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Breaking a Sweatshop
Philip M. Berkowitz
05/03/2004
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Whiter than White
How can a multinational company avoid becoming a target?
First, commit to carrying out employment practices that meet and exceed
internationally recognized guidelines. Numerous international
organizations have identified core labor standards. Chief among these are the
International Labour Organization (ILO), a United Nations affiliate, which has
adopted a Declaration of Principles. Other well-known statements of principle
include the Global Sullivan Principles of Social Responsibility, the
Organisation for Economic Co-operation and Development Guidelines for
Multinational Enterprises and the Global Compact, adopted in July 2000 by the
United Nations.
These codes of conduct all identify similar basic
principles, including: the right to bargain collectively; equal employment
opportunity and nondiscrimination; prohibitions against child labor and forced
labor; adherence to local safe workplace laws (or, if these do not suffice,
adopting best practices); consulting with workers’ groups about layoffs and
similar adverse actions; grievance or dispute resolution procedures; and use of
internal or external monitors to audit employment practices.
These statements
of principle are not binding on international companies. Rather, they are
guidelines. Nevertheless, companies ignore them at their own peril. Of course,
companies doing business overseas also need to familiarize themselves with the
binding labor laws of the countries in which they are doing business. Many
countries’ labor laws and labor tribunals recognize substantial employee rights
regarding unfair dismissal and other employment practices.
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