Global Business labor practices
Global Business Labour Practices
Global companies faced some myriad challenges when practising in developing countries. Most of the developing economies are used to most illegal practises, for instance, forced labour, corruption, Long working hours, low payments, child labour, gender inequality and violation of indigenous people rights. When entering such markets, the global companies are faced with the dilemma of abiding by their core principles of respect to humanity and commitment to labour standards or be assimilated to the conditions in the hosting countries(Robb and Bailey). Tax evasion, financial mismanagement, racketeering, and money laundering have severely challenged hosting nation’s stability, governance efficiency, and an increase in national risk.
Issues faced by Global Businesses from Illegal labour practices in Emerging Economies
Any work that harms the well-being of a child by hindering his/her education, future livelihood and development can be referred to as child labour. The ILO provides the frame work or laws to regulate child labour by defining a clear line between acceptable and non-acceptable that encompasses the minimum age for one to be employed. Generally, the minimum age this age shouldn’t be less than that of school completion. Global businesses are forced to adhere to these standards while practising in developing countries. The company has to look into the prevalent of child labour present in their chain of supply(Robb and Bailey). Most notably, in areas that child labour is comparatively common and where it is evident enough that when they remove income-generating opportunities, most children will be pushed deep into poverty and other kinds of exploitation. However, these practices are norms in mot developing countries where they utilize the services of children at a cheaper cost as compared to global companies that strictly follow ILO standards. The example is India where children are widely used in supply chains.
On the other hand, global companies face it rough in developing countries due to massive corruptions in hosting nations. For instance, local companies may opt for corrupt deals with government officials when awarding tenders and other deals. With such illegal practices, global companies are left with no option but to abide by the practice or leave that market(Nelson). It is difficult competing with such local companies with presence of unfavourable illegal practices.
Therefore, the big question remains, how a company can positively chase commercial practices in such countries and at the same time ensuring it doesn’t compromise their commitments on human rights or its anti-corruption. For instance, this is common in developing countries like Nigeria and Kenya.
Long Hours of Working
Global companies are made to comply with relevant ILO standards as well as labour laws of hosting nations that relate to hours of working within supply chains. Most commonly when workers are compelled, do not have a choice or function in the context that allows them to consent long hours of working(Grayson and Hodges). In developing countries, most of the workers local companies exploit include migrants, who are ready to work for longer hours for them to earn a living or in maximizing their incomes. As well, global companies find it difficult in addressing this issue in countries where it is a culture to work for long hours or where governments don’t restrict working for long hours. Countries with such practices include Bangladesh.
In developing countries, global companies face the dilemma in identifying and addressing the incidence of forced labour in their chains of supply. It is so because they face difficulties in defining and detecting this illegal practice. The practice is widely spread in some developing countries, and it is a usual practice that is conducted by local companies hence giving them an upper hand over rival global companies(Nelson). The local companies use forced labour where some categories of folks are at higher risks than others for instance: Women, indigenous people, children, informal workers, and migrant workers. When conducting forced labour, the local companies aim at making large sums of money, the government’s lack of capacity in addressing the issue and victim’s lack of voice to air their grievances since most are poor. An example includes countries in Gulf region, for example, Saudi Arabia.
Solutions to risks of markets in emerging economies
In order to accurately counter problems discussed in this paper, respective countries need to focus entirely on compliance management, ethical dilemma, and most importantly, on education. It is quite obvious that when some illegal businesses are contained legally, there will be healthy competition in the markets. Nevertheless, through this measure, there will be a significant drop in corruption(Grayson and Hodges).
It is also important for law enforcement agencies to be authorised to take actions against Mafioso who practice these illegal practices like corruption, child labour, forced labour and long working hours be punished. Furthermore, private sanctuaries need to be ethically and honestly exposed by media since the law provides that-no one is above(Nelson). There should also be constant tracking of physical movement of products; the assessment should be thorough.
Robb, Stuart, and Alan Bailey. Risky Business: Corruption, Fraud, Terrorism and Other
Threats to Global Business. Rev. ed. London: Kogan Page, 2003. Print.
Grayson, David, and Adrian Hodges. Everybody’s Business: Managing Risks and
Opportunities in Today’s Global Society. London: DK, 2002. Print.
Nelson, Brian L. Law and Ethics in Global Business: How to Integrate Law and Ethics into
Corporate Governance around the World. London: Routledge, 2006. Print.