Noland Stores's Global Supply Chain and Labor Standards

Noland Stores Case Answers
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Noland Stores Case Answers
1. Action plan: 30/60/90 days. What has to happen to make this recommendation work?

First 30 Days

First 60 Days

First 90 Days

IHR

Set up meetings with IHR over the violations

Agree with IHR on the best way possible for both the company and unemployed workers from Bukra

Establish a working relationship with IHR to prevent future violations of the body’s standards

Strategy

Evaluate the company’s existing strategy in dealing with suppliers

Adjust performance indicators to match IHR standards

Establish a monitoring framework to oversee the conditions of the factories

Suppliers

Reexamine all the suppliers for the company

Identify training needs for suppliers below standards

Administer training to specific suppliers

Former Bukra Workers

Identify the employment status of former Bukra workers

Facilitate the employment of at least 50% of unemployed former Bukra workers

Facilitate 100% absorption of former Bukra workforce in Indonesian factories

To make this recommendation work, it is important that Noland Stores first takes responsibility for its failures in the Bukra disaster. As seen in the case, the IHR has determined that the company violated its standards as it refused to provide severance and death benefits to Bukra’s former workers. As an international organization that promotes better working conditions in third-world countries, IHR has immense power that can jeopardize the operations of Noland Stores. In this sense, the company needs to arrange several meetings with the organization and agree on the way forward. This would be instrumental in protecting the reputation of the organization and ensuring it is sustainable. For the action plan to work, the company needs to reassert its commitment to protecting the affairs of workers in factories that supply it with products. Apart from reevaluating its existing suppliers and setting up a monitoring framework, the company also ought to administer training where necessary and ensure that former workers of Bukra factor are employed.
2. What are some points and counterpoints in the debate over “sweatshops”? That is, should manufacturers be forced to leave factories and countries that violate fair labor standards? What are the consequences of doing so?
Sweatshop is a predominantly factory work environment that violates even the most basic internationally recognized labor laws (Kuyumcuoglu, 2021). Poor working environment, long working hours, use of child labor, low wages, and deficient safety standards are some of the most noticeable characteristics that define a sweatshop. Every company is duty-bound to ensure that the working conditions of its labor force are up to the standards according to the laws on business ethics (Sarpong, 2018). The consumers, the manufacturers, the international community, and even the governing bodies often play a role in the existence of sweatshops, especially in developing countries. Some people may argue in justification of the continued use of sweatshops that a company's operations in countries where sweatshops have been the norm play a role in upholding the economy and lowering the unemployment rate. Nonetheless, condoning unfair labor standards paints a picture of a company with no moral standards. Therefore manufacturing companies whose operations are in countries with widespread violation of fair labor practice should be willing to pay the price for morality's sake.
The use of sweatshops generally lowers the cost of production by greatly lowering the cost of acquiring labor. Suspending operation in c...