Labor -
The New Tools of Trade - Sun and Planets Spirituality AYINRIN
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Author:His Magnificence the Crown, Kabiesi Ebo Afin! Oloja Elejio Oba Olofin Pele Joshua Obasa De Medici Osangangan Broadaylight.
Today, most multinationals have a conspicuous social conscience. They publicize their internal codes of conduct, monitor labor conditions in their global supply chains, and require suppliers to meet basic labor practice standards. But despite efforts to be better global citizens, companies by themselves are unable to eliminate abuses in their supply chains. In fact, so long as the countries with which they do business turn a blind eye to labor abuses or can’t manage the problem, companies have few options—short of canceling contracts—to reduce exploitation and safeguard their reputations.
Part
of the blame for this situation belongs to corporations themselves.
During the past decade, they have agreed to take on what ought to be the
work of the state. Large multinationals are today running programs on
community development, health care, and legal education throughout the
developing world. But the governments of these countries remain
relatively free from accountability for their business environments.
This
makes no sense. If companies want to see improved labor practices in
the countries where they do business, they should support efforts to
include labor standards in trade agreements. But the business community
has long been suspicious of this kind of regulation. This is not only
shortsighted but increasingly out-of-date, as the recent wave of U.S.
and European trade agreements shows. These
trade initiatives emphasize carrots instead of sticks, with both the
U.S. and European Union rewarding trade partners who protect working
conditions rather than only punishing those who don’t. For example, the
latest EU Generalized System of Preferences, a program for granting
tariff reductions to developing-country products imported into the EU
market, now has a measure to allow additional tariff reductions to
countries that demonstrate compliance with the International Labor
Organization’s (ILO) core labor standards. To date, Sri Lanka and
Moldova have benefited from this special preference. Their exports to
the EU are now eligible for an additional 5% tariff reduction, giving
these countries some advantage over competitors.
The
U.S.–Cambodia Bilateral Textile Trade Agreement is another example.
Created while the international textile quota regime was still active,
it offered Cambodia additional textile export quota in return for
improvements in textile workers’ conditions. By bringing in the ILO to
monitor conditions in Cambodian factories, the agreement helped remedy a
problem common in many developing states: good laws but weak
implementation. The ILO’s findings were reported not only to the local
business in question but also to international customers and the
Cambodian government, prodding the various parties to work together to
improve compliance with the country’s labor laws. The recently signed
U.S.–Chile agreement is also intended to help enforce existing laws. If
either party is fined for violations, the funds remain within the
country being fined and are earmarked for enforcement. They may be used
to hire and train labor inspectors, for example.
These
kinds of policy innovations don’t eliminate the need for multinationals
to pressure irresponsible suppliers. But they can turn the dilemma of
labor abuse into a diplomatic matter, forcing greater accountability on
the part of all governments. When trade agreements and labor standards
are linked this way, local workers benefit from improved conditions,
governments and local businesses benefit from more favorable terms of
trade, and multinational customers insure their most valuable asset:
their reputations.
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