Essay: Clothing retail industry

Chapter One

1.0 EXECUTIVE SUMMARY

“The clothes that we choose to wear each season often depend more on fashion than on ethics. However, if we want to make a positive impact on the world around us, we need to start considering more than whether the clothes suit our shape or are in fashion. Instead, we should be asking ourselves a number of different questions. Where has this been made? What sort of conditions are those producing the clothes working under? Are they getting paid enough? We should also ask ourselves what impacts the production of our clothes has on the environment” (Ruth Rosselson 2005)

The clothing retail industry is one of the fastest growing industries, and with the advent of globalization, it has become one of the most favoured industries, as designers are now able to sell his cloths all over the globe. The amazing issue is how cheap some retailers sell their cloths, and the number of times they carry out sales within a year. One begins to wonder if these retailers are making enough profit from this business. Another interesting thing is the similarity in the designs of this cloths, the same design of shirt been sold in a Next shop, is the same sold at Matalan; the only different is the label and the price of the cloths. Should this means the same designer own both companies? Talk of the prices in which this cloths are been sold, with the increase in the price of commodities especially during this recession period, one begins to think how much profit this retailers will be making, having carried out about five or six sales within a year. Considering the cost of material, labour cost, transport, and several other cost associated with distribution, the question remains that how are they making their profit?

In agreement with Ruth Rosselson (2005) a researcher, made a comment in one of his write up in the Resurgence magazine titled “Conscience Clothing”, that we the consumer only care about the fitness of the cloth and the fashion, we care less about where the cloth is been made, the conditions under which it is been made, if labourers are paid well for the production, or have the production been carried out under any violation on human right. The basic truth is that, most consumers careless about these facts. Most of the cloths sold in the developed countries including UK and US are produced in the developing countries, companies prefers to import cloths from these countries, because of the availability of the cheap material and labour, and more especially because workers have little or no right. More than fifty percent of cloths imported are from mainly five countries, including China, Turkey, Bangladesh, Taiwan and Romania, because of availability the cheap material and labour. (Crane and Matten 2007) The media has exposed the notorious act of the retail companies and the bad manner in which they treat their workers. Various acquisitions have been alleged against the retail companies, including child labour, workers exploitation, and poor working environment. Bodies, such as the ILO (International Labour Organisation), IFHR (International Federation of Human Right), NGO (Nongovernmental Organisation), and several other have raised campaigns, and have taking to responsibility to alleged clothing retails to draw up a business ethics, to guide their business operations and activities. (Drucker, P 1981)

Business ethics are also called codes of conduct; they are rules and regulations, or policies that stipulate the standards by which a company must adhere to. Business ethics guides the activities and operations of the business, and it is aimed at respecting and upholding the human right standard. The business ethics of a company should include the working hours of the employees, the minimum wages, good working conditions, and several basic workers right. Nevertheless some business gurus believe business need not to be ethical, as the major aim of any business to make money, and the welfare of the workers is a responsibility of the government. (John Hooker April 2003),

This project is designed evaluate and investigate the meaning of Business ethics, and argument for and against business ethics. Literature reviews from different journals and textbooks concerning subject matter will also be analysed and evaluated, Furthermore, this work will consider and discuss the contribution of globalisation to business and business ethics, and its impact on business ethics. A proper analysis of issues in business ethics will be done, and discussions with examples on different issue of business ethics in the clothing retail industry. A good analysis of the future of business ethics will be done, which is the corporate social responsibility and we shall analyse and discuss the importance of upholding human right standard. Recommendations and conclusion will also be made.

1.1 Aims and Objectives

The main objective of this work is to examine if business ethics as a corporate strategy of a clothing retail company could aid the upholding human right standard and yet increase the organisation performance.

In achieving the main objective if this study, emphasis would be laid on the following issues:

– The impact of Globalisation of on business ethics as well as human right.

– Identify and discuss the common ethical issues in the clothing retail company

– Discuss the concept of Corporate Social Responsibility as a new strategy in the corporate world and its impact of business performance.

– Finally, the work will analyse and discuss the importance and benefits of an organisation to uphold human right standard.

Chapter Two

2.0 LITERATURE REVIEW, DISCUSSION AND ANALYSIS

2.1 DEFINITION OF BUSINESS ETHICS

The spread of unethical issues and corruption has expanded in a wide range, revolving from politics to business and to religious institutions; this spread has ironically prompted increase in the interest of business ethics, and how corporations can adjust to help in upholding human right standards.

Ferrell et al, (2008) described that business ethics is concerned with the evaluation of practises exercised by corporations, if it is generally and morally accepted. This defines that businesses are expected to operate within a particular laid down rules which are morally acceptable to the public and failure adapting to the norms provided may not be accepted. Robin and Reidenbach (1987), believes that business ethics involves the organisation behaving in accordance with some carefully laid down rules of moral philosophy. Taylor (1975) also described business ethics as “inquiry into the nature and ground of morality” in which the term morality is assumed to mean; standard, codes of conduct or moral judgement. Manuel (2001) supports Taylor and concluded that business ethics boils down on moral standards as they are applied in business policies and behaviour, he continue that business ethics is therefore a form of applied ethics. This defines that the concept of business ethics does not only entail the analysis of the morals and norms, but also preaches the application of these norms and moral standards in every business aspects.

Davidson (2005), described business ethics, is a path in which an organisation ought to follow, smiting less pains and suffering to human and the environment as it extends the most of its benefits to the society and the economy. Collins; Watson (1994), concluded that in everyday business activity of an organisation, it is important that the firm maintains basic ethical standard which include, trustworthiness, providing a conducive environment for workers and several others, Crane and Matten (2007) also concluded that business ethics is a study which defines rights and wrongs in business activities and situation, as it affects human right, they further explained that the rights and wrong meant, is in the scene of company operation, strategy, commercial or financially activities.

Business ethics, as it has been defined by several researches and writers can simply be summarised as the fundamental moral standard, or codes of conduct by which an individual, or an organisation as a whole is expected to abide by. Comparatively, business has been seen to be the major source of investment and job creator. Business can also be assumed to be the basic background of industrial activities, ranging from production, trading, financing, distribution and several other activities which are carried out in different industry. John Ruggie (2008) described that business constitute a powerful force, which can factorise decrease in poverty rate, and increase economic growth of any given environment. Nevertheless, there are sets of rules and guide lines which are laid down, in which every business is expected to operate having considered these rules and guidelines. Any business that operates not in accordance with these rules is termed to be unethical and can be liable to justice.

Apparently, business varies in terms of nature and operation, therefore ethics of each business may differ from each other. Ethics adopted by corporations includes variable number of norms, which defines the business ethics of that corporation, though most of these norms can be general principles such as the non discrimination principle and the conducive -work environment concept. In several situations the organisation laid down some principles, according to its social practice which worker and the organisation as a whole is bound to respect and abide by. Some corporations distinguish between the norms that regulate the internal activity of the organisation, and its involvement with its subordinates, thus most of these codes and norms are explicitly referenced to the ILO convention, especially those concerned with the upholding of human right standards at work places (Jean-Paul Sajhau 1996).

Manuel Velasquez (2001) in his book “Business Ethics Concepts and Cases” suggested that, business ethics inquires three major matters which includes;

– Systematic matters: these are ethical issues that is concerned about the social, legal, political and economic system within which the organisation operates

– Corporate matters: this are ethical issues that focus on the company itself and its operations

– Individual matters: this focus on individual within the organisation.

2.2 BUSINESS ETHICS AS NORMATIVE AND DESCRIPTIVE ETHICS

Manuel Velasquez (2001) described that “normative study aims to discover what should be. A descriptive study attempts to describe or explain the world without reaching any conclusions about whether the world is as it should be”. Normative ethics involves moral standards that determine the right and wrong of an individual or an organisation, it is the quest for an ideal moral behaviour; it is based on practical moral justice. The concept of normative ethics defines that there is an ultimate norm which serves as the fundamental bases of ethical behaviours. The concept examines the moral standard to determine if people are acting right or wrong.

Descriptive Ethics on the other hand definers the ethical guidelines by which people behave. Descriptive ethics examine what moral standard an individual or a group of people tends to follow as guidelines for their behaviour, it also investigates different people’s beliefs on what they term to be morally good or bad. Descriptive ethics an also be termed as comparative ethics because it involves comparison of different ethical system from the past to the present, from one society to the other and the beliefs of people that they act according to. It asks questions such as:

– What people believe to be their moral standard?

– How do people react and handle problems?

2.3 ARGUMENTS FOR AND AGAINST BUSINESS ETHICS

Various arguments has been raised concerning business ethics, what business ethics should be, how it should be practice and even if it should be considered or not. This section of this work will analyse view and beliefs of different economist and writers concerning business ethics.

Milton Friedman an economist and business man who believes business ethics is irrelevant, he continues that business should not be concern about ethics because the major aim of business is to make money and maximise profit (Friedman 1984). He discussed in an essay tittles ” The Social Responsibility Business is to Increase Its Profit”, that the major aim of corporation, and its major task is to maximise its profit, he believes organisations are not suppose to be concerned about how to reduce unemployment, or reducing pollution more than that the law of the state has stated. In a more literal term his assumption means business should be less concern about how they make their money, as long as they keep making the money. Friedman raised two arguments against business ethics. First, “corporate executives and are not qualifies to do anything other than maximizing profit, because business people are specialized in making money not social policy”. Second, “corporation executives are not obligated to spend company’s money on social welfare, they can only elect a representative of people, to perform such function and any project on which company’s money is to be invested on, must be one that will yield benefit to the company”. He continues that a sole proprietor can afford to spend his money on social welfare without the expectation of any returns, since it’s his money and he can do whatever he wishes, but a corporation should not invest people’s money on social welfare unless it expects a yield.

Ducker (1981), supports Friedman, he suggested that “there is neither a separate ethics for business, nor there is need for one” Ducker (1981) believes the obligation of a corporation not to vandalize human rights, lies on age, old wisdom and common sense, as there is no special need for terms such as business ethics. Carr (1968) wrote in an essay titled “Business Bluffing Ethical?” Suggested that “business is like a poker game”, he continues that “deception is a legitimate part of business”, he described business to include deception, bluffing, misleading others and concluded that, “ethical rules of everyday life are not applicable to business”. Collins (1994), described business ethics to be an oxymoron, meaning business ethic is a contradictory concept, Collins (1994) continued that, business is unethical, it is inherently bad, and will remain bad, therefore introducing the concept of business ethics is like introducing an almost impossibility.

On the other hand some other business gurus and economist disagree with Friedman and Carr. Crane and Matten (2007), suggested that, various circumstances traceable to unsuitable business activities, such as child labour, poor working environment, exploiting sweatshop workers and several others, are unethical ways in which some business carry out their activities, he continued that despite the occurrence of this scandals within bushiness, yet it doesn’t means there are no principle and values that controls such this activities, it worries that, this kind of activities occurs among business, but attention should be given to this areas and better decisions should be developed to improve the situation. Hooker (2003), wrote an article “Why Business Ethics”? He commented on Friedman believe, that “if laws permits anti-social behaviour, should businesses not restrain themselves voluntarily, even if it imposes a cost on stakeholders?” He argues that corporations neglecting business ethics is as worse as giving an armed rubber a gun to murder, he cited an example of clothing retailer, packaging cloths with a fake labels to make consumers buy the products, and a food processor intentionally placing a wrong label on the food packs, or a family car built with an explosive gas thank like the factory mistake on Ford Pinto, such acts are precisely illegal and unethical, which may leads to death. He continued that, if a sole proprietor tuned to be a company, should he loose his moral ethics, or would those ethics just disappear? In contrary to Carr view. Hooker (2003) believes that, every business needs to gain loyalty from the consumer to improve in its operation and increase in profit making, and one of the ways in which this can be done is by adopting proper ethics that the consumer can benefit from. Collins (1994); Watson (1994) commented that “several writers have shown that everyday business activity involves and requires the maintenance of basic ethical standards which includes honesty, co-operation, trustworthiness and truthfulness”.

Crane and Matten (2007) concluded that, business will not be possible if buyers and sellers don’t trust each other, and employers don’t help each other at work, or directors lies to his colleagues, so also it is not possible to believe business ethics is insignificant or idealistic, because the essence of business ethics is to identify, distinguish and correct the rights and wrong in the business activities.

2.4 GLOBALIZATION AND BUSINESS ETHICS

Globalization has become an important issue publicised by the media in current days, Crane and Matten (2007) said, “Globalization is one of the most prominent buzzword in recent times”. Magazines, news, press report and conferences, talks about the issue of globalization as it affect economy and the business world. Business and government leaders have also come to realise the effects of globalization to their environment, the chairman of Goldman Sachs made a speech titled the “Gospel of Globalization” where he embraced the interconnectivity of the world economy, and its advantages to the global economic growth and welfare (Paulson2001). In contrary the chief executive officer of Deloitte Williams Parrett described globalization to have brought about different risk into business. At the world economic forum held at Davos in 2006, he described that, the effects of globalization is that, it has increased the risk of all kind to business including lack of confidentiality in business, due to the rate at which information travels far and fast, it also allows any occurrence or event either far or near to affect the business, since the market is independent. These assumptions have confirmed the great impact of globalization in business, despite the diversity in global culture.

Business ethics have been playing a big role in globalization. Multinational corporations are now at the centre of public criticism, as they have been alleged of engaging in exploitation of workers, child labour, and destruction of the environment in the developing countries, which is against the codes of conduct in which they are suppose to operate as laid down by the ILO – International Labour Office (Crane and Matten 2007). However either these accusations are true or false, with the reigning alert about globalization, it is of good for corporations to define if their behaviours are right or wrong.

Crane and Matten (2007) identifies two main instrument of globalization which were technology and indigenisation. The improvements in technology such as mobile phone, radio, television, internet and several other media, has opened the connectivity and interactivity within people irrespective of their distant residence, so also the improved technology in transportation, which now makes moving from one territory to the other very easy. This factors has to a great extent obstruct the presence of territoriality in the business world as people can easily advertise, market and transact business despite the distance between the territories.

Integration as a political nature is another instrument of globalization as described by Crane and Matten (2007). The development in the political nature has brought about the eradication of territorial borders in many countries, as many countries now engaged in bilateral trade and allow visa free entrance into their territory. A good example is the European Union (EU) and the Economic Community of West African States (ECOWAS). These new political nature which allows trade to be easily carried out since the process of obtaining visa is now made easy, while some countries can even be entered without the use of a visa .

These two instruments of globalization have obstructed the significance of territoriality. Crane and Matten (2007) concluded that the effect of these new developments is that there is no more substantial need for geographical territory to exist, and there is less restriction by the territorial borders. Scholte (2000) defines globalization as, “the progressive eroding of the relevance of territorial bases for social, economic and political activities, processes and relations” he characterized globalization to be “deterritorialization” giving an example national sport events, such as the champions league. Different people from different countries watch the football match in their separate homes or pubs at the same time, without visiting the venue where the match is been played. Another example is global products and global market; people buy the same brand of Toyota all over the globe just as people wear a Gio Gio Armani shirt all over the globe despite how far they are from where it’s been made. The idea of global product, global capital market, global communication, global labourers, have emerged the relevance and relationship between globalization and business ethics.

According to the UN conference on trade and development, it was reported that in the past thirty years, the GDP of most developing countries have increased by 52% and about 8% increase in the six largest developing countries every year, in the past 5 years. The UNCTAD also reported that there have been an increase in growth, in the developing countries “… seems to have engendered synergy among developing countries so that growth in these countries can be endogenous” (http://global-labour-issues.suite101.com/article.cfm/panacea_or_worker_exploitation). Frank Hardy a reporter with the Washington press wrote an article, where he evaluates the Effect of Globalisation on Business; despite the flow of labour from old industries to the new industries, which has caused a very large gap between the demand and supply in the labour market. The disparity between the demand and supply of labour will result in a short-fall in many industries. At the same time the loose of high pay jobs will have a negative impact on the workers and their entire family.

Multinational corporations engages in labour exploitation, observations were made that corporations often ignore the ethical practice, while in other countries especially the developing countries, cases of slavery and exploitation have been alleged in India’s clothing industry, exploitation of children in Indonesia, poor working environment in Bangladesh and inferior material usage in China. All these acts where all factorised by the globalisation as a function to maximize the company’s profit. However, GDP might have definitely increased in the developed country aided by globalisation, but it has also cause stagnancy in many developing countries economy. David Wessel a reporter with the Wall Street Journal, wrote an article in May 2005 that, Americans perceives their country to be a state of many opportunities due to the increase in the GDP of the nation and standardised labour market, yet economist in recent day analysed that a child living out of poverty in the developing country would have had a better chance of prosperity if accurate ethical conducts are put in place and respected by the multinational corporations. Hardy says “In order for globalization to work there must be a large consumer base requiring good paying jobs. Which nations have that base is another question.” (http://global-labour issues.suite101.com/article.cfm/panacea or worker exploitation)

As much as globalization has affected business and economy, so has it affects business ethics. Crane and Matten (2007) described two major factors of globalization that could affect business ethics.

2.4.1 Culture

As business becomes “deterritorized”, it opens an advantage for corporations to trade in overseas market which brings them to confront issues of divers and contradicting ethical standards … the cultural belief of different territory affects the way business is been done and defines the ethical standard in which the indigenous business operates. Donaldson (1996), said the morals and values by which people live in their home land may be questioned overseas and vice versa. For instance the Europeans find child labour to be unethical while some parts of Chinese need their children to work even at underage to feed him or herself and to provide for the family. Also Chinese people believe it’s unethical to sack workers during economic recession but Europeans find it to be a moderate act. Some culture takes gender equality seriously while some believes there is a great difference between both genders. Another instance is a case of religious believes, some culture allows their ladies to dress which almost nude at beach sides if they want to, while some think ladies should cover up at every point in time. These instances and other cultural differences affect the business ethics as a result of globalization been deterritorized.

These have been a problem for multinational companies to live with, but yet, it should be a great obligation for them to operate in different territory according to the way their culture allows. If multinational business gains a lot from these overseas trade, then it of moral that proper responsibility to the territory should be carried out in their operations in accordance to the cultural belief in which the people believes it is ethical

2.4.2 Legal issue

“The more economic transaction loses their connection to a certain regional territory the more they escape the control of the respective national government (Crane and Maten 2007). Governmental powers are functional only in their traditional regions for instance the Unites Kingdom government can only exercise her power within the territory of United Kingdom and same goes for other territories. Moreover the advent of globalisation has restricted the impact of government on business, the government can only impose its laws on the activities and operation of that business which is been carried out in that territory. When a business extended to the overseas, the framework of governance and the legal issues attached to that company becomes different, for instance, the government can only charge tax on the operations of that business within its own territory, excluding its operation outside her territory. This resulted to the fact that business can no longer rely on the legal framework of ethics as that is pronounced by just a government to determine if a business practice is right or wrong. Researchers have distinguished between business ethics and government law, some writer defined law to be the institutionalisation of ethics into rules and regulation, while some writers defines it to be the least acceptable measure of behaviour, nevertheless several immoral issues in business are not included in law. Crane and Matten (2007) said ethics begins at the level where law ends, just as discussed earlier, some government may find it against the law for business to engage in child labour while some government are silent about, just as there is a legal act binding all business to contribute to the development of the territory where they are while come government careless about it as well. Therefore as globalization increased in terms of deterritorization so does business ethics, because business activities are now beyond the control of a particular national government as it becomes difficult for a national government to impose authority on the enforcement of business ethics globally.

2.5 BUSINESS ETHICS IN A CLOTHING INDUSTRY

A list of ethical standard has been adopted by different industry in line with the nature of the business, this business ethics are also termed the company’s code of conduct and are defined under the company’s corporate social responsibility (CSR) function. The corporation engages in different social practice both internal and external of the organisation affairs, and each activity is expected to be respected as it follows the principles by which the business is operated. Some organisation segregate the principles that govern the internal affair from that of its external activities, most ethics adopted by the corporations are directives from the International Labour Organisation (ILO), especially the ethics that are concern with the upholding of human right standard of workers, public and environment. These codes of conducts are fundamental principles established in accordance with the ILO convention. (Jean-Paul Sajhau 1996),

A number of industries have joined the practice of business ethics as it has become a remarkable comeback into the business world in recent years, especially in the clothing and textile enterprises such as Sara Lee and Levis Strauss in the united state, Mark and Spencer and a number of other clothing retail companies in Europe. Even in the developing countries, though much engagement has not been done, but Multinational Corporation has been obliging their subcontractor to respect the established ethics that concerns their activities (http://www.ilo.org/public).

The ILO, established in 1977, had a tripartite declaration of principles on Multinational Corporation and social policy, after the alarming critics about multinational company exploiting the developing countries. The tripartite declaration by the ILO, alongside with other non governmental bodies campaigned against the unethical behaviours of the multinational corporations and till date, the industries including the clothing and textile industries still hold great respect and importance to these principles. To a great extent most of the principles established voluntarily by individual enterprise in the circle of social policy, are referenced to the principles and codes of ethics as prescribed by the ILO (http://www.cleanclothes.org/)

The international trade unions has also contributed to the publication of business ethics in the clothing and textile industry, for instance The International Textile, Garment and Leather Workers Federation supports the national federation in the campaigning for human right standard and call for corporate social responsibility by the corporation. Also in 1995 The Amalgamated Clothing Textile Workers’ Union and The Clothing Manufacturers Association of the United State, agreed on a national ground, a collective agreement which define some codes of conduct for the clothing industry. The agreement includes a bound on the clothing manufacturers and retail companies including their sub-contractor in the developing countries, the codes defines the proper standard for minimum wages, non-forced labour, non-discrimination, non-child labour and several ethics in accordance to the ILO convention of 1996 (http://www.itglwf.org/default.asp?Language=EN).

Consumer associations and non-governmental organisations have also engaged in the duties of educating and drawing the attention of consumers and enterprises to the need for proper business ethics to be put in place, as well as making awareness for human right, and reason why it should be uphold (Peter Prowse 1996). One of the top issue focused on by the NGO’s is the issue of child labour, campaigns where made as they tried to promote social label for the clothing industry and enlightened the public on the danger associated with child labour as well as the rights of the workers (http://www.ilo.org/public).

The national governments also played an important role in the uplifting business ethics especially in the ethics concern with upholding human rights; they helped in enforcing the standard in business operation. The French government for instance laid great emphasis on respect of human right especially in the case of international business and their subcontractors, ensuring workers right are met and adequate benefits are paid to the workers. The united state government also adopted a similar measure, during the President Bill Clinton administration a campaign was made against sweatshop, the Labour Department identified some issues with a list of clothing company and their subcontractors to be acting against the ethical standard of the industry especially concerning the exploitation of worker in the sweatshop companies. This prompts the clothing companies to clean up the industry by urge their subcontractors to respect the labour congress legislation on human right in their marketing and production activities. They also carry out researches draw guide lines for the companies from which the companies can build up their ethical standards and also use the media publicise articles to educate the public on the rights of the workers. (http://www.sweatshopwatch.org/).

2.6 ETHICAL ISSUES IN THE CLOTHING INDUSTRY

Business ethics issues are problems or conditions that arise in the daily business activity that allows the corporation or employers to evaluate if the activity in question is right or wrong (Ferrell, Fraedrich and Ferrell 2000). Various activities are carried out in the day to day operation of a business which may result in conflict of any manner. Conflicting issues may arise between the manager and the employees, within the employees, between the business and the consumer or between the business and the environment as the case may be. These conflicts arising from the activities of the business might be termed as ethical issues in the business. Ferrel et al described said “ethical issues arise due to conflicts within people’s personal moral philosophies and values, the behaviours of the organisation where they work and the environment in which they live within”. Crane and Matten described that employee and the employer relationship is an area from which ethical issues is expected, including fair wages, working conditions, sexual harassment, or taking advantage of company facilities. Due to different human needs and wants, the business environment erupt several ethical conflicts as a result of collision of interest, the buyer’s interest in buying a safe quality product might collide with the interest of the seller with the aim of making more money as a result reducing the quality of the product, also the interest of the corporation in its objective might collide with the interest of the employee, just as a director might prefer to employ the best candidate for a particular job but the organisation interest in another person might obstruct the director will. In different ways, due to the nature of business ethical issues may arise and when it does arise, the organisation is expected to decide on the best way of resolving the issue (Taylor 1975). Some business gurus argued that there is no need for the involvement of the corporation in his employees working and living condition, Fitzgerald (1999) concluded that an employee is motivated by the care shown to him or her by the corporation, he continued that only when workers live in decent and comfortable condition are they likely to be excellently productive and committed to achieving the organisations objective. Crane and Matten concluded that modern companies now see to their workers housing and healthcare.

Thousands of ethical issues may arise in a business environment, within the organisation involving the shareholders, directors to the employers and outside the organisation involving the suppliers, consumers and the environment. Ferrell et al defines four classes in which business ethical issues can be classified, they include, communication, conflict of interest, honesty and fairness and organisational relationship.

Communication – Redding (1996) suggested that several questions has been asked in relation to the phenomenal of organisational communication has it integrates the question values and ethics in business activities. Communication in this context is the transmission of information between two parties (Ferrell et al 2000). Communication covers a large section of ethical issues, ranging from communication within the organisation and between organisation and the public Cheney and Christensen (2001) defines that internal and external communication in an organisation is designed to create the organisational identity in respect to companies ethics and values . Ethical issues in communication includes advertisement, marketing, employment contract, employee privacy and several others (Redding 1996).

A misleading communication or false communication could be termed as unethical and can be destructive to the organisation. Lying in communication is a serious issue in the business ethics, deceptive adverts is also a serious issue in communication as well as abuse can also be taking seriously, exaggerated claim to the public and the workers are also unethical and can leads to distrust in the business. A number of clothing retail company do this to encourage exploit workers by promising them to certain about of wages before resumption but latter changed their word after the worker resumed to work and of course the worker has less option. For instance Appendix One illustrate a situation in Primark one of the leading retail company in UK. Navdip Dhariwalof the BBC news on the 12 January 2009 reported a case of an undercover reporter who was promised the minimum waged before resuming to work but was offered �3.00 per hour at the end of the month (http://news.bbc.co.uk/1/hi/7824291.stm). Another issue is the size labels on the cloths, the labels such as super size has been use to confuse the intentions of the buyers as the buyers seem not to know the significant difference in the sizes and they doubt which is the real perfect size for their body. In response to this some manufactures have now introduced the extra measure by labelling cloths extra large, petit, extra-extra large and so on, also is an instance of the women clothing of size 8 which differs for one designer to the other (Ferrell et al 2000).

Such acts in business are unethical and it creates issues, the communication those not include all the necessary information that the buyer need or the workers been deceived which can be termed to be exploitation. Such acts are illegitimate are and are against the ILO standard and are liable to court action.

Conflict of Interest – “We can define aconflict of interestas a situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties as, say, a public official, an employee, or a professional.” (Chris MacDonald, Michael McDonald, and Wayne Norman 2002, pg 88) Ferrell et al (2000) wrote that one of the issues in business ethics is the conflict of interest between the employee and employer or between the business and the public, this conflict can result into violation of human right by the organisation in most cases, in the United State, employees are not obliged to accept bribe or gifts or personal payment as a medium of influence to carry out a special favour. Thought bribing is a legitimate ethics in of business in some part of the world but it is morally questioned by most cultures.

Conflict of interest may also occurs indirectly, most clothing retailers based their manufacturing outlets in the developing countries most especially in the eastern Asia’s because of the cheap material and labour and in return to help in the development of their economy, most of this labourers with these organisations were exploited and maltreated but the government seems to be quite about it because of the money been given to them or because of the promises made by the companies to help in developing their country. In instances like this, though the interest of the company to gain cheap labour and material is not conflicting with that of the government to help them in building their economy but its conflicts with the workers human right violated the standard business ethics as pronounced in the ILO convention. Appendix Two illustrates an instance of Nike in Taiwan and South Korea, Nike normally produces his shoes and sport ware in Taiwan for several year due to the cheap labour and cheap material in the country, but when the work force got the advantage of forming a union that was able to organise the wages and salaries of the workers and sets a minimum wages, Nike decided to leave the country for another Asian country where there is an authoritarian leader who did not allow the independence of labour union and the labour union is less functional, there is less protective measures for the labour market and the labour market is cheap.

(http://www.thirdworldtraveler.com/Boycotts/NikeFacts_GX.html)

Honesty and Fairness – honesty can literally means been truthful and trustworthy, having integrity and been compassionate. Fairness on the other hand means impartiality and unbiased, or equitable, these are normal general moral ethics that every business is supposed to operate by. Ferrell (2000) suggested that every business should at least respect the rules and regulation governing human rights and employers should not deliberately harm any of his workers. Loucks (1987) concluded that though business men are more conscious of their own self interest, yet business should be base on fairness, trust and justice, each chain in the business circle should be honest and fair with each other, he continues that not abiding by the ethical rules and regulation can obstruct business performance.

Honesty and fairness are normal moral way of living, business are expected to behave in same manner, though some businesses are only concern about the money and careless of whatever they need to do go gain the money, this kind of action will be termed as unethical. To exploit a worker or to discriminate are certainly instances of been unfair. Paying a staff below the minimum wages or depriving workers of their benefits or no providing a good working environment for the workers and also instances of been dishonest and unfair. Hurlbert (2006) said employers should pay their workers fairly, he continues that workers should not be treated less than a human; they should be included in the decision making and should be reward and motivated in the good performance. He concluded that “happy employees are more productive and are liable to save more cost and assist immensely in the achievement of the organisational goal” Eric Beversluis (1987), wrote an article titled “Is There No Such Thing as Business Ethics” that many business man see business as a game such as boxing and basketball where there is no hold for ethical rules, a boxer will not hesitate to harm him opponent if he want s to will, so business should be ready to harm to win as well. Writes such as Conrad Levinson believes business is like a war front and it needs every attacking strategy to counter the consumers and the workers, therefore honesty and fairness are not logically needed in business. However several other writers argue against the assumption of business been a game such as boxing. Ferrell says “business ethics must not only make clear what rules apply to the game but must also develop rules appropriate to non-voluntary character of participation in the game. Jim Balassone an executive in residence at Markkula Centre of Applied Ethics said businesses should adopt the habit of including business ethics as part of the hiring exercise, he continued that honesty and fairness in business does encourage employers to works without supervision or anybody watching. “Corporate culture is built from the top down, and Employees should adopt the ethics honesty and fairness. You are the company, and you set the standards, it is the responsibility of the employer to create a mission statement and goals with a set of values that includes honesty, integrity, fairness and excellence.” (http://www.startupnation.com/articles/1664/1/business-ethics-honesty.asp)

Organisational Relationship – this relates to the way the organisation behaves to the consumers, workers and the environment. The relationship between the organisation and the workers shows how ethical the business is. Employee and employer are expected to work together as a team to achieve the organisational goal. Employees should meet the necessary needs of the employer and avoid exploitation or over using their workers. Timothy Sexton (2007) a writer and web blogger, wrote that the behaviour of the employee in a business is a yardstick of shaping the achievement and the ability of the business to survive in the short and long term run. Sexton continues that “The performance of staff up and down the often labyrinthine hierarchy of the organization is managed through the implementation of bylaws and regulations; these rules can be vaguely defined and rarely enforced, or they can reach almost Nazi levels of discipline. This culture of behaviour and adherence to the rules is tailored both by the shared goals as well as the unique individualism of each employee”.

Proper ethics should be spelt to guide the relationship between the employee and the workers and adequate behavioural ethics should be put in place to address and define the organisational relationship. Though ethics in this sense may seems technical and this is the more reason why an adequate and appropriate ethics should be drawn that will spell out what is right and what is wrong as well as the punishment and reward that accompanies both scenarios. In line with this the business should ensure that a well defined mode of rewarding workers should be spelt and well as bases under which the staffs are entitles to it. To achieve this, the employers should be allowed to be part of the management team such as a representative; on the other hand independent employer union should be encouraged. Also the management should allow the managers to be part of the decision team to ensure that the correct information is passed across to them.

Gary Hansen an Australia press with the Aduki Independent press reported the situation of home workers in Australia. This home workers having a contract under a particular clothing company to make the cloths from, they work more than 15 hour every day for $2 or $3 per hour for seven days. The home workers are mostly women who were enslaved away by the clothing companies. The major aim of the company engaging in these activities is to minimise cost to the extreme, this home workers are not entitled to sick leaves, holidays, overtime payment and though they work from home, yet the working condition is very poor (http://www.aduki.net.au/other-stuff/30-worker-exploitation-in-our-own-backyard, http://www.oxfam.org.au/explore/workers-rights )

This scenario is an example of a bad organisational relationship in the clothing company, the public press charges and campaigns to protect the interest of the home workers. The Retail Ethical Clothing Code of Practice was formed in 2002 which stipulates that every clothing company must be for the fair treatment of his workers. (http://www.labourbehindthelabel.org/)

“In other words, there is no place in an organization for those who suddenly become accepting of the ethical standards only after they have already been caught violating them” (Timothy Sexton 2007).

2.7 CORPORATE SOCIAL RESPONSIBILITY

Business ethics is mostly related to Corporate Social Responsibility, and they are often used interchangeably. This section will clearly differentiate between and business ethics and CSR and it will further evaluate the position of CSR in the business.

Business ethics has been defined to be principles and standards set as a guideline for business operation activities. The concept of business ethics defines the rights and wrongs in the way business operates; they are sets of rules and regulation that protects the rights of the employers and public. Corporate Social Responsibility on the other hand defines the obligation and responsibility of a corporation to protect the affairs of the stake holders including the owner, the employers and the public in general. In other word CSR can be said to be the company’s obligation to pronounce and implement accurate business ethics (Carroll 1991).

Jones (1980) defines CSR as the belief that corporation are obliged to the society other than making profit. A number of controversies have been raised in the past but in recent year, the concept of CRS has been generally accepted as most corporations including the clothing companies, companies are now responsible for welfare of the workers, consumers and the environment, beyond making profit. However one may think what the gain is, for the corporation in exhibiting social responsibility, Crane (2007) said, the pursuit if extra reward may be the reason why corporations now engage in social responsibility or to avoid been neglected by the consumers. Greening and Turban (2000), also suggested that the workers can be more committed and excited to work if the company is socially responsible, at the same time employing social responsibility can a long term investment if the company has contributed reasonably to the development of the community. Friedman (1970) on the other hand argued that the only reason a company will embark on such project is if it’s making a returns from it and in other word should be called profit maximisation strategy not CSR, Bowie (1991) agreed with Friedman to an extent and concluded that, either CSR is to make more money or not at least it still performs the major obligation of social responsibility. The integrity of an organisation as well as his conformity to ethical issues goes beyond formulation of rules and regulation but also requires adequate compliance and not compromised of the ethics to achieve the company’s goal (Ferrell et al 2000).

More companies now adopts the CSR programme, as it aids improvement in the company’s operation and activity especially in relation to human right and environment protection as well as the development of the society. The concept of CSR was raised as a result of the camping against the sweat shops in the multinational companies. The concept addresses issues such as, child labour and workers exploitation, discrimination and harassment, working hours, as well as health and safety issues; it defines the rights and wrongs on these issues and monitors its respect (Clive Crook 2005). Marihugh Cheryl (2006) argues that labour laws and its monitoring are two different issues that need to be addressed separately other than putting monitoring as a function of the CSR; she concluded that, monitoring should not be under the umbrella of the CSR, the monitoring should be independent of the labour law to strengthen the ethical standards to be observed by the multinational corporation as they comply to the labour laws.

Ever since the advent of CSR in the 1990s, much relevance has been attached to the concept especially in regard to the outsourcing of low materials, technology and labour in the developing countries. CSR defines that such outsourcing should not only be for profit maximisation purpose; it should also be responsible of upholding environmental welfare and human right standards. Involving in an unethical activity may results disastrous to the company (CNTAC 2007). Clothing retail companies are also realising their responsibility toward promoting a green environment and upholding human right standard. CSR of any given organisation including the clothing retails should be concerned about their obligation to the society as a whole to increase their positive impact on the society and reduce to a very minimal level their negative impact. The concept of CSR therefore applied to the government, individual and the organisation (http://www.fibre2fashion.com/industry-article/2/179/ corporate-social-responsibility1.asp).

Fiber2fashion site, divides CSR into of an organisation into two;

– Human responsibility: this defines the responsibility of an organisation toward its stakeholders. The organisation is expected to be socially responsible to its employees, customers, competitors, environment, supplies etc. The social responsibility of an organisation and to the consumers is more focused on in this work the they include, conformity wages and benefits, conducive working environment, health and safety etc

– Environmental responsibility: this are obligations of the organisation to ensure a green environment

CSR stipulates that the company should carry out its activities and operation with the interest of its stakeholders in mind, in as much as the business is designed to make profit, it should not affect its employee and consumers as well as the environment adversely, companies should carry out their operation in a manner in which the interest of the stakeholders are protected. Nevertheless some business men argues that the concept is of selfish interest, by engaging in social welfare projects in order to increase their popularity and to make consumers divert their attentions to them.

Zhao Linfei and Gu Qingliang (2009), describe the evolution in CSR as its been described by other researchers, their analysis indicates that the evolution of CSR back in the 1990s have experienced a shift from “obligation and responsibility relative to the society to international and social issues as well as corporate social performance”. Falck and Heblich (2007) analysed that “in the 21st century the concept if CSR has further experience evolution to strategy and competitive advantages”. “Using the concept of CSR, companies can strategically maximise its profits and gain more competitive advantages” he concluded that “companies can do well by doing good, they can make profit and yet make the world a better place at the same time”. Linfei and Gu Qingliang described that “CSR is a voluntary corporate commitment to exceed the explicit and implicit obligations imposed on a company by the society’s expectation of conventional corporate behaviour”. “Organisations can adopt this concept and by doing so gain more profit at the same time” (Falck and Heblich 2007).

CSR can be used as an efficient managerial strategy and can contribute immensely to the success of the organisation, Porter and Kramer (2006) described the concept as a “win- win situation strategic philanthropy”. There several ways in which an organisation can strategise in adopt the concept of corporate social responsibility. On like every other industry, there are numbers of ways in which the textile corporations can fulfil its obligation to the employees, the consumers and the society;

Particularly the employees as a major concern of this thesis, the companies can create an avenue where the employees opinions and complains can be heard and an effective policy should be drawn to provide solutions to their complaints. The organisation can also ensure an adequate policy for settlement of disputes between the employees and between the employees and the managers. The company should provide a competitive and challenging work environment for the employees as well as ensuring as safe working environment of them. Basic ethical remuneration, promotion, and other benefits should also be put in place. Appendix Four illustrates the CSR of Burberry textile company; “Burberry is an organization that strives to fulfil its social responsibility. It provides its employees with safe working conditions, fair policies regarding appointment and remuneration and ethical workplace standards. There is no bias towards age, gender, colour or marital status in its employee policies”.”The staff of Burberry are specially trained in safety conditions at the workplace. It has specified health and safety standards, which are audited annually”.

Also quality products should be made available to the consumers at reasonable price and regular research and development should be carried put to innovate more useful and ethical good for the consumers. Corporations should adopt an eco – friendly concept as well as sustain a green environment. Porter and Kramer (2006) wrote that, “The practice of CSR is a long term investment for the company”. A well planned CSR will aid the reputation of the company, a good reputation is an instrument to attract, retain and motivate quality employees, and at the same time it increases the value of the brand which increases the company’s goodwill (Falck and Heblich 2007).

2.8 IMPORTANCE OF UPHOLDING HUMAN RIGHT STANDARD

Human Right are fundamental staple rights of every individual. Human Rights are basic international standards that protect every human from any kind of abuse including, political, legal and most especially social. Every aspect of the globe ranging from politics to economic, business and legal issues have their aspect in which they make provision for human right standard. Rights to freedom of opinion, freedom of religious, right not to be tortured and several others are typical example of human rights. These rights are generally accepted moral protected by the law at both national and international levels. The government and international bodies are subject with the responsibility of governing the compliance and enforcement of human rights. The Universal Declaration of Human right by the United Nation, the International Convention on Economic, Social and Cultural Rights, the International Convention on Civil and Political Rights, and a number of other documents and treaties are basic references used by international organisation including the United Nation, The European Union, African Union and several others. (http://plato.stanford. edu/entries/rights-human/)

In recent years, there have been numbers of reason why the business needs to be involved in upholding human rights standard not excluding the clothing retail industries. “Business increasingly needs a stable international environment in which to operate, with sustainable market and a level playing field because human right provides a framework for business to understand societal expectation and deliver value to its stakeholder” (Global Compact 2009)

Dr. B.G. Ramcharan (2001), the United Nation Deputy High Commissioner on Human Right at the UDHR conference commented that every individual including corporation should uphold and promote human right standard. Corporation especially, are summoned to carry out their operation in accordance to the declaration of the international laws concerning human rights, they should endeavour to in promoting the rule of law pronouncing in every countries where they operate at the same time they should ensure that their activities those not contradict to the international law of human right “Corporations should never be associated with, and should actively combat, racial, gender, social and other pernicious forms of discrimination. They should actively combat torture, enslavement, arbitrary arrest and detention, enforced disappearances, arbitrary and summary executions and any form of gross violations of human rights”. “They should strictly abide by and actively promote universal implementation of the International Convention on the Rights of the Child so as to ensure that every child on the planet has an opportunity to develop to the fullness of his or her potential”.(http://www.unhchr.ch/huricane/huricane. nsf/view01 /FF3B03E8F317493 4C1256A4000573003?opendocument)

At the Global Compact summit, the top business leader gathers and discussed the integration of human rights into business management, they identified a list of the importance and benefits a corporation would gain from promoting and upholding human right standard:

– enhance company – stakeholder relationship

– Improves recruitment retention and motivation, procedure

– Meliorated risk assessment and management

– Reduced risk of bad publicities

– Improves corporate reputation and brand image

– Allow a safer license to carry out business operations

– Strengthens shareholder and investors confidence in the organisation

– Enhance a more sustainable business relationship with the stakeholders including the governments, business partners, trade unions, sub-contractors and suppliers, workers customers etc (these benefits will be discussed later in this chapter).

Furthermore, organisation should pay special attention to the indigenous population or minorities that seems to be affected by any form of threat and should ensure proper amendment is made to counter the threat to save human right been violated and adopt every possible means to upholding human right and respect ethical standards. They should play their part in supporting national institutions and civil society in their efforts for the promotion and protection of human rights. They should contribute actively, as members of the international human rights movement to education and publicity about international human rights norms so as to help a universal culture of human rights to take roots in all parts of the world. (http://www. gcnordic.net/index.php?r=page/show&topicId=4)

Human rights provides a yardstick to measure the ethical behaviour of businesses, several nations have devised a policy to protect the human rights in its vicinity in which the corporation must abide by. Though the advent of corporate social responsibility in the business is new, and with lots of controversies on business ethics which has been discussed earlier, in this idea UN developed a UN sub commission to promote and protect human right. “The Draft Norm” on the responsibilities and obligations of the transnational corporations, despite the absence of a legal status of the “draft norm” it provides a good framework for the human right in business environment. This drive has pushed the corporation into the inclusion of business ethics in their business policies. (Global Compact 2009)

The question of if business ethics is important or not has been a major debate among economist and business gurus in different perspective, while some business man believes it’s an expensive project to embark on, some believes it’s a good strategy to maximise profit, though the assumption of business ethics on the two bases might be right to an extent, but apparently business ethics has been proven beneficial to both the society and the company. Business ethics and social responsibility of a company have earned the organisation the commitment of the workers, which will leads to efficiency in the business daily activities and production of quality products. It also offered the company workers loyalty, Effective decision and good financial performance.

Trust and fairness are major instruments in the success of an organisation as it defines the reputation of the organisation to be good. “The reputation of an organisation has a great effect in the relationship between the organisation and its stake holders including the workers, consumers, society etc” (Ferrell et al 2002), Wroe Alderson (1965), declared that an “organisation that is perceived to be ethical often have strong and loyal customers as well as strong employee base because of trust and mutual dependence in the relationship”. When an organisation adopts an attitude of trustworthiness it automatically engages in building a trustworthy relationship, Loe (2000) wrote that the “the employees’ perception of their firm has been ethical leads to performance enhancing outcomes within the organisation”. Trust in a company enhance productivity and team work within employee to employee and employees to the employers, “introducing trust worthy climate allows workers to rely and act on the decisions and action of their colleagues and the managers, in such environment, employees can reasonably expect to be respected and considered by other stakeholders” (Farrell, Helen, and Farrell 1998). Stephen Covey (1989) concluded that, “trust is the glue that hold organisation together and allows focusing on efficiency, productivity and profit”, he continued that “trust lies at a very core of motivation, it brings out the very best in people”.

Susan Gaines (1997), conducted a research to study the relationship between the workers, job altitude and performance, she discovered that the commitment of a workers as a result of job satisfaction leads to customers satisfaction and investor are attracted to customers satisfaction. Jaworski and Kohil (1993), discussed that committed workers emerges from the believe of the employee that his or her future is safe with the company and won’t hesitate to make sacrifice for the organisation, the more company is responsible for the care of his workers and the public the more possibility of the employee and the environment caring for the organisation back. If workers enjoy good remuneration, good working environment and benefits it creates an ethical climate for the organisation and increase the commitment of the workers. Aaron (1993) believes when workers noticed the high involvement of the company in community matters it increases their loyalty to the company and feel their participant in the company’s involvement.

Customers are majorly attracted to company’s integrity and quality, especially when the price is comparable to its competitors. Ferrell et al (2000) described that “the prevailing business philosophy about customers relationship, is that an organisation should try to provide products that will satisfy the customers, it is generally accepted that customers satisfaction is one of the most important factors in successful business strategy”, Leo (2000) also commented that for an ethical organisation, his major priority should be on the satisfaction of his customers. Ferrell, Maignan and Loe (1998) agrees and added that, though customers are put first, does not means the company should ignore the employee, environment and other stakeholders, an ethical organisation incorporates all its stakeholders in its social responsibility” they concluded that “workers in an ethical climate must supports and contribute to the understanding of needs and concern of the customers. Ethical conduct towards the customers, will build a strong competitive advantage that could show to a great extent, positive effect on the organisation effectiveness and efficiency”. As said earlier, when workers are satisfied which leads to their commitment, it enables them in satisfying the customers with quality products. Unethical climate for workers is compromising the quality of the organisation which affects the customers as much as the company itself. Ferrell, Maignan and Loe (1998) commented that, “employees working with ethical organisation believe they must treat their partners respectfully regardless of who they are or whether they operates inside or outside the organisation, it becomes essential for them to provide the best possible value of service to all customers”. To a large extent, the workers commitment contributes to the quality position of the organisation as well as gaining competitive advantage for the organisation, an ethical climate will also positively affects the company’s financial position, since the quality of service produced by the workers, enables customers satisfaction, improve the company’s reputation, improves the quality of service which could invariably keep their customers as well as attract new customers. (Michael and Ferrell 1996)

Investors are also interested in the ethical standard of an organisation, the social responsibility and the reputation of the company in which they wish to invest in is of major concern to them, they are also aware of the fact that an “ethical climate is the foundation of efficiency, productivity and profit” (Ferrell and Ferrell 1998) despite this some investors are willing to invest money in the securities of a company but they are first in need of finding out how ethical the organisation is. Negative publicity and legal issues are likely results of organisations not been ethical which and leads to a fatal effect on the organisations performance and growth, and this could out rightly discourage an investor.

esearch has proven that clothing companies that are ethically behaved, emphasis on the importance of human right and engages in business ethics as well as social responsibility are often better in their financial base, therefore business ethics and social responsibility are becoming a major managerial strategy in planning for profit maximisation. Rather than just been a set of rules compliable on organisations, it has become a managerial instrument in gaining competitive advantage. Isabelle Maignan (1997) described that “ethical citizenship is positively associated with return on investment, return on asset and sale growth, it is defined as the extent to which businesses take on the economics, legal and ethical discretionary responsibilities placed on them by their various stakeholders”. Graves and Waddock (1993, 1997) commented that “company cannot be a good corporate citizen, nurturing and developing an ethical organisation climate unless it achieved adequate financial performance in terms of profit, they continue that companies with great resources regardless of their sizes, have the means to practice corporate citizenship, at the same time serving their customers, valuing their employees and establishing trust with the public”.

3.0 Chapter Three

3.1 CONCLUSION AND RECOMMENDATION

The value of business, in wealth and employment creation cannot be underrated, as it commensurate the quality of life and the steadfastness of the economy. Furthermore business role in improving the standard of living is essential, for this reason an accurate business ethics need to be put in place, to uphold the human right and sustain the healthy standard of living, as well as a green environment. Business ethics goes beyond sets of rules and regulation; emphasis should be laid on the importance of pronouncing an ethical climate, as it is beneficial to both to the company, its stakeholders and the environment. More importantly Human rights need to be respected, and business ethics goes a long way in protecting and promoting human rights.

Having understood business ethics practice in a clothing retail company, it can be obviously seen, that an adequate business ethics is a good instrument for upholding human rights standard. Considering the factors that affects business ethics in the business world, such as globalization, it can still be said that a good business ethics put in place may not only benefits the society but could also serve as a good managerial strategy to maximise the companies goal. A number of corporation has shown their interest and have adopted a proper business ethics to be put in place, stories of child labour and workers exploitation have reduced to an extent as the alarming of unethical practices by the clothing companies had been raised by the media. Levis Strauss for instance was the first clothing company to pronounce ethical standard to protect human rights, it stop a $40 million investment to campaign for human right (Jean-Paul Sajhau 2000)

Global business operations include distribution, pricing, development and promotion of commodities across the globe, business should not only adhere to the value and ethical standard of his indigenous country but should also respect the cultural diversity and respect the ethical standard in other countries of operation. Special consideration should be given to cultural issues in the business context as ethical issues are often been raised as a result of cultural difference. Global clothing retail companies should operate on a global trend, though ethical issues may arise as a result of diversity in culture, basic ethical conducts such as fairness, integrity, truthfulness and equality should be pronounced and respected.

Common ethical issues in the clothing retail companies include, child labour, poor working environment, discrimination, sexual and harassment and workers exploitation, though this issues are against the law in most developed country such as US where discrimination is prohibited, and UK where child labour is not allowed, yet this issues still exist within the corporations subcontractors in the developing countries and are justified on the bases of cultural diversity. Clothing companies should pay more attention to these issues and endeavour to understand the human right standards in all the countries or regions where they operate their business. However the corporate strategy defines how the organisation will use its resources to achieve its objective and goal, resources including human and financial resources. The performance and value of the organisation therefore depends on his corporate strategy and its implementation, the clothing retailer should therefore consider these facts in formulating its corporate strategies.

– Business strategy should demonstrate the value of the workers, customers, public and the other stakeholders

– Business strategy should demonstrate and embrace ethical nature of business operations

– Business strategy should understand and consider the implication of the strategy implemented on the stakeholders.

– Business strategy should include check and balances to ensure that all polices put in place are respected and accurate charges should be laid on it violation (http://www.oecd.org/dataoecd /61/23/1900037.pdf)

Finally, having realised that business ethics incorporates more benefits than organisational performance; clothing retailers are therefore encouraged to exhibit honesty, fairness and integrity considering their potential contribution to the environment, as well as to their workers and the customers. If all business understands the benefits of business ethics and social responsibility especially as an instrument of upholding human right standard many nations will benefits from it.

REFERENCES

A. B.Carroll, (Mar 1999), “Corporate Social Responsibility: Evolution of A Definitional Construct”, Business and Society. Vol. 38, Pp. 268-295,

Andrew C. and Dirk M, (2007), “Business Ethics” 2nd edition, Oxford University press.

Albert Z. Carr, “Is Business Bluffing Ethical,” Harvard Business Review (January-February, 1968) 2-8.

Barnett, Tim (2003) “Ethics Code Awareness, Perceived Ethical Values, And Organizational Commitment”, Journal of Personal Selling & Sales Management

Bernard J, Jaworski and K. Kohli (July 1993), “Market Orientation: Antecedents and Consequences”, Journal of Marketing Pg. 53.

Chris Macdonald, Michael McDonald, and Wayne Norman (August 2002), “Charitable Conflicts Of Interest”,Journal of Business Ethics39:1-2, 67-74. (P.68)

China National Textile and Apparel Council (2007), “Social Responsibility of the Chinese Textile and Apparel Industry”, Annual Report Pg 5

Cory, J. (2005). “Activist Business Ethics”, Boston, Springer: 7-34.

Duska, R. (2007). “Contemporary Reflections on Business Ethics”, Boston, Springer: 51-62.

Drucker, P. (1981). “What Is Business Ethics?” The Public Interest Spring (63): 18-36.

Eric H. Beversluis, (Feb I987), “Is There Such Thing as Business Ethics”, Journal of Business Ethics Pg. 81 -88

Falck O., Heblich S. ((2007), “Corporate Social Responsibility: Doing Well By Doing Good”, Business Horizons 50, 247-254.

Ferrell, O. C, J. Fraedrich, and L. Ferrell (2008), “Business Ethics”, Boston: Houghton Mifflin Company, Boston NY

Farrell, Helen, and Brian J. Farrell (1998), “TheLanguageof Business Codes Of Ethics: Implications of Knowledge and Power,” Journal of Business Ethics, 17 (6), 587-601.

Ferrell, O.C., And Larry G. Gresham (1985), “A Contingency Framework for Understanding Ethical Decision Making In Marketing”, Journal of Marketing, 49 (3), 87-96

Godfrey, P. And Hatch, N. (2007), “Researching Corporate Social Responsibility: An Agenda for the 21st Century”, Journal of Business Ethics 70:87-98

Isabella Maignan (1997), “Antecedent and Benefits of Corporate Citizenship: A Comparison of Us and French Business”, Unpublished Dissertation, University of Memphis.

Jean-Paul Sajhau (2000), “Business Ethics in the Textile, Clothing and Footwear (TCF) Industries”, International Labour Congress (ILO) Sector Publication

Jiang Q.J. And Gu Q.L. (2008), “Corporate Social Responsibility And Enterprise Strategy Choice Shanghai People”, Publishing Company, Shanghai (In Chinese)

John Hooker (April 2003), “Why Business Ethics”? Carnegie Mellon University

Kotler P. And Lee N. (2005), “Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause”, John Wiley & Sons, Inc. Hoboken, New Jersey. Pp, 7-9

Leit�o, Jo�o and Silva, Maria Jos�, (November 2007). “CSR And Social Marketing: What Is The Desired Role For Universities In Fostering Public Policies”? Mpra Paperno. 2954, Posted 07

Loe, Terry W., and William A. Weeks (2000), “An Experimental Investigation of Efforts to Improve Sales Students’ Moral Reasoning”, Journal of Personal Selling and Sales Management, 20, 4 (Fall), 243-251.

Manuel G. Velasquez (2001), “Business Ethics Concepts & Cases”, Anderson University Dba

Matthew W. Seeger, (2001) ‘Ethics And Communication In Organizational Contexts: Moving From The Fringe To The Centre”, American Communication Journal, Volume 5, Issue1, (Bio)Department Of Communication, Wayne State University
Matthew_Seeger@Wayne.Edu

McCabe, Donald L., Linda Klebe Trevino, And Kenneth D. Butterfield (1996), “The Influence of Collegiate and Corporate Codes of Conduct on Ethics-Related Behaviour in the Workplace”, Business Ethics Quarterly, 6 (4), 461-476.

McClaren, Nicholas (2000), “Ethics in Personal Selling and Sales Management: A Review Of The Literature Focusing On Empirical Findings And Conceptual Foundations”, Journal Of Business Ethics, 27 (3), 285-303

Mellisa A. Baucus and David A. Baucus (1997), “Paying the Payer: An Empirical Examination of Longer Term Financial Consequence of Illegal Corporate Behaviour”, Academy Of Management Journal.

Michael D. Hartline and O.C Ferrell (Octber 1996), “The Management of Customers Contract Service Employees: Empirical Investigation”, Journal of Marketing Pg. 52 – 70

Milton Friedman, “The Social Responsibility of Business Is To Increase Its Profits,” New York Times Magazine (September 13, 1970). Reprinted In Thomas Donaldson and Al Gini, Eds., Case Studies in Business Ethics, 4th Ed., Prentice-Hall (19xx) 56-61.

Norman E. Bowie (2002), “The Blackwell Guide to Business Ethics”, 1st edition, Blackwell publisher Inc. Massachusetts 02148 USA.

O.C. Ferrell, Isabella Maignan and Terry W. Loe (1998), “Corporative Ethics + Citizenship = Competitive Advantage”, Florida State University Working Paper.

Porter. M. E.and Kramer. M. R. (Dec, 2006), “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility”, Harvard Business Review, 1-16.

Paul W. Taylor (1975), “Principles of Ethics: An Introduction to Ethics”, 2nd Ed (Encino, Calif: Dickenson,) P.1

Robin, D. P. And R. E. Reidenbach (1987), “Social Responsibility, Ethics, and Marketing Strategy: Closing the Gap between Concept and Application”, Journal Of Marketing 51(1), 44-58. Doi

Ruth Rosselson (May/June 2005), “Conscience Clothing”, the Resurgence TrustPublishes Resurgence Magazine: Registered Charity Number: 1120414

S. B Graves and S. A Waddock (1993), “Institutional Owners and Corporate Social Performance; Maybe Not So Myopic After All, Proceedings Of The International Associatoion Of Business And Society”, San Diego.

Susan Gaines (November – December 1997), “Continuing To Make Sears A Compelling Place To Work, Shop And Invest”, Business Ethics. Pg. 10 – 11

S. Waddock and S. Graves (1997), “The Corporate Social Performance – Financial Performance Link”, Strategic Management Journal Pg. 303

Taylor, P. W. (1975), “Principles of Ethics: An Introduction to Ethics”, 2nd Edition (Dickenson, Encino, Ca).

Timothy Sexton (December 07, 2007), “Organizational Behaviour and Ethics”, Business and Finance journal

US Department of Labor, Bureau of International Labor Affairs (1996)”, The Apparel Industry and Codes of Conduct: A solution to the international child labor problem?”, Washington, DC, 1996, 242 pp.

Vernon R. Loucks, Jr (March – April 1987),” A CEO Looks at Ethics”, Business Horizons. P. 4

Wroe Alderson, (1965),”Dynamic Marketing Behaviours”, Homewood, Ill: Irwin. P.320

Zhao Linfei, And Gu Qingliang (2009), “Corporate Social Responsibility In China Apparel Industry”, World Academy Of Science, Engineering And Technology

Websites:

Global Exchange: Facts about Nike Http://Www.Thirdworldtraveler.Com/Boycotts/Nikefacts_Gx.Html

The Global Compact

A Guide for Integrating Human Rights into Business Management

http://www.reliefweb.int/rw/lib.nsf/db900sid/PANA7DGE9M/$file/ohchr_dec2006.pdf?openelement