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Labor Conditions

Team Members Bryce Kain - Finance Concentration - May 2012 Trey Kirby - Finance Concentration - May 2012 Billy Huddleston - Operations and Supply Chain - December 2013 Henry Hernandez - Industrial Engineering - May 2012. Our Teams Management Philosophy

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Labor Conditions

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  1. Team Members Bryce Kain - Finance Concentration - May 2012 Trey Kirby - Finance Concentration - May 2012 Billy Huddleston - Operations and Supply Chain - December 2013 Henry Hernandez - Industrial Engineering - May 2012 Our Teams Management Philosophy As managers, we understand that social norms vary from culture to culture. Although child labor may be common in various countries, our company’s goal is to provide a education to societies on the detrimental effects of poor labor conditions for children and provide a more meaningful avenue for children to live. Labor Conditions

  2. Coca Cola Company • Use of Child Labor in sugarcane fields in El Salvador • 5,000 to 30,000 children were working in fields some as young as 8 years old • Children exposed to direct sunlight, smoke inhalation, burned feet as well as dangerous objects such as machetes and other sharp tools • Coca Cola Company benefiting indirectly from the use of child labor in these fields • “ Child Labor is rampant on El Salvador’s sugarcane plantations”…“Companies that buy or use Salvadoran sugar should realize that fact and take responsibility for doing something about it.” • Lobe, Jim. "Coke Benefiting From Child Labor in Sugar Cane Fields." Home |Common Dreams. 10 • June 2004. Web. 19 Mar. 2011. <http://www.commondreams.org/headlines04/0610-0 • 1.htm>.

  3. The IKEA Way On Preventing Child Labor “IKEA respects different cultures and values in countries where IKEA operates and sources its products, however does not compromise on the basic requirements regarding the Rights of the Child. “The IKEA Way on Preventing Child Labour”, our code of conduct on child labour, has been established in order to make the IKEA position clear to suppliers and their co-workers, as well as any other parties. The requirements in this code of conduct are mandatory to all suppliers and their sub-contractors.” • Personal Virtue • Contributing Liberty • The IKEA Way On Preventing Child Labor. Web. 19 Mar. 2011. <http://www.ikea.com/ms/de_AT/ about_ikea/pdf/IWAY_preventing_child_labour.pdf>

  4. How to change the labor conditions of child labor • Fight for better conditions for children whom are still in development. • Pay companies to randomly audit companies within the supply chain/extended supply chain and require other companies within the supply chain to do the same. • Follow UN Standards • Require companies to fix issues on the audit within a given timeframe or take immediate action to terminate agreement with said company. • Have age limits for certain activities in the work place. • Follow stricter rules for younger employees. • Strict documentation to ensure all rights and policies are followed. • Keep everyone within the supply chain informed about all practices and production standards within direct and extended supply chain, offer strict punishment for any and all discrepancies.

  5. Advantages • Prohibiting the employment of children with out exception gives society the opportunity to improve on common shortcomings • Preventing children from working strenuous jobs allows the children to develop more naturally and healthy • Since IKEA clearly states that no child labor will be accepted under an form or fashion this form of transparency will always eliminate suppliers unknowing of IKEA’s policy involving the employment of children • IKEA works to actively seek out better quality of life for children so that these children may have an opportunity to do something other than manual labor

  6. Disadvantages • IKEA will terminate business with suppliers that continue to employ children • Children who cannot work may not live in a family which can comfortably assist there needs • Leaving a supplier that wouldn’t comply to IKEA’s policy and code conduct causes both that particular community and IKEA to lose money

  7. Recommendations • Companies to disclose everything that they do about suppliers • Use the FLA 3.0 Process • Work with factories that understand and are committed to the company philosophy of not using child labor • A certain portion of their income should be set aside to over look suppliers working condition, through foreign NGO’S.

  8. Works Cited Lobe, Jim. "Coke Benefiting From Child Labor in Sugar Cane Fields." Home |Common Dreams. 10 June 2004. Web. 19 Mar. 2011. <http:/ /www.commondreams.org/headlines04/0610-0 1.htm>. The IKEA Way On Preventing Child Labor. Web. 19 Mar. 2011. <http:// www.ikea.com/ms/de_AT/about_ikea/pdf/ IWAY_preventing_child_labour.pdf> "Coke's Crimes in El Salvador.” www.killercoke.org. Web. 20 Mar. 2011. <http://killercoke.org/crimes_el_salvador.php>.

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