Business Ethics – H&M
In November 2013, clothing retailer Hennes & Mauritz proposed an objective that seemed to pursue the interests of society in order to boost the industry. Following the garment factory collapse in Bangladesh that killed over 1000 people, H&M announced that they would “pay a fair ‘living wage’ to 850,000 textile workers by 2018.” This consensus results from the government’s lack of action pertaining to wage development in third-world countries.
Despite the good intentions of the company, the corporate executive must recognize the extra responsibilities he or she will be entrusted. Typically, the federal government decides on and imposes the wages for the country. According to American economist Milton Friedman, when a businessperson attempts to act on his or her own, because the government is slow, he or she now takes on the following responsibilities: to choose the taxes, to regulate the distribution of the money, and to decide how the wages will reach the people. H&M’s proposition is guided by good social interest and can be considered ethically correct. For thousands of workers to receive a decent wage in the next four years can only be accomplished through the company’s willingness to pay more money to the suppliers and the cooperation from the other countries. However, minimum wages in Bangladesh and the rest of Asia have not risen in the last few years, possibly delaying the company’s ultimate target.
http://www.theepochtimes.com/n3/372294-hm-to-pay-all-textile-workers-living-wage-by-2018/
References
Yang, Catherine. “H&M to Pay All Textile Workers Living Wage by 2018.” Epoch Times. N.p., 25 Nov. 2013. Web. 10 Sept. 2014. <http://www.theepochtimes.com/n3/372294-hm-to-pay-all-textile-workers-living-wage-by-2018/>
Zimmerli, Walther, Markus Holzinger, and Klaus Richter. “The Social Responsibility of Business Is to Increase Its Profits.” Corporate Ethics and Corporate Governance. New York: Springer, 2007. 173-178. Print.