legally. However, the theory states that reasonable rights of stakeholders like customers and employees are not supposed to be undermined or sacrificed by such rights or be deprived by owners to gain profit(Wilson,2005). Owners of business should not be as an instrumental stakeholder theorist. In the scenario, Walmart sacrifices safety of almost 3000 working employees to satisfy owners’ economic profit with utilitarianism managerial mindset.
Deontological theory.
The major point of deontological theory is that managers of corporations are morally obligated to treat its employees equally and provide welfare such as safety protections and transportation convenience to satisfy various needs which is the content of normative stakeholder theory. Specifically, clothing workings evaluated from plaza because of crackers have a say to refuse to go back to work instead of being at risk of losing wages(Lozano and Pandi,2005).
Market theory.
From the economic point of view, actual markets motivate buyers and sellers to operate together with a result of lowering costs(Scalet 2014). The history of commerce is a history of remarkable innovations to lower transaction costs.A market wage is still a good choice than unemployment (Friedrich Hayek,1978). Walmart as an American company is one part in capitalism market in which government have less power to control compared with communism such as China. Government of Bangladesh have less power of economy market control which could not protect workers of its own country.
Meanwhile, even the pay could not cover normal living expenses, it is still the best choice of the poor and unemployment.
1. Political role of corporations
It can be concluded that there is no agreed meaning for corporations’ political responsibilities(Fooks et al,2013). To be more specific, Walmart as a multinational company has grown into an extremely powerful corporation based on its sheer size and wealth which result in amplifying its influence in ethier political area or social sphere. In contract, power of government seems to be diminished and non-government organization becomes more active at the same time. However, corporate social responsibility to various stakeholders has increasingly become a heated issue in nowadays (Garriga and Melle,2004). Research on corporations’ political power postulates a narrow normative theory,in contract with the other string of theories which are more descriptive in nature .
2. Sustainable supply chain
As we all know, companies operate in a highly competitive market environment where cost reduction in supply chain operations is the key basement of gaining large profit espescially compared with commercial brands(Carbone et al,2012). Therefore, developing countries with weak legal framework and cheaper labor is an appropriate option.
From doing research ethical theories on supply chain clearly focus on issues such as environmental pollution and sustainability which pay less attention to social benefits(Friedman.1970).
Recommendations
1Bangladeshgovernment practices
Base on the social justice theory, all government policy should aim to build a sustainable legal framework. It is discovered that some illegal sweatshops of clothing industry are ignored by government officers. Besides, government should establish new
political strategy to gain more power to involving the market operation to let it better off in certain circumstances. Furthermore, Bangladesh should build social welfare for poor and unemployed people to give them a choice to not to be servant of certain unethical clothing industry. 2 supplier practices
Walmart should invest essential fund to employ qualified safeguards to educate workers withprofessional training and monitor supplier activities in order to meet both globally accepted standards and local regulations(Huffington Post,2014). It can also collaborate with the local government to carry out injury benefit project and share risks with all business owners. Moreover, Bangladesh’s solution is an example to other developing as it will alert all developing countries about what might happened in global business (Cruz, 2013).
3 Cooperation among stakeholders
Government, multinational companies such as Walmart,non-government organizations and other potential stakeholders can work together to tackle Bangladesh’s clothing industry.Non-government organizations should quit their autonomy and operate with profit-making companies to be powerful enough in order to enact laws and monitoring each other. Stakeholder theory focus mainly on addressing problems of the ethics of capitalism and managerial mindset. (Houngbo, 2014)).
Conclusion
To conclude, based on the sweatshop of Walmart and the Rona building collapse accident, findings extracted from literature includes human rights,corporations’ political role and sustainable supply chain. To prevent the phenomenon occurring second time,
several recommended behaviors of supply chain,government,non-government
organizations and multinational corporations should cooperate and monitor all together to boost business in an ethical sustainable way.
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