The rapid growth and intense competition have forced employers to reduce the price of their products, and they do so by employing cheap labor as possible. Exploitation of workers in difficult conditions is a major contributor to profits of the major companies, but creating harsh working conditions for millions of workers. Corporations exploit the weaker groups in society - uneducated women, immigrants, teenagers and even children. The salaries of these workers are shockingly low even by the standards of the least developed countries. In many cases, in addition to low wages, workers are not entitled to basic social benefits such as days off, vacation or illness, limiting the number of working hours, insurance against accidents and pension insurance.
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Their Headquarter is in Oregon, where processes of design, development and marketing of footwear, are carried out, but production is carried out in different countries (Beder, 2002). For example: Air-Max shoes are made from 52 different raw materials that come from five countries. Every shoe passes through 120 hands of workers in the chain of production, requiring full coordination of the arrival of raw materials to the factory and production stages. The company owns about 150 manufacturing factories in Asia, employing about 350 thousand people (Phalguni, 2014). According to data, textile industry production worker earns about 38 dollar per hour, working week of 37 hours, compared to worker in the same industry Indonesian textile industry production worker which earns 0.5 dollar per hour in a 70 hours work week (Mbiyimoh, 2015). Chinese manufactures working more than 12 hours a day, seven days a week, getting a leave of one day once a month. There is no doubt that the exploitation of workers is a serious phenomenon that violates basic human rights and all of this for luxury goods designated for developed countries, with the knowledge of the major companies. Profit line cannot be the most important thing the company and their shareholders, even at the cost of loss of life. Case in point is Apple where workers in factories that produce iPhones died resulting from overwork (Fullerton, …show more content…
In Fair trade, the purpose of marketing is not increasing profits. Fair trade practices reduce brokerage fees between the manufacturer and the consumer, and it can be returned to the manufacturer a higher percentage of the retail price for the product. Trade fair returns greater share of the profits back to producers. One of the requirements of the standard fair trade is that the manufacturing process will occur in the process shared, in order to ensure decent working conditions and the participation of all producers in decisions about the production process. Enterprise distribution and standards of fair trade are encouraging the cooperatives of producers to provide all their members health benefits, childcare and option loans. In addition to encouraging the manufacturers to invest some of their profits back into their communities (Fair Trade website). One of the ways to encourage fair trade is with deliberate preference for consumption in peripheral areas and promoting social justice. All this can be done with the help of the cooperative economy calls for consumers to reinforce each other rather than the large
Their Headquarter is in Oregon, where processes of design, development and marketing of footwear, are carried out, but production is carried out in different countries (Beder, 2002). For example: Air-Max shoes are made from 52 different raw materials that come from five countries. Every shoe passes through 120 hands of workers in the chain of production, requiring full coordination of the arrival of raw materials to the factory and production stages. The company owns about 150 manufacturing factories in Asia, employing about 350 thousand people (Phalguni, 2014). According to data, textile industry production worker earns about 38 dollar per hour, working week of 37 hours, compared to worker in the same industry Indonesian textile industry production worker which earns 0.5 dollar per hour in a 70 hours work week (Mbiyimoh, 2015). Chinese manufactures working more than 12 hours a day, seven days a week, getting a leave of one day once a month. There is no doubt that the exploitation of workers is a serious phenomenon that violates basic human rights and all of this for luxury goods designated for developed countries, with the knowledge of the major companies. Profit line cannot be the most important thing the company and their shareholders, even at the cost of loss of life. Case in point is Apple where workers in factories that produce iPhones died resulting from overwork (Fullerton, …show more content…
In Fair trade, the purpose of marketing is not increasing profits. Fair trade practices reduce brokerage fees between the manufacturer and the consumer, and it can be returned to the manufacturer a higher percentage of the retail price for the product. Trade fair returns greater share of the profits back to producers. One of the requirements of the standard fair trade is that the manufacturing process will occur in the process shared, in order to ensure decent working conditions and the participation of all producers in decisions about the production process. Enterprise distribution and standards of fair trade are encouraging the cooperatives of producers to provide all their members health benefits, childcare and option loans. In addition to encouraging the manufacturers to invest some of their profits back into their communities (Fair Trade website). One of the ways to encourage fair trade is with deliberate preference for consumption in peripheral areas and promoting social justice. All this can be done with the help of the cooperative economy calls for consumers to reinforce each other rather than the large