In today’s class we watched the video on supply chain management in floral industry, and I immediately recalled several documentaries I watched on the exploitation of workers in developing countries for roses and diamonds. The rise of floral industry in South American countries has been beneficial for the local economy but not by much as it may appear. Some refer to the product as ‘blood roses’ similar to ‘blood diamonds’. The inexpensive labor and lack of employment laws and regulations has led to massive exploitation of workers who have no choice but to work. They are payed $7-8 a day, work over 12 hours and are exposed to health threatening chemicals.
Something like this affects public image of a company, it can completely ruin the perception customers have and decrease in sales is inevitable. Building a brand is difficult, but having to rebuild it even more so, as bad press can ruin the company. In past, companies were able to get away with this kind of behaviour, but fortunately today with the internet accessibility, and the use of social media information spreads fast. Naturally, customers don’t want to be associated with the negative image company has and simply replace it with another product provider that is known for its responsible and ethical practices. This is true for consumers that actually care and are knowledgeable about the issue, but it the growing trend of green movement and the ethical and social responsibility indicates that more people will be aware of it.
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