Analyzing Social Sustainability in Manufacturing: A T&T Case Study

This case study examines the issue of social sustainability in the manufacturing industry, specifically focusing on the ethical dilemma of child labor within the context of outsourcing to third-world countries. The case centers on T&T, a company whose business manager, Steiner, discovers the use of child labor in a Pakistani plant. The assignment explores the arguments for terminating contracts based on company guidelines to stop child labor practices, emphasizing the importance of sustainable development and corporate social responsibility. The study uses the CRAP test to evaluate the credibility of sources. The analysis highlights the negative impact of child labor on education and future societal development, referencing various authors and their studies to support the arguments. It concludes that adhering to company guidelines and ethical practices is crucial for both societal well-being and the firm's long-term success, advocating for a holistic perspective in ethical decision-making.

SOCIAL SUSTAINABILITY
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INTRODUCTION
• MANUFACTURING IS THE PRODUCTION PROCESS OF A FIRM AND HAS
SIGNIFICANT COSTS ASSOCIATED WITH IT.
• COMPANIES AIM AT REDUCING THESE COSTS FOR THE PURPOSE OF
HIGHER PROFITABILITY.
• FOR THIS PURPOSE, COMPANIES HAVE BEEN OUTSOURCING THE
MANUFACTURING PROCESS, TO THIRD WORLD CONTRACTORS.
• THIS IS BECAUSE LABOR AND RAW MATERIALS ARE THE CHEAPEST IN
THE THIRD WORLD COUNTRIES, THEREBY REDUCING PRODUCTION
COSTS FOR THE FIRMS.

THE ISSUE
• SOCIAL SUSTAINABILITY IS THE BIGGEST ISSUE IN THIS CONTEXT.
• FAMILIES IN THE THIRD WORLD COUNTRIES ARE IN DESPERATE NEED FOR FINANCES.
• HENCE, CHILD LABOR IS THE BIGGEST ISSUE WHICH THE COMPANIES CAN BE
ACCUSED OF IN THIS CONTEXT.
• THE DILEMMA IS WHETHER TO LET THESE CHILDREN WORK, OR TO CARE FOR THEIR
FUTURE AND STOP THEM FROM WORKING.
• IT IS A DILEMMA SINCE THE OUTSOURCING PRACTICES OF MANUFACTURING
PROCESSES HAVE YIELDED GREAT EMPLOYMENT OPPORTUNITIES IN THE THIRD
WORLD COUNTRIES.

A CASE STUDY OF T&T
• STEINER, WHO IS A BUSINESS MANAGER IN T&T, VISITED PAKISTAN, TO CHECK ON THE
PLANT WHICH OPERATES MANUFACTURING PROCESSES FOR THE FIRM.
• HE LEARNS THAT THERE HAVE BEEN SIGNIFICANT NUMBER OF CHILDREN, MAINLY GIRLS
UNDER THE AGE OF 14, WHO HAVE BEEN WORKING WILLINGLY IN THE PLANTS.
• THIS IS AGAINST THE GUIDELINES OF THE FIRMS TO ALLOW CHILD LABOR, BUT STEINER
LEARNS FROM THE EXTERNAL CONTRACTORS THAT IT IS FOR THE MUTUAL BENEFITS.
• CHILD LABOR SIGNIFICANTLY REDUCES PRODUCTION COSTS FOR THE COMPANY.
• FAMILIES BENEFIT FROM THEIR CHILDREN WORKING IN THE PLANTS, SINCE IT YIELDS THEM
FINANCIAL SUPPORT.
• THE QUESTION, WHAT SHOULD STEINER POSSIBLY DO FROM A BUSINESS PERSPECTIVE?

THE ARGUMENT: STEINER SHOULD TERMINATE THE
CONTRACTS BASED ON THE COMPANY GUIDELINES,
AND STOP THE PRACTICES OF CHILD LABOR TO
SUSTAIN THE SOCIETY.

THE ARGUMENT: SOCIAL SUSTAINABILITY
• FIRSTLY, IF COMPANIES DO NOT PROMOTE THE ABOLISHMENT OF CHILD
LABOR IN THE THIRD WORLD COUNTRIES, IT WOULD HAMPER THE
SUSTAINABLE GROWTH OF THEIR SOCIETIES.
• CHILDREN WOULD NOT RECEIVE PROPER EDUCATION FOR THEMSELVES,
FOR THE PURPOSE OF ATTAINING SHORT TERM GOALS.
• AS A RESULT, THERE WILL BE NO SCOPE TO NURTURE THEIR
CAPABILITIES.
• SUBSEQUENTLY, THE NEXT GENERATION WILL LOSE ITS VALUABLE
POTENTIAL TO BRING ABOUT DEVELOPMENT IN THE DEVELOPING
SOCIETY.

ARGUMENT: CORPORATE RESPONSIBILITY
• IT IS A FIRM’S DUTY TO ENSURE THAT IT RETURNS VALUES TO THE
SOCIETY FROM WHICH IT EXTRACTS RESOURCES FOR THE PURPOSE OF
ITS BUSINESSES.
• IN THIS CASE, THE FIRM HAS BEEN SUPPORTING THE EXPLOITATION OF
THE SOCIETY, BY LOOKING AWAY FROM THE ISSUE OF CHILD LABOR, AND
PUTTING THE SUSTAINABLE DEVELOPMENT OF THE SOCIETY UNDER
THREAT.
• THEREFORE, THE FIRM MUST TAKE A STANCE AND TERMINATE THE
CONTRACTS UNDER THE COMPANY GUIDELINES.

EVALUATION: ORGANIZATIONAL PRACTICES
AFFECTS BRAND IMAGE AFFECTS
PROFITABILITY.
• ACCORDING TO JØRGENSEN, LAI AND HAUSCHILD (2015), CHILD LABOR MAKES A CHILD
SACRIFICE EDUCATION, WHICH IN TURN, HAMPERS THEIR ABILITY TO SUSTAIN THEIR GROWTH
AND DEVELOPMENT IN THE FUTURE, HAMPERING THE SUSTAINABILITY OF THE SOCIETY IN TURN.
• ACCORDING TO TRAVERSO ET AL. (2018), CHILDREN WHO WORK FROM THEIR CHILDHOOD, HAVE
THE TENDENCY TO IMPART THE SAME MENTALITY INTO THEIR OFFSPRING. THIS MAKES
GENERATIONS UNABLE TO SUSTAIN THEMSELVES IN TERMS OF DEVELOPMENT, BECAUSE OF LACK
OF EDUCATION.
• UTILITARIANISM SUGGESTS THAT ACTIONS SHOULD BE TAKEN WHICH DO THE LEAST HARM TO
THE LEAST NUMBER OF ENTITIES, AND THE MOST GOOD TO THE MOST NUMBER OF ENTITIES,
ACCORDING TO MILL (2016).
• FROM THE DISCUSSION SO FAR, IT CAN BE SAID THAT ABIDING BY THE COMPANY GUIDELINES
WOULD ENSURE SUSTAINABLE DEVELOPMENT OF THE SOCIETY, AND AS WELL AS THE FIRM.
• ACCORDING TO PLACQARDIO (2017), ETHICS SHOULD BE SUCH THAT IT DOES NOT FOCUS ON
BENEFITS FROM A SINGULAR PERSPECTIVE, AND RATHER FROM A HOLISTIC PERSPECTIVE.

EVALUATION TABLE
Author(s) Deduction
Jørgensen, Lai and Hauschild (2015) Child labor makes a child sacrifice education,
which in turn, hampers their ability to sustain
their growth and development in the future,
hampering the sustainability of the society in
turn.
Traverso et al. (2018) Children who work from their childhood, have
the tendency to impart the same mentality
into their offspring. This makes generations
unable to sustain themselves in terms of
development, because of lack of education.
Mill (2016) Actions should be taken which do the least
harm to the least number of entities, and the
most good to the most number of entities.
Placquadio (2017) Ethics should be such that it does not focus
on benefits from a singular perspective, and
rather from a holistic perspective.

CRAP TEST
Source Currency Relevance Authority Purpose
Jørgensen, Lai
and Hauschild
(2015)
2015. Researches on
social
sustainability
Highly qualified
researchers.
Assessing child
labour effects
in social
sustainability.
Traverso et al.
(2018)
2018 Researches on
impact of child
labour on
social
sustainability.
Highly qualified
researchers.
Assessing
social life
cycle.
Mill (2016) 2016 Reviews
utilitarianism.
Highly qualified
researchers.
To draw ethical
decision
making.
Placquadio
(2017)
2017 Reviews ethics. Highly qualified
researchers.
To demonstrate
ethics from a
holistic
perspective.
Conclusion
Current, relevant with the
topic, authoritative, aligns
with purpose
Current, relevant with the
topic, authoritative, aligns
with purpose
Current, relevant with
corporate responsibility,
authoritative, aligns with
purpose.
Current, relevant with
corporate responsibility,
authoritative, aligns with
purpose.

REFERENCES
JØRGENSEN, A., LAI, L. C., & HAUSCHILD, M. Z. (2015). ASSESSING THE VALIDITY OF
IMPACT PATHWAYS FOR CHILD LABOUR AND WELL-BEING IN SOCIAL LIFE CYCLE
ASSESSMENT. THE INTERNATIONAL JOURNAL OF LIFE CYCLE ASSESSMENT, 15(1), 5.
MILL, J. S. (2016). UTILITARIANISM. IN SEVEN MASTERPIECES OF PHILOSOPHY (PP. 337-
383). ROUTLEDGE.
PIACQUADIO, P. G. (2017). A FAIRNESS JUSTIFICATION OF UTILITARIANISM.
ECONOMETRICA, 85(4), 1261-1276.
TRAVERSO, M., BELL, L., SALING, P., & FONTES, J. (2018). TOWARDS SOCIAL LIFE CYCLE
ASSESSMENT: A QUANTITATIVE PRODUCT SOCIAL IMPACT ASSESSMENT. THE
INTERNATIONAL JOURNAL OF LIFE CYCLE ASSESSMENT, 23(3), 597-606.