Management in a Global Business Environment: Ethical Clothing Research

This report focuses on the importance of ethical clothing research for Universal Store within the global business environment. It begins by defining the global business environment and emphasizing the need for ethical considerations, particularly in the textile and clothing industry. The report highlights the necessity of research into ethical clothing, social, and environmental impacts to gain a competitive advantage. It then discusses the risks associated with not undertaking such research, including unfavorable trade policies, increased production costs, and potential issues like child labor and worker safety. The report proposes a comprehensive plan for conducting ethical clothing research, including determining issues, analyzing current working systems, adhering to workplace regulations, and assessing environmental impacts, with a final step of selecting the most ethical country for business operations. The report also includes a PESTLE analysis to provide a comprehensive overview of the factors that impact the textile industry, the report concludes that managing the global environment is difficult, and the companies need to follow all rules and regulations to minimize a negative impact on society and environment. Ethical clothing is a very important concept that needs to be considered by organizations.

Management in a
Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain why this additional research is required....................................................................1
Discuss the risk associated with not undertaking this work...................................................1
Present a plan..........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERANCES................................................................................................................................5

INTRODUCTION
Global business environment refers to different cultures, trends, rules, regulations etc. of
different countries in which organization is operating its business (Noe and et.al., 2017). it is
very important for company to manage global environment in order to effective and efficient
functioning of organization. Chosen company for this report is Universal Store. This is an
Australian clothing product store. This company has strong reputation in market and it is
providing high quality products. This report in going to cover needs and requirement of Ethical
clothing research in organization. Various risk factor which company have to face if they do not
use this concept. A proper plan needs to be developed in order to intend these issues.
MAIN BODY
Explain why this additional research is required.
Textile manufacturing and clothing industry is a very vast sector. Companies dealing in
this sector have to consider various factors which helps them in building strong reputation,
offering high quality and fashionable products (Adekola and Sergi, 2016). Universal store needs
to consider Ethical clothing, social and environmental impacts so that this company can gain
competitive advantage over other rival companies. All these factors play a major role in overall
profitability of organisation. A proper research on this topic is necessary in order to understand
how these factors can have positive impact on Universal store. Company needs to consider
negative impact of its business activities and process on environment as well as society. It is
responsibility of organisation to minimize all these negative impact. Ethical clothing practices is
very important as it will leads gain trust from customers as well as build strong employees
relationship. It is very sustainable as it will lead to developing eco-friendly products. This will
help in increasing products demand company and it is safe for society or environment also
(Okoro, 2013). Ethical clothing will be very helpful in solving various issues such as unsafe
chemicals, water shortage, energy consumption and so on.
Discuss the risk associated with not undertaking this work.
Ethical clothing is essential part of manufacturing business and there are many risk
associated with company if they do not properly follow ethical clothing concept (Starik and
Kanashiro, 2013). If Universal company does not follow ethical clothing as well as does not
consider social and environmental on business, then company have to face some major issues.
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Some of the countries which are not following ethical clothing practices have to deal with heavy
losses (Dereli, 2015). This will directly affect productivity and profitability of organisation.
There is various risk which universal store have to deal with if they do not undertake ethical
clothing. Different risk and challenges are mention below.
 Company have to face unfavourable trade policies.
 It is leads to increase in production cost because of increase in cost of material.
 There will be increase in child labour as well as less salary or wages will be provide to
workers. For example Bangladesh is a country which has highest number to child labour
in the world.
 Least importance will be provided to safety and security of workers.
 Increase in air and water pollution can be consider as a major risk.
There are many companies in Bangladesh which are conducting it business practices in
unethical way which is harming environment and society. Worker of Bangladesh which is
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Illustration 1: Unethical clothing
Source: Bangladeshi garment factory owners charged in fatal Tazreen Fashions Ltd. Fire,
2019.

working in clothing sector are suffering from poor working condition. Many of garment worker
has been died in factory tragedy of this country. Universal store is conducting its business
practices in most ethical and right manner as well as full filling its responsibility towards
environment and society. Business operations of this company has been implemented in such a
way which does not leads to have negative impact on environment.
Present a plan
In order to deal with these issues, it is very important to develop a proper plan. This plan
will help clearly determining challenges and issues that is faced by textile industry as well as
what are the major impacts of these factors (Salvatore, 2015). A proper plan is mention below for
conducting research.
Determination of issues: This is the first step of research, in this issue is determined. A
clear determination of issues or problems will be very helpful in solving it (Winn and Pogutz,
2013). This research is developed to identify negative impact on textile industry on society and
environment.
Overview of working systems present: Current working system of textile industry of
these counties includes developing final products in a cost effective manner (Roos, 2013).
Companies dealing in this sector are working with motive of increasing its production and
earning high profits.
Adherence of workplace regulations: In this step, it has been identified that workplaces
of these counties are properly following all rules and regulation or not (Heisig and et.al., 2016).
For this feedback of employees can be taken which helps in providing proper information and
insight about workplace.
Environmental impact of manufacturers: Fashion or textile industry is one of the most
polluted industry (Kuei and Lu, 2013). Manufacturing of cloths can have negative impact on
environment and society by use of harmful and chemical materials.
Most ethical in nature: This is the last step of research which will help in most
appropriate and ethical country is selected (Doh, McGuire and Ozaki, 2015). As per research
most suitable country for developing business is India. This country has strict rules and
regulation which helps in protecting environment.
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In the countries like India, china, Vietnam and china have there different rules and regulation
regarding the development of education of children and avoid having more of child labour in
country.
India
The law regarding the protection of child labour is Child and Adolescent Labour (Prohibition and
Regulation) Act, 1986 to regulate the child labour practices in India. A complete prohibition is
made regarding the employment of children below the age of 18. Majorly the child labour is
India has been identified in fireworks industry as it was reported to have the manufacturing of
incense sticks and matchsticks. Along with these children and exposed to gun powders for
cracker. There were no safety measure taken for such an explosion of sulphur, gunpowder and
aluminium powder their skins have scalded. Due to fireworks there are the cocktails of chemicals
in atmosphere which have extensive air pollution in a short amount of time, leaving metal
particles, dangerous toxins, harmful chemicals and smoke in the air for hours and days. Some
toxins never fully decompose or disintegrate, but rather hang around in the environment.
China
The china has the child labour law of protection of minor labour law 1991 in which it was stated
that the minimum age of employment of children 16 years the workers under the age of 16-18
will be classified as underage workers. Mainly in china the child labours in brick manufacturing
industry as there is nor regulation by government on such one. The combustion of coal leads to
serious environmental pollution and health problems. Impact of brick industries on air
pollution, vegetation and human health.
Bangladesh
Bangladesh is having “The Employment Of Children Act 1938”. The Act also provides that no
child below 12 years shall be employed or permitted to work. According to the Act, no child who
has completed 15 years but not 17 years shall be employed or permitted to work in the aforesaid
occupations unless the periods of work as most of the child labour is working in the garment
industry. The shift toward mass manufacturing of cheap clothing which results in pollution,
more waste and more negative environmental impacts. Dyes are take in in use toxic chemicals
pollute waterways. Gathering the materials for wood-based fabrics like rayon, modal and viscose
contributes to deforestation.
Vietnam
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The Vietnam has the law which authorizes “light work” for children between 13 and 15 years
old, which includes tasks such as “mat weaving, making incense, weaving net, making home
appliances and fine art crafts from wicker, rattan and bamboo, rearing silk worms, packing
candy”. Fertilizers and pesticides used in mulberry plantations have effect on silkworm due to
its residual toxicity, which affects the quality and quantity of cocoon production and causes
negative impacts on the environment.
Pestle analysis
Political factor- the implementation of various law and policies issued buy the government
which results in up down of the industry. The taxation policy and the changing rules will affect
the growth of company.
Economic factor- the rate of inflation and other higher interact rate the effete the company .
There are many more understanding of the credit crises and many more tat the textile industry
will face.
Social factor.-The culture difference and the attitude of people towards the career affect the
industry. The cost of the labour also depends on the society and that affects the cost and sale of
the company. Many social causes such as rules against child labour has also affected the garment
industry. In addition to that fashion trend changing so quickly has led garment industry to take
into acknowledgement and change their product accordingly.
Technological factor- the advancement of technology has sped up the process as well as the
increase in cost. There should be availability of the resources and their optimal use.
Legal factor- there major issues faced by the company of textile is regarding the issues of the
child labour and many other legal activities such as the law helped by government and other
credentials.
Environmental factor- major issue in textile industry is regarding the recycling of product high
can help in keeping the environment cleans. There are many more issues that is faced is about
global warming and clearance of the natural resources which are use in textile industry.
As from the above it can be concluded that being a leading factor, the textile industry
needs a critical business analysis for the judgement of flaws and opportunities for the further
impersonate. Universal store is conducting its business practices in most ethical and right manner
as well as full filling its responsibility towards environment and society. Business operations of
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this company has been implemented in such a way which does not leads to have negative impact
on environment.
CONCLUSION
From this report it can be concluded that managing environment is global business is very
difficult. Companies dealing in clothing manufacturing industry needs to follow all rules and
regulation in order to minimize negative impact on society and environment. ethical clothing is
very important concept that needs to be considered by organization.
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REFERANCES
Books and Journal
Adekola, A., & Sergi, B. S. (2016). Global business management: A cross-cultural perspective.
Routledge.
Dereli, D. D. (2015). Innovation management in global competition and competitive
advantage. Procedia-Social and behavioral sciences. 195. 1365-1370.
Doh, J., McGuire, S., & Ozaki, T. (2015). The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special
issue. Journal of World Business. 50(2). 256-261.
Heisig, P. & et.al (2016). Knowledge management and business performance: global experts’
views on future research needs. Journal of Knowledge Management. 20(6). 1169-1198.
Kuei, C. H., & Lu, M. H. (2013). Integrating quality management principles into sustainability
management. Total Quality Management & Business Excellence. 24(1-2). 62-78.
Noe, R. A. & et.al (2017). Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Okoro, E. (2013). International organizations and operations: An analysis of cross-cultural
communication effectiveness and management orientation. Journal of Business &
Management (COES&RJ-JBM). Volume1. (1).
Roos, G. (2013). The role of intellectual capital in business model innovation: an empirical
study. In Intellectual Capital Strategy Management for Knowledge-Based
Organizations(pp. 76-121). IGI Global.
Salvatore, D. (2015). Managerial economics in a global economy. OUP Catalogue.
Starik, M., & Kanashiro, P. (2013). Toward a theory of sustainability management: Uncovering
and integrating the nearly obvious. Organization & Environment. 26(1). 7-30.
Winn, M. I., & Pogutz, S. (2013). Business, ecosystems, and biodiversity: New horizons for
management research. Organization & Environment. 26(2). 203-229.
Online
Bangladeshi garment factory owners charged in fatal Tazreen Fashions Ltd. Fire. 2019. [Online].
Available
through:<https://www.thestar.com/news/world/2013/12/22/bangladeshi_garment_factor
y_owners_charged_in_fatal_tazreen_fashions_ltd_fire.html>.
Child Labour in China's Informalized Urban Industrial Sector [Online]. Available
<https://www.amrc.org.hk/content/child-labour-chinas-informalized-urban-industrial-
sector>
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