What are the benefits of ensuring that income equality exists in a foreign market? Why should a multinational corporation that is operating a facility or a factory in a poor undeveloped country pay adequate wages rather than paying the least wage possible?
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Detecting unethical practices at supplier factories, including monitoring and compliance, is a major challenge, to say the least. Yet, wages drive costs, and it's an absolute necessity to maintain the lowest cost in the production of any good. Or is it? This week, focus on debate! Start or select a fellow student's side and either support or argue against that position, but be constructive in your approach. Employ teamwork! Discuss how important it is for companies, such as Nike and Walmart, that source extensively from foreign suppliers located in countries where wages are low and substandard working conditions are common to institute supplier codes of conduct and undertake programs to monitor and ensure supplier compliance with these codes of conduct. Would you recommend that a company join the Fair Labor Association and use FLA's standards and program of factory audits instead of trying to set up its own supplier monitoring and compliance effort? What can a company do to detect and combat the efforts of unscrupulous foreign suppliers to deceive inspection/compliance teams?
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