Disney to probe labor claims in China factories
In this article, it shows that the company was not aware of what is happening in the factories in China. They thought that the company is working in very good conditions and trusting the factories to work according to the rules. What they didn’t know is that the factories were not provide the workers with any safe working conditions, and made them work more for extra hours with minimum wages. However, later the company was aware of the situation and they assigned non-profit social auditing and training firm called “Verite” to assess the conditions. This problem led to non-market environmental situation. For that, it should be analyzed through Baron's frame work.
The four I’s in Disney Article are:
Issues:
Social responsibility problems like
* Unsafe working conditions and extra working hours “employees to work 10- to 13-hour work days”
* “Paid below the legal minimum wage”
Interests:
* National Labor Committee
* Verite (non-profit social auditing and training firm)
Institutions:
* The government is involved in this issue.
Information:
* China’s government should be aware of the problem facing the employees in the working field. Also, they should know the conditions the employee has to face every day in the job.
* The interested groups know about the issue and try to publish them in the media like, newspapers to make people aware of the situation.
