marketing team, launch a fashion line a global brand. However, week launch unconfirmed press reports child labour present supply chain ( existing product lines products launch).
Fashion and child labour
In brief, the problem encountered at the organization is represented by the emergence of media reports arguing the existence of child labour practices in the company’s foreign manufacturing plants. This issue is always a stringent one, but even more so now, as the reports have been released prior to the launch of a new fashion line by the firm.
In a general setting, the recommendation is that of addressing the accusations and making them a top priority for the institution. Nevertheless, in the current situation, the company also struggles to launch its new product line within the market. The organization is as such faced with the need to choose which issues it should mitigate with more priority.
On the one hand, there is the new launch, in which the company had invested impressive sums of money and which generates important impacts on the future of the firm. On the other hand, there is the risk generated by the new press reports, which could severely damage the company’s image. Additionally, aside from the image, the child labour accusations could also materialize in investigations, which — if proving the accusations correct — will result in legal and financial sanctions for the company. Furthermore, these image and legal problems would further impact the company’s new launch and would as such compromise it.
In such a setting then, it becomes obvious to note that the top priority at the fashion company is represented by the management of the accusations of child labour in its foreign plants. In this order of ideas, the following punctual recommendations are forwarded:
(1) The organization should recognize the problems raised by the media reports and should address them. In such a setting, emphasis should be placed on the company acknowledging the accusations, and stepping in to address them. At this stage then, it would be erroneous of the firm to avoid the accusations. This recommendation could be implemented by company representatives engaging in open discussions with the media and discussing the accusations and also promising to address them.
(2) The company should develop and implement an internal audit in the foreign plants where it ensures the manufacturing operations. At this specific level, the organisation would form a delegation of representatives to travel to the foreign plants and assess the labour practices implemented by each plant. Also, at this level, emphasis should be placed on the assessment of the local laws regarding age of employment and other labour reglementations.
(3) Based on the problems identified, the company should move on to implementing sanctions to the identified problems. In this case, if they identify indeed that child labour infringements are present in its plants, then it should immediately terminate the respective practices and punish those who are responsible for their occurrence.
(4) Then, at this level, it is pivotal for the company to ensure that such situations do not occur again in the future. In such a setting, it should create an internal code of conduct which clarifies what is considered acceptable and unacceptable behaviour in the labour relationships. This code of conduct should be implemented throughout the entire company, also including its foreign plants and the manufacturing locations of its partner companies. Furthermore, this plan should be a universal one, in the meaning that it would not be based on national child labour regulations (as these might be more permissive in some countries), but it would integrate the most protective codes of conduct, inspired by U.S. And international legislation, as well as moral conduct and other values promoted by human rights organizations.
(5) Last, the company should maintain an open and honest relationship with the stakeholders. In such a setting, it should promote transparency by communicating the results of its internal audit, as well as the measures taken and the new commitments to respecting labour laws in all of its operational facilities. This commitment and the audit results could be communicated through the organisation of a press conference, to which the media representatives would be invited, and where they could also ask questions. The focus on the company should fall on openness and transparency (Ace, 2012).
Due to the impending launch of the new product line, the company would best address the child labour accusations as soon as possible, with urgency even. At the specific level of the launch, this should be postponed for a short period of time, until the company is able to resolve its current child labour accusations. Once it clears its name and gains the trust and respect of the stakeholders, it will be even more successful in launching its new products. At this level, it is better to wait with the campaign than to launch it at a time when the company is being accused.
References:
Ace, C. 2012. Successful marketing communications. Routledge.
Avraham, E., Ketter, E. 2012. Media strategies for marketing places in crisis. Routledge.
Hut, M.D., Speh, T.W. 2012. Business marketing management: B2B. Cengage Learning
Kotler, P., Keller, K., Brady, M., Goodman, M., Hansen, T. 2009. Marketing management: first European edition. Pearson Education.
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