HO CHI MINH CITY UNIVERSITY OF
FOREIGN LANGUAGES – INFORMATION TECHNOLOGY
DEPARTMENT OF FOREIGN LANGUAGES
SUPPLY CHAIN MANAGEMENT
UNIT 9
Instructor’s name: Phạm Thúy Quỳnh
Class: 232152709301 (Friday 4-6)
Group 6’s members:
1. Cao Thị Tố Nhi 21DH718443
2. Cao Nguyễn Hồng Nhung 21DH713410
3. Lê Quỳnh Như 21DH717591
4. Phan Huỳnh Tú Như 21DH718502
5. Nguyễn Hiền Xuân Mai 21DH718246
March 8, 2024
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Contents
1. Benefits For Suppliers In Developing Countries That Invest Time And
Resources In Improving Conditions For Their Workers.....................................1
2. Improve Conditions For Workers...................................................................2
2.1. Reasons To Improve Working Conditions For Workers...............................2
2.1.1. Improving Productivity And Efficiency......................................................2
2.1.2. Building And Developing A Strong Staff Team...........................................2
2.1.3. Promoting Collaboration..............................................................................3
2.1.4. Supporting Better Well-Being......................................................................3
2.2. Strengths To Focus On When Improving Working Conditions.......................3
2.2.1. Labour Safety.................................................................................................................3
2.2.2. Reward Productive Employees................................................................................3
2.2.3. Providing A Comfortable Working Environment......................................4
2.2.4. Allowing Remote Work.................................................................................4
3. A Company That Has Had A Lot Of Negative Publicity Because Of
Unethical Working Practices In A Supplier’s Workplace....................................4
3.1 Nike’s Dark Past.................................................................................................................4
3.2 The Company’s Actions..................................................................................................7
3.3 What Other Company Can Learn From Nike.......................................................7
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1. Benefits For Suppliers In Developing Countries That Invest
Time And Resources In Improving Conditions For Their
Workers.
Suppliers in developing countries who invest in improving working conditions can
reap multiple benefits, both internally and externally:
Internal benefits:
Increased productivity and efficiency: Happy and healthy employees are
more likely to be productive and efficient, and less prone to absenteeism,
resulting in cost savings for suppliers.
Reduced turnover: Improved working conditions can reduce employee
turnover, thereby reducing costs associated with recruiting and training.
Reduce the risk of labor disputes: By proactively addressing employee
concerns and creating a positive work environment, suppliers can minimize
the risk of strikes and other work stoppages.
External benefits:
Improved brand reputation: Consumers are increasingly paying attention to
ethical manufacturing practices. By demonstrating a commitment to ethical
sourcing and worker well-being, suppliers can enhance their brand
reputation and attract more customers, especially those who value
responsible companies.
Build stronger relationships with buyers: Buyers are more likely to work
with suppliers who share values around ethical sourcing and labor treatment.
This can lead to longer-term contracts, a better negotiating position and
better market access.
Attracting and retaining skilled workers: In a competitive market, good
working conditions for skilled workers can be an important factor when
choosing an employer. This may be particularly important for developing
countries competing for skilled workers.
It’s important to remember that investing in employee well-being can be a long-
term investment, and it may take some time for the benefits to be fully realized.
However, the potential benefits of improved working conditions are substantial and
can contribute to a supplier's overall success and long-term sustainability.
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2. Improve Conditions For Workers.
2.1. Reasons To Improve Working Conditions For Workers
2.1.1. Improving Productivity And Efficiency
- When workers work in a positive, comfortable and well-supported environment,
they will have high morale, and motivation and focus more on their tasks, leading
to productivity and work efficiency improved.
- According to research by market research firm Gallup, employees working in
positive environments have 41% less absenteeism, 10% higher customer
satisfaction, and 21% higher profitability.
2.1.2. Building And Developing A Strong Staff Team
- Economic integration opens up many opportunities for domestic enterprises but
also makes the business competition more fierce. Enterprises compete not only in
terms of market share, customers, and supply of goods but also in terms of human
resources.
- To maintain a competitive edge, businesses are all concerned with finding
talented employees and retaining them. The working hours at Samsung are
typically up to 12 hours a day, along with high work pressure. Samsung employees
who work overtime will be paid accordingly, however, this can also affect the
workers' ability to regenerate their labour force in the long run.
- When there is an ideal working environment, Samsung will become a target that
candidates will pay attention to. And instead of struggling with the talent
competition, candidates will compete with each other to work at Samsung.
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2.1.3. Promoting Collaboration
- Teamwork is often the foundation of company success. When employees feel
motivated and supported on an individual level, they may naturally begin to
support and encourage others in the workplace.
- Just as a good mood tends to spread, interaction and cooperation can create strong
professional bonds between co-workers and lead to improved relationships all
around. The better team can collaborate, innovate and share ideas, the better
chance Samsung has of achieving its goals.
2.1.4. Supporting Better Well-Being
It’s no secret that many employees today suffer from stress and burnout. Creating
an environment where the employees feel comfortable opening up, being honest
and asking for help can make it easier for them to manage stress and anxiety, avoid
symptoms of burnout and minimize absenteeism that leads to lost productivity.
Most importantly, a positive work environment supports employees’ physical and
emotional well-being by empowering them to maintain a work-life balance.
2.2. Strengths To Focus On When Improving Working Conditions
2.2.1. Labour Safety
- Ensure a safe working environment for workers by providing adequate protective
equipment, safety training and implementing accident prevention measures.
- Assess and eliminate risk factors to prevent safety and health risks.
2.2.2. Reward Productive Employees
- Offering incentives to high-performing employees or teams can reinforce positive
behaviours and recognize their contributions to Samsung. This motivates top
workers to continue performing at a high level while demonstrating behavioural
expectations to the rest of the workforce.
- However, doing this correctly is crucial because too many rewards are handed out
to the same people or an unclear method of reward distribution can create
resentment.
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2.2.3. Providing A Comfortable Working Environment
A comfortable worker is a productive worker, so make sure there is adequate
lighting, heating and flooring. Standing workers especially are at risk of lower limb
stress if they have to stand on hard floors all day. Rubber floor mats, also called
anti-fatigue mats help to reduce stress and strain, especially lower limbs.
2.2.4. Allowing Remote Work.
- Developing a telecommuting policy that allows Samsung’s workers to work from
home occasionally or full-time can improve their work-life balance and contribute
to a positive work environment.
- In 2022, the Pew Research Center surveyed over 5,800 employees in the U.S. to
assess how the COVID-19 pandemic affected work arrangements. Among
respondents who now work a few days remotely out of the week, 64% say their
work-life balance has improved.
3. A Company That Has Had A Lot Of Negative Publicity Because
Of Unethical Working Practices In A Supplier’s Workplace.
3.1 Nike’s Dark Past
Nike's use of sweatshop dates back to the 1970s but wasn't brought to public
attention until 1991 when American labour activist Jeffrey Ballinger published a
report on Nike’s factory practices in Indonesia, exposing a scandal: below-
minimum wages, child labour and appalling conditions likened to a sweatshop – a
factory or workshop where employees work long hours for low money in
conditions that are hazardous to health. The report described the meagre wages that
the factory workers received, only 14 cents per hour, barely enough to cover basic
living costs. The disclosure aroused public anger, resulting in mass protests at the
Barcelona Olympics in 1992.
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After the protests in 1992, the company took more concrete action by setting up a
department to improve factory conditions. However, this didn't do much to resolve
the problem. Disputes continued. Many Nike sweatshops still operated.
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These issues came to light through investigative reports, public campaigns, and
even an iconic 1996 Life magazine photo depicting a young boy named Tarig from
Pakistan stitching a Nike soccer ball, who was reportedly sewing Nike footballs for
60 cents a day.
On 13th May 1998 , Philip H. Knight, Nike's chairman and chief executive, also
agreed to a demand that the company has long resisted, pledging to allow outsiders
from labor and human rights groups to join the independent auditors who inspect
the factories in Asia, interviewing workers and assessing working conditions. (Jr.,
1998)
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3.2 The Company’s Actions
In response to concerns, Nike announced an increase in the minimum hiring age
for its factories. In countries where 14-year-olds can legally work, Nike will now
only hire workers who are 18 for shoe factories and 16 for other factories.
However, existing employees under these age limits will not be affected by the
change.
In 1999 - Nike joined the Fair Labor Association, a not-for-profit group by White
House, that combines company and human rights representatives to establish a
code of conduct and monitor labour conditions.
In 2005, Nike produced a full list of its factories. In the same year it published a
report acknowledging it still had to improve its Southeast Asian factories. This was
a contrast from just eight years previously when activists accused them of abuse of
workers there. From 2005 till the present day, it has been producing corporate
social responsibility reports, as part of its commitment to continued transparency.
3.3 What Other Company Can Learn From Nike
Lessons for other firms: From there, other companies should consider profiting
from adopting proactive efforts to preserve ethical labor standards across their
supply chains, instead than waiting for pressure from public opinion. Businesses
should offer safe working conditions and respect workers' rights. The Nike case
serves as a cautionary tale, emphasizing the need of ethical supply chain
management and the risk of brand damage caused by unethical actions. It's a
continuing process, and Nike, like other organizations, is still dealing with these
challenging challenges.
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References
https://www.unleashedsoftware.com/blog/benefits-of-supply-chain-management
https://www.kdci.co/outsourcing-blog/post/outsourcing-to-developing-countries
https://jobsgo.vn/blog/moi-truong-lam-viec-o-samsung/
https://hrchannels.com/uptalent/tam-quan-trong-cua-moi-truong-lam-viec.html
https://exudehc.com/blog/positive-work-environment-benefits/
https://semiconductor.samsung.com/sustainability/labor-human-rights/safety-first/
creating-a-culture-of-safety-with-solid-health-safety-management-system/
https://www.researchgate.net/publication/252708249_Story
Branding_by_Empire_Entrepreneurs_Nike_Child_Labour_and_Pakistan's_Soccer_Ball_Indu
stry
https://www.studysmarter.co.uk/explanations/business-studies/business-case-studies/nike-
sweatshop-scandal/
https://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-
5#ixzz32ZChAxXp
