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Case Study Of Bala Sport And Sweatshops

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Question:

Discuss about the Case Study Of Bala Sport And Sweatshops.
 
 

Answer:

Drivers of Globalization and its Impact on Bala Sport:

Drivers of globalization refer to the factors or forces that determine the context of the economic globalization. The drivers of globalization influence the cross border trades as well as determine the increasing interconnection across the global economy (block7.pdf 2017). This section discusses the impact of the globalization drivers on Bala Sport. Bala Sport is a Fairtrade certified football manufacturer based in Pakistan which manufactures handmade football and pays 10% premium on manufacturer cost to provide support to the workers family for healthcare and education.

Impact of the Globalization Drivers on Bala Sport:

The prime drivers of globalization are the cost, government, technological factors and the market. The impact of the drivers on Bala Sport is to be assessed in this section.

  1. Cost Drivers: Globalization influences the cost factor of the products of business for the organization. As a Fairtrade football manufacturer the company primarily focuses on the financial upliftment of the workers. The impact of the cost as a driver of globalization on Bala Sport determine the reduction of the input cost as the wages of the employees in the company shares a huge amount of cost from the manufacturing cost.
  2. Government Drivers: The actions by the government of decide the global economical environment. This also shapes the developing opening up of the states to the various market forces. The involvement of government in the business of the Bala Sport has projected a positive impact on the company (www.crowdfunder.co.uk. 2017). The government engagement in the Bala Sport business has ensured the inclusion of the authorized buyers of the products.
  • Technological drivers: Technology is one of the major drivers that has enabled and shaped the global economical business context with the enhancement of the interconnection among the cross border traders. However, the technological impact of the globalization on Bala Sport is not apparent, as the cost of the technological implementation will be high for the company.
  1. Market Drivers: Market is another determinate of the globalization that influences the business of the organization in the global context. For Bala Sport, the global market plays a vital and significant role in determining the profit and value the labor of the staffs. 89% of the consumers of Bala Sport are from UK. This company has made a global recognition for delivering products with high quality despite lacking the technological addition.

The most considerable driver for Bala Sport is the cost of the cost. The case study suggests that the price of the product creates the biggest problem for the company (the Guardian. 2017). In the case study, the co founder of the organization, Coull says that the people are not willing to buy a product from a not so popular brand and chose a popular brand, though that is not fair-trade.  Coull expresses his concerns over the fact that the cost for of the company is high due to the fair-trade policy and the people are reluctant and lacks knowledge about the issue.

The impact of the cost driver of globalization most considerable for Bala Sport as the company as well as the workers is suffering due to the reluctant nature of the people in buying the product. Another perception is there among the buyers that the Fairtrade products are crap without checking the quality of the product. This issue makes the cost of the product not effective for the business. Also, the company cannot compete with the other existing popular companies in the market. Moreover, the company pays 10% premium on the manufacturing cost for the welfare of the staffs.

 

Conception of Sweatshops:

The basic idea of sweatshops defines it as the employment practice by a business that is engaged one of the following conditions: forced labor, low wages, abusive management or union busting and health and/or health and safety violations (McKeown 2017). All the conditions affect the labor of the organization. They are however, to suffer from any of the conditions if the employment practice by the company is referred to the sweatshops. Moreover, the employees of the sweatshops are typically treated and dominated by the management of the company.

Ethical Acceptability of Sweatshops:

The conception of sweatshops gives birth to the dilemma about the ethical acceptance of sweatshops. However, the answer implies various ideas. There are some sweatshops and the actions of the sweatshops that is ethically acceptable while others of the same re not. There are few theories or approaches to the studies on the ethical acceptance of the sweatshops. The approaches are:

  • Deontological Ethics: This theory proposes the rational thinking of the people about the ethical decisions. The theory by Immanuel Kant suggests that the people must follow universally applicable and acceptable ethical rules while making decisions and actions for making ethically correct choice (block6.pdf 2017). Similarly, the football manufacturer must follow the rules of the universally ethical acceptance.
  • Justice Theory: The justice theory in terms of the sweatshops implies that the workers should be paid proper wages or the reward according to the labor provided by them. The idea of distributive justice in the justice theory is explicit to the ethical acceptance of the sweatshops. The distributive justice refers to the proper distribution of benefits and resources amongst the employees (block6.pdf 2017). If the implication of the theory is properly done, then the sweatshops are ethically acceptable for the football manufacturing companies.
  • Righteous Moralist: The righteous moralist is the sharp contradiction to the previous approaches. The approach implies that if the home country does not accept the idea, then it is unethical to accept the idea in other culture. However, this is relatively conflicting view as this is only deemed in the acceptability of the home country, otherwise dismissed. Considering the view in relating the same with the football manufacturer, this is noteworthy that the company like Bala Sport is a Fairtrade co operative set up from Scotland, which operates its business in Pakistan. If the home country Scotland accepts the idea then it is also accepted in Pakistan, otherwise not.
  • Moral Universalist: This view is almost similar to the previous view. It proposes that if the working condition violates the universal moral norms, then sweatshop is morally acceptable. Moreover, this is a philosophically oriented view and requires the establishment of the universal moral norms. For the football manufacturer company if the operating country is established with moral norms then the idea is accepted in the country.
  • Naïve Immoralist: The name implies the idea of the view. According to this view, if the sweatshop is an effective way of making things happen and increases the profit then it is acceptable. The problem with the view is that this is unethical and immoral, because the business cannot use the human labor in an indiscriminating way for increasing profit. This conflicting theory for the football manufacturing company is immoral, as the labors are severely affected by the sweatshops.

However, another view implies that if the employee enters into the employment with prior knowledge of the working condition, then sweatshops are not unethical. The view also focuses on the issues that sweatshops provide employment opportunities to the excluded people from labor market and other alternative opportunities as the substitute of the low wages (block7.pdf 2017). 

 

Reference:

block6.pdf. 2017. [online] Available at: https://file:///C:/Users/USER/Downloads/1676403_2081427902_block6.pdf [Accessed 10 Sep. 2017].

block7.pdf. 2017. [online] Available at: https://file:///C:/Users/USER/Downloads/1676404_1148765163_block7.pdf [Accessed 10 Sep. 2017].

McKeown, M., 2017. Sweatshop Labour as Global Structural Exploitation. Exploitation: From Practice to Theory, p.35.

the Guardian. 2017. News, sport and opinion from the Guardian's global edition | The Guardian. [online] Available at: https://www.theguardian.com/international [Accessed 10 Sep. 2017].

www.crowdfunder.co.uk.2017.[online]Available at:https://www.crowdfunder.co.uk/uploads/communityshares/balasports/fair%20trade%20sports%20balls%20ltd%20business%20plan.pdf [Accessed 10 Sep. 2017].

 

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