Labor Protection in China
China has been continually contributing significantly to the world’s economy. However, interest in Chinese firms has grown in the past few decades as they act as suppliers in the global production chains. The success of Chia has been attributed to their production approaches where they use manufacturing processes that have lower costs yet contribute to high FDI flows. China is also known for using relatively cheap labor forces which has also contributed to a reduction in the production costs. The use of low-cost labor has contributed to labor implications and relations in Chinese firms. There have been increasing arguments against the Chinese firms and their managements as their labor approaches are perceived to be exploitative, especially with regard to the attraction of skilled labor. There are challenges in the firms regarding the acquisition of skilled labor, the safety of the workers, labor retaining, and investment in the skills of the worker. The main drive for these Chinese firms is the need to improve their supply position in the global chain values, and the labor issue is also driven by domestic factors such as a huge labor supply. Corporate Social Responsibility (CSR) is not a new issue in China, and a range of measures like those adopted by different multinational companies can be taken into consideration to foster proper labor conditions.
Potential CSR Mechanisms for Labor Protection in China
China is one of the nations which has been having recurrent labor related complaints. In the recent years, several serious incidents and deaths have been reported from the central Chinese government. There are many people who work in dangerous sites in China, such as the coal mine and it is in such sites that people have been injured and even died in the process. The Chinese government and the individual companies are to blame for such adverse impacts on their laborers because it is their social responsibility to ensure that their employees are safe. The company an the government itself, have, however, failed to be responsible because of the emphasis on profit maximization while neglecting the corporate social responsibility practices. In 2008, many milk formula companies were involved in milk scandals because the milk formula made the infants sick, and some even died. The milk produced was contaminated by some chemicals which caused children to develop kidney stones and other complications. This is one of the many cases that have projected Chinese local and international companies to be socially irresponsible. Further, other labor issues associated with Chinese companies include poor labor pay, dangerous working environments, quality scandals due to unskilled labor, among other issues.
Production Principles of Multi-National Companies and Industries
Multinational companies and industries are the major actors in the global market as they contribute significantly to driving the success of the global economy. Multinational corporations have been in existence for many years since the start of the overseas trade. Traditional business approaches were adopted by multi-national companies in the beginning; however, the companies have adopted a range of principles that have propelled their success. Multinational-companies entered into modernity between the 17th and the 18th century as this was an edge of creation and the main concerns of large companies such as the British East India company. At that point, such organizations were perceived to be the agents of civilization, and they contributed mainly to the commercial and industrial development of different continents like Asia, South America, and Africa. Towards the 19th century end, there were major signs of progress made in communication which linked the world markets and enabled the multinational companies to improve their global relations and commercial ties. Even though multinational corporations promoted positive relations amongst nations, the relationships were not strong enough to prevent the occurrence of world wars, although, a world economy that was closely bound emerged after the wars as the conflict aftermath during the first half of the 20th century.
In the current century, multinational companies and industries gave emerged in terms of power and visibility, although they are now ambivalently seen by consumers and governments globally. They are looked at with suspicion owing to some of their production procedures. The common perception about multi-national companies is that they have no concerns about the economic growth of some regions and that they are aimed at attaining greater power than that of the national agencies, the international trade federations, as well as national, local, and the international labor organizations (ILOs). Further, the actual methods used and the nature of operations of multinational companies are often misunderstood by the public, and this has a lasting impact on the operations of the companies. Even though multinational companies face challenges due to such perceptions and criticisms related to these, they still position themselves to the extent of their influences and powers as a means of doing away with the international trade barriers. The companies have similar traits including the means of penetrating through markets, the operations of their headquarters as well as subsidiaries in the different nations, and their relationships with the national governments and agencies as well as the labor organizations.
As suggested by the name, multi-national corporations are businesses that have operations in different nations. The operations of the company out of the home company may be connected by mergers or may simply operate as subsidiaries, and in some instances, operate as companies with substantial autonomy. Owing to the large size of the multinational companies, they are also considered to be utilitarian entities as they tend to have minimal concern for the economic progress of the nations in which they operate.* Currently, there are more than forty thousand multinational companies and more than a quarter-million affiliate businesses from overseas running their programs across the continent. By 1995 the sales of the leading 200 multinational companies when compiled was $7.1 trillion, which is 28.3% of the global GDP. Most of the multinational companies have their headquarters in the US, western Europe, China, and Japan, and they shape the economy of the globe through their productions, trading, and financial transactions. They, however, they tend to favor their home economies more than they consider the economies of the other nations, however, the tendency is slowly decreasing owing to bodies such as the ILO, the international laws, and the soft law UN Guiding Principles among others. Organizations like WTO, IMF, and the World Bank, have also considerably shaped the operations of multinational companies due to the basic rules that they have established regarding the economy, and trade relations.
Owing to the increased criticisms that multinational companies and industries face, the companies have adopted sustainable and lean production principles. The manufactures have become more concerned about the people they work with, the plant, as well as the profits that they generate as companies. Sustainable production principles are associated with propelling the company towards sustainable production approaches with regard to the use of resources such as energy and labor among others, products created, as well as waste management and in the long-term making the companies rather responsive. Different scholar highlight suitability from an operational perspective, although there are many dimensions of the principles, involve the main sustainable production elements such as the use of energy and raw materials, the environment, aspects of social justice and the development of the community, community economic performance as well as labor and production factors. There are many complexities associated with sustainability as such, companies are forced to utilize all resources and their management efforts to ensure sustainable production and operational principles are maintained.
Multi-national companies such as Toyota have adopted production principles that are lean such as basing their management decisions of philosophies that are long-term even when there is a risk of financial loss in the short-term. In prior years, most companies were concerned with maximizing their short-term profits at the expense of their long-term returns and business operations, which contributed to the failure of many companies. Due to such trends, multinational companies have established management decisions that supersede the short-term needs of the business. The common approach of multinational companies in the present time is to establish a purpose that is common, and bigger than just making profits. Many multi-national companies have established their place historically as a mean of bringing the organization to the next level. The philosophical principles and other missions of the individual companies have been pivotal in crafting the decisions which trigger the responsibility of companies. Pull principle to mitigate overproduction is also adopted and encouraged by multinational companies. This means issuing the consumers with their demands based on their demand times and amounts. In doing so, the replenishment of material is emphasized owing to the basic consumption principle.
The other production principle of multinational companies is the establishment of workflow processes that are continuous and bring challenges to the surface. Most of the companies are redesigning their work processes such that they attain workflow that is continuous and one that has high values. One of the typical approaches is cutting idle time of projects to zero. The movement of material and information is fostered as well as a connection of the processes so that in case there are challenges in the system; they are exposed at an early stage. Multinational companies also strive to be responsive for their daily customer demand changes instead of completely depending on the systems and schedules generated by computers, especially with wastage inventory tracking. The other production principle common in multinational companies is the principle of leveling out the workload. There is an increasing need for companies to level out the manufacturing workloads as well as the service processes as a means of starting or stopping the work projects that occur in different batches for most multinational companies. Through such principles, the overburden placed on the people and equipment are done away with, because production unevenness is removed.
Continuous employee improvement is the other production principle adopted by multinational companies. Employees are major resources in the production processes of companies, and owing to the increasing concerns globally about labor; multinational companies have established labor principles that ensure employee retaining and empowerment. The multinational companies use a range of approaches to empower their employees, for instance, through better payment, skill trainings, as well as scholarships, among others. The main aim of these companies in doing so is to attain accumulated learning about the processes to the extent that best practices are upheld. The methods also give the employees room to be innovative and improve the standard of the company so that if one employee leaves, their responsibilities can be handled by the persons next in line. Another production principle involves the use of technology that is reliable and one that has been well tested to serve the needs of the people and ensure smooth processes. There is an increasing awareness on the use of technology, such that it does not replace people but rather aid in the work processes. Before new technologies are adopted, actual tests are conducted on them with reference to the processes of the business. Where the technologies fail to meet the needs and concerns of the organization, they can be modified or rejected as they may interfere with the stability.
International Law Universal Declaration of Human Rights ILO Declaration on Fundamental Principles and Rights at Work
The Universal Declaration of Human Rights (UDHR) is one of the human rights law that was universally agreed on to be the foundation of rights of people and can be emphasized in China to ensure proper working conditions of laborers. The law was officially adopted in 1948, and it has continued to inspire a rich body of human right treaties that are made internationally.* It acts as an inspiration for dealing with injustices, especially when there are conflicts and societies are suffering repression like China. To ensure that people continue to enjoy their rights as people, UDHR was established and enforced. It thus acts as recognition of the primary rights and freedoms that are inherent to all people. The rights are equally acceptable to all persons, and UDHR ensures that all people are born free and are subject to treatment with dignity and access their rights. The core values of UDHR include; interdependence, non-discrimination, indivisibility, and equality, and also ensures that all people have rights and obligations with regard to the provisions of the law.
The emphasis of the international human rights law in Chinese companies will ensure that the human rights are preserved through the obligations laid down. Individuals and states are bound by the obligations states in the law, and they are expected to obey, protect, and fulfil the rights of people. Respect is also expected, in that the different nations will be expected to avoid interfering with the rights of different people. They are also expected to take actions that are positive to ensure that people enjoy their rights. Governments can only put in place measures in the country and legislations that are compatible with the treaties made through the international human rights treaties ratification. Through the domestic judicial and legal systems, human rights protection is guaranteed. In the instances where the legal proceedings of individual nations do not act on the abuses of human rights, there are different approaches that people or groups can use which are available at both local and international level to ensure that human rights are implemented and protected.
ILO similarly provided fundamental principles and rights at work when it was adopted in 1998 and can also be emphasized in China. The declaration ensures that the member states respect and also promote the rights in the categories of; freedom of association, collective bargaining, forced labor elimination, child labor, and discrimination in relation to employment. ILO clarified that these rights were universal and were applicable to all the nations despite their difference, especially in economic development. Special attention is given to groups such as persons with special needs, the unemployed persons and migrant workers. ILO recognition is that equity, as well as social progress in poverty eradication, cannot be assured only through economic growth. To ensure that nations, employers, and workers attain the realization of the declaration, ILO ensures that annual reports are submitted and reviewed by nations that have not ratified some of the conventions which relate the rights and principles provided. It also ensures that there are global reports which issue information on the present situation, and by ensuring there is cooperation of projects.
Soft Law
Soft law can also be applied in Chinese companies to foster their CSR practices. Soft laws are practices that are not legally binding, and their significance legally is minimal. For the international law, they are policy provisions that establish the conduct of people or organizations, although they cannot be legally enforced. Through the adoption of the soft law, China can prove within the international spectrum and the instruments of human rights that they are committed to meet the human rights of their laborers on moral and political levels. It is an appropriate method for accounting for the human rights through means that are unbinding.
OECD Declaration on International Investment and Multinational Enterprises
The OECD Declaration on International Investment and Multinational Enterprises issue norms that are not legally binding concerning the conduct of governments and businesses with international operations. It primarily invests on transparency, the protection of investments, and non-discrimination. Through such provisions, transparency with regard to labor practices can be enforced in Chinese companies as there will be a balanced approach to labor practices by the individual companies and the government. It also recommends voluntary ethics relating to labor and environmental practices as well as means of mitigating corruption.
SA8000
SA8000 can be applied as a social audit for Chinese firms which have labor issues. The SA8000 is a rather voluntary audit and spelled out the social compliance of companies. By filing such provisions based on the UDHR provisions as well as the national labor laws, and the norms of the international human rights, the companies will be propagating the labor rights of their workers. The provisions of SA8000 include compliance with child labor practices, forced labor violations including withholding of documents of workers which would make it challenging for them to leave the company, health and safety standards, collective bargaining as well as the freedom of association, discrimination, and discipline practices among others. Such an audit will ensure that proper labor performance is enhanced.
UN Guiding Principles and UN Global Compact
The guiding principles of the UN regard the human rights and business principles. They stipulate the duty of organizations have to protect the rights of people, the CSR with respect to the rights of people, and access to remedies. There are ten UN global compact principles which regard CSR of companies and their approaches to their business conducts. Where the principles are incorporated in the operations of Chinese companies, it would ensure that they meet the fundamental principles in relation to the rights of people, labor rights, the well-being of the environment, and the fight against corruption. Human rights principles expect that the rights that have been proclaimed internationally for people are observed. Principles three, four, and five of the UN guiding principles regard labor; forced labor, child labor, and labor discrimination elimination. Principles seven to nine provide for environmental accountability, and ten for ant-corruption.
Zero Draft Treaty
The Zero Draft treaty implies the rights that people have and possible violations by any businesses and how to deal with such violations. Article two of the Zero Draft treaty spells out the need to strengthen, protect, and fulfil human rights. It also provides for the access to justice and solutions to the rights’ victims. Victims are the persons that may have been harmed; mentally or physically. Article eight gives the victims the certainty that they will access justice based on the provisions of the international law. If the Zero Draft Treaty is used in China, the victims of inappropriate labor practices can obtain justice, and the perpetrators of labor violations can be apprehended.
Conclusion
Corporate Social Responsibility (CSR) is not a new issue in China, and a range of measures like those adopted by different multinational companies can be taken into consideration to foster proper labor conditions. Typical labor issues in China include poor pay, poor work conditions and working hours, among others. Practices adopted by multinational companies can be embraced in China to foster proper labor conditions and work output at the same time. There is also a need for organizations like ILO, WTO, among others to coordinate to foster appropriate labor practices. Principles such as the Universal Declaration of Human Rights, the soft law, and SA8000 among others can also be used to foster CSR of Chinese companies.