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Law
Breaking a Sweatshop
Philip M. Berkowitz
05/03/2004


The following is a blueprint for best practices:

•  Adopt practices embracing core labor standards. Multinationals are increasingly recognizing that these standards are consistent with their corporate codes of conduct.

• Implement procedures to reasonably ensure that policies are translated into fair employment practices. These steps include developing labor audit procedures, including detailed questionnaires for overseas partners.  

• Make sure that your partner is committed to your goals. Create a confidential communications channel to handle complaints from your contractors’ employees. No facility is perfect; there is never total compliance. But rather than walking away from difficult situations, a responsible multinational will try to work with its local contractor and help the workers. If the company leaves when it finds a problem, the employees may be out of a job.

• Engage as many auditors as are necessary to assure that quality standards are met.  Issues such as the facility’s prior history, reputation, housing for workers, size and location are factors that independent monitoring companies usually consider. Pre-production surprise audits are most effective.

Exporting labor overseas carries substantial responsibility as well as risk. It also gives multinationals the unique opportunity to showcase, on an international stage, their essential, core values. Exporting socially responsible values is the key to success for the 21st century multinational.

Philip M. Berkowitz practices labor and employment law on behalf of employers in New York City and is a frequent lecturer on employment law.
 

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