions when considering ethical actions. It encourages those firms to keep up with their ethical behaviour which may result to other firms realizing that acting unethically is a competitive disadvantage for them.
Very well-presented argument. You got me convinced! A+