Académique Documents
Professionnel Documents
Culture Documents
Germany
Table of Contents
1.0 Identification of case issues...............................................
...............................................................3
1.1 Background .................................................................
......................................................................3
1.2 Ethical Issues .............................................................
........................................................................3
1.2.1 Poverty...................................................................
........................................................................3
1.2.2 Corruption................................................................
......................................................................4
1.2.3 Child Labour .............................................................
......................................................................4
1.2.4 Poor working conditions...................................................
.............................................................5
1.2.5 Ethical consumerism in Germany ...........................................
.......................................................5
2.0 Formulation of alternative solutions .......................................
.........................................................7
2.1 Fund education andtraining program..........................................
....................................................7
2.2 Participate in Fair Trade Labelling Organisation International (FLO) to impr
ove transparency and
working conditions..............................................................
....................................................................7
2.3 Introduce new technology for soccers production...............................
...........................................8
3.0 Recommendation..............................................................
................................................................9
3.1 Recommendation for CSR practice in Pakistan.................................
................................................9
3.2 Recommendation for marketing to German customers............................
.....................................10
References .....................................................................
.......................................................................11
Appendix .......................................................................
........................................................................15
argument if children are ban from working, they would be living in even greater
poverty and
hence reducing their chance of survival. Moreover, abolishing child labour may a
lso force
children into criminal activities in order to survive (World Vision Action, 2012
).
1.2.4 Poor working conditions
Secondly, poor working conditions can affect workers job performance both direct a
nd
indirectly. According to VeShancey (2015), the soccers factories are located under
ground
where it is restricted and the sole ventilation is obtained through holes in the
ceiling. This has
made many employees to suffer occupational health problems such as elbow inflamm
ation,
impaired fingerprints and severe back pains among soccer stitching workers (Ewej
e, 2014).
Moreover, most employees are also paid below minimum wage which it is insufficie
nt for
most workers to meet their basic needs. From the investigation of the Internatio
nal Labour
Rights Fund (ILRF) (2010), it is reported that 70 per cent of workers did not ac
hieve the legal
minimum monthly wage. This is due to the informalisation of workers as many fact
ories have
incorporated the use of casual labours where workers are not registered and are
unprotected
(International Labour Rights Fund, 2010). These employees are usually paid by pi
ece rate in
which they earn a daily income of USD$ 0.24 below the recommended daily wage of
USD$ 0.85 (Bhat et al., 2014). In addition, the desired working hours should be
limited to 48
hours per week and jobs with longer working hours will have higher risk for dise
ase and
injury (Dembe, 2009). Unfortunately, many employers prioritised profits rather t
han the wellbeing
of their workers, many employees are forced to work. Workers are required to wor
k 10
hours per day and 7 days per week in order to earn their livelihood (Ghani, 2014
). By
improving working conditions, this may reduce the firms revenue. Therefore, many
companies would rather remain the poor working conditions in order to take advan
tage of the
low manufacturing costs (Ghosh, 2014).
1.2.5 Ethical consumerism in Germany
Lastly, the importance of ethical manufactured soccer in Germany has been growin
g for the
past ten years where approximately 80 per cent of German firms that purchased so
ccer have
their individual code of conduct specifically the child labour aspect (Michiels,
2010). In
addition, it is found that 67.4 per cent of German consumers are buyers of fair
trade products
(Zimmermann, 2013). The three principal causes for purchasing ethical-produced p
roducts
are fair prices for suppliers, assurance of money is properly utilised and no ch
ild labour
(Zimmermann, 2013). Moreover, Germans consumer also engage in Internet shopping th
at
helps to prevent child labour through the use of internet software programme. Th
is is
supported by German-based Active Against Child Labour campaign where a software
named aVOID is created to automatically inspect and also publish variety of brands t
hat are
free from child labour in their supply groups (Weyden,2012). Conversely, there a
re also non
buyers of ethical products in Germany. According to Zimmermann (2013), 37.6 per
cent of
the non-buyers stated that fair trade products are expensive, 35.1 per cent of t
he non-buyers
did not have enough knowledge about fair trade goods and the remaining 26.1 per
cent were
sceptical that the revenue would fund the fair trade projects.
2.0 Formulation of alternative solutions
2.1 Fund education and training program
ASG could share responsibility with Pakistan to eliminate child labour and poor
labour
development in order to achieve positive outcomes that could benefit both suppli
ers and
workers. Education and training is the vital component for human capital develop
ment (Mtey
& Sulle, 2013). A possible solution that ASG may undertake to rectify child labo
ur and poor
labour development is to help Pakistan to fund education and training program. H
uman
capital development is an important asset for low-income countries. By educating
its people,
it would enhance the nations productively as education provides individuals the
necessary
skills for their jobs which can increase their capacity to perform more efficien
tly. As many
poor workers in Pakistan are illiterate and are lack of required skills, ASG may
execute CSR
activities by establishing schools in the low-income areas and provide adequate
training for
low-skilled adult workers. However, funding education and training program might
not be an
idealistic approach if the funded education and training services are not well-p
lanned. Poor
children and workers have several disadvantages in terms of social, physical and
emotion.
According to UNESCO (2001), if their disadvantaged position and daily experience
s are not
taken into consideration by school education and training system, these children
and workers
may not be able to fully benefit from the systems. The state of poor children an
d workers
such as poverty situation and conditions needs to be taken into account so that
appropriate
assistance can be targeted to them (UNESCO, 2001). Thus, to ensure that educatio
n and
training plan is positively responding to the needs of these poor individuals, i
t needs to
include the issue of poverty into special consideration when outlining of educat
ion and
training system.
ufacturer in
international context. Hence, ASG could solve this issue by introducing advance
technology
to Pakistans soccer production to increase production level. Improvement in techno
logy
enables the firm to increase the quality of the soccer, reduce wastage and cost
of
manufacturing (Atkin et al., 2014). Unfortunately, introducing new technology ma
y not be
successful as it can cause technological unemployment. The impact of technology
causing
unemployment is greater in production sector (Janoski et al., 2014). Agriculture
industry in
certain Pakistan areas has experience unemployment due to the adaptation of mode
rn
technology (Cheema et al., 2014). Moreover, due to low wages received by workers
, they are
not keen to bring in transformation and efficiency into their job specifically i
f it is not
associated with pecuniary benefit (Tanveer et al., 2012).
3.0 Recommendation
The target market for ASGs product is the German customers. As mentioned, ethical
consumerism in Germany has been expanding. Since 1990, the disclosure of sweatsh
op by
multiple leading brands has empowered socially conscious consumers to understand
more
about the origins, corporate account and personality of the brands they buy (Moo
re-Evans,
2014). With that, it is understandable that country of origins (COO) plays a vit
al role in
determining consumers purchase behaviour.
3.1 Recommendation for CSR practice in Pakistan
Child labour and poor labour development exists due to lack of education facilit
ies and
training programs. ASG could create a powerful television documentary of the cur
rent child
labour and workers issues occurring in Pakistan. Consumers who watch a documenta
ry
concerning social issues have higher chance of being prompted to purchase ethica
l goods and
services (Young, 2011). As such, this may inspire and educate German customers t
o
participate in taking steps to fight against the social issues in Pakistan throu
gh purchasing
ethical produced soccer. ASG could then implement charity marketing to raise fun
ds to
established good education facilities and training programs. Every soccer being
purchased by
the German consumers will be donating $5 to eradicate child labour and poor work
ers
development. The collected donations will be used to fund training programs, bui
ld schools
as well as funding school materials to children in Pakistan. To make sure more G
erman target
audience are being exposed to the television documentary, ASG may air them to th
e top
television channels in Germany such as ZDF, ARD and RTL during Germans television
prime time 8 pm to 11 pm (Commission on Concentration in the Media (KEK), 2014).
The
total views in 2014 for ZDF, ARD and RTL are 13.3 per cent, 12.5 per cent and 10
.3 per cent
(Appendix B) (Commission on Concentration in the Media (KEK), 2014). As such, AS
G are
able to develop goodwill between ASG, the German customers and the Germans
community.
rieved
December 8, 2015, from http://www.statista.com/statistics/429496/frequency-of-so
cialmediausage-in-germany-by-social-media-site/
Tanveer, M. A., Rizvi, S., & Riaz, W. (2012). Declining market share of Pakistan
in football
industry. Asian Journal of Business and Management Sciences, 1(11), 33-42.
Tariq, M., Idrees, A., Abid, M., & Samin, T. (2014). Rationale Effects of Povert
y in Pakistan.
International Journal of Research in Business Management (IJRBM), 2(6), 1-12.
ethics literature
support by international
marketing related ethics
literature
marketing related ethics
literature
Evaluation
Mark 20-17 16.9-15 14.9-13 12.9-10 9.9-0