Read and React #5

The most interesting concept I explored in my Human Resource management class was International Labor Standards.

Using information I found on Google Scholar PDF (http://www.nber.org/papers/w5632.pdf)

In order to maintain the consistency of a reputable international company, many have began to adopt International Labor Standards. These standards are created to put in place regulations that ensure a safe, discrimination free, and environmentally friendly workplace. Over the past decade, many United States based companies have resorted to outsourcing production. With the benefit of low production costs, they also have the downside of scarce safety procedures and workers rights. One organization that has changed this international inconsistency is the International Labour Organization. By adopting a similar goal of the ILO, the Walt Disney Company too has created it’s own unique international labor standards.

In the year 1996, The Walt Disney Company established it’s own international labor standards “Code of Conduct”. Consistent with the ILO constitution, this code of conduct reinforces the strong belief in, but not limited to “working conditions, compensation and benefits, working hours, nondiscrimination, health and safety”. With dozens of goals in mind, a team consisting of “75 professionals all over the world” work in unison to create relationships with vendors and licensees which are consistent to the reputation The Walt Disney Company has established. These professionals are tasked with monitoring compliance, working with other brands, and reporting to executives in regards to production.

As minor as it may sound, these standards put in place are essential to The Walt Disney Company and its highly respected reputation across the globe. The company is willing to go to any extent to ensure the brand is properly represented in any output. In order to guarantee the cooperation and communication between the brand and its manufacturers and vendors, The Walt Disney Company ILS team has created a “training and education” sector. The job of this team is to outreach to every branch of production and instruct each on the desired consistency, reputation, and of course the ILO “code of conduct”. With it’s ability to reach all ends of the company whether it be subcontracted or not, the company monitors the compliance of its programs very closely.

According to The Walt Disney Company Corporate website, they have created a database where all monitoring can be held and accessed for assessment. Their approximate 40,000 factories and over 6,000 vendors all report to this database, and records are kept on file. With the creation and use of this database, executives are again able to make appropriate changes in the administration to adjust, and maintain their standards.

Included in the code of conduct, The Walt Disney Company has pointed out a few key points in which its standards confront. Relying on the emphasis of safety, ethics, and respect the code outlines the minimums for which how business should be conducted across the board. Included in this outline are child labor, involuntary labor, nondiscrimination, harassment, health and safety, compensation, environmental protection, local laws, subcontracting and most importantly publication. The Walt Disney Company makes sure to include this stipulation to promise the international communication of standards and appropriate provisions to all employees who fall under the code.

One of the most important aspects of the code is the responsibility to cooperate and work with local governments. This aspect is not limited to government but also applies to civil society organizations, local tribes, and competing local businesses. By including this into their code of conduct, The Walt Disney Company demonstrates its transparency and its willingness to work with any group or organization to ensure adequate workers rights, and environmental protection across the globe. An example of this transparency is the company’s recent announcement to supply $2.3 million in grants to supply chains. Designed to improve workplace conditions, the plan includes helping Indian, Chinese, and Brazilian factories with funds. In India, the plan is to “develop and implement a financial literacy program for female factory workers.” In China, the plan includes “training and education of occupational health and safety.” In Brazil, the plan also includes “training and education of occupational health and safety”.

With all of these standards repeated and outlined throughout the code, it is easy to say they are important to The Walt Disney Company. One of the largest issues in the global marketplace’s production sector is the inadequate compensation of workers. The Walt Disney Company’s dedication and willingness to pay an unlimited amount of attention to the topic further proves that the reputation of the company is not only important, but so is compliance of fair wages for it’s workers. Unlike other multinational corporations, The Walt Disney Company mandates that all subcontractors, and manufacturers recognize that wages are essential to employee’s basic needs.

By setting minimum wage requirements, The Walt Disney Company has been able to accomplish what many companies have failed to achieve, establishing their own minimum wages. This unique compensation of workers also includes “overtime pay, maximum hours, piece rates, and legally mandated benefits.” The code also states that if there is no “legally prescribed rate”, that The Walt Disney Company will create one that is suitable to the situation and properly compensates for the work done. By utilizing this method, The Walt Disney Company is able to promote a unique experience as an employer, and guarantee improved employee satisfaction.

The International Labor Standards are overall important to The Walt Disney Company because of the pride it in stills in it’s workers. It establishes a platform on which the company may continue to expand its growing consistent reputation, and provides workers with a sense of gratification. By being one of the few companies to heavily rely on these standards, it sets The Walt Disney Company apart from its global competitors. With the greater interest of the workers and the environment on the top The Walt Disney Company’s list, they make their output and worker input their main priority. When a brand’s image is at stake it is best to go the ethical route, and always be on the side of the employees.

 

 

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