LACK OF CSR, A DISADVANTAGE OF GLOBALISATION?

Over the past century,advances in technology especially communication and transportation,methods of conducting business, and production chains have undergone significant changes. Globalisation has made possible the interchange of ideas,views,products and also manufacturing. Production chains including the fashion industry have been heavily driven by consumer demand thereby most major retail companies to go over-seas, opting for global sourcing other than domestic production.These companies whose sole goal is maximisation of profit and efficiency in the supply chain.The developing countries are happy to receive(in some cases invite them) these foreign businesses that come to take advantage of cheap labor and material resources, as such investments could lead to development in the country and also increase GDP.However, blindness towards other factors other than profit has caused some controversial problems.
Corporate Social Responsibility and company ethics are key players in building a company's brand image and giving a reason for consumers to trust and have confidence in a particular brand.As the reputation of a business increase,it reduces its risks.Businesses have a responsibility to the society,employees,consumers,and even the environment.Primark is an example of  a company that had its profit plunged after dealing with child labor issues and other irresponsible behaviours,a lack in its CSR.

Primark is a big retail chain constituting of over 200 stores across Ireland,the UK,Spain,Netherlands,Germany,Belgium, and Portugal.A clear example of Globalisation.Its products includes clothing's and footwear for children,men and women, accessories, lingerie,and homeward,It employs approximately 36,000 people. Primark is well known for selling clothes at the budget end of the market,sourcing cheaply from 600 major suppliers in 16 countries. Its success is based on, most evidently,only making them in the most popular sizes, and buying stock in huge bulks and varieties.Also, to maintain low prices, Primark tries to keep sale volume high, retain margins low,advertising minimal, produce in a lean efficient manner.However, factories supplying Primark in Bangledash have been surveyed to have precarious working conditions and workers being payed an average of £19.6 monthly,less than half of the living wage of around £44.82.Also, the are subjected to working unto 80hours a week which is even against the Bangledashi law.More than 60% of the women surveyed described how they were subjected to obscene and sexually suggestive language in the work place..http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10026307/Bangladesh-factory-collapse-Primark-to-pay-compensation.html

Many reports have shown a decline in company's social responsibilities and unethical practices increase in the beginning of the 21st century as this is not just a problem only for Primark.Gap,an American mass market retailer was also involved in a class action lawsuit filed by sweatshop workers in Saipan.The allegations included ''off the clock'' hours,where workers were not paid for working overtime in unsafe working conditions.

Globalisation is meant to boost the local economy and improve the standard of living of people,has lacked in proper controls on manufacturing thereby increasing the rate of poverty and making the poor people poorer.Notwithstanding,everybody would not benefit directly from Globalisation.