Social Sustainability Regulation and Practice: A Business Presentation

This presentation examines the critical aspects of social sustainability regulation and practice, particularly focusing on the challenges faced by companies that outsource manufacturing to developing countries. Drawing insights from the case study 'Third-world families at work: Child labor or child care?', the presentation addresses key issues such as child labor, gender inequality, and the exploitation of workers. It explores the current state of play, highlighting how multinational companies must align their values with local practices and adhere to ethical standards to avoid legal and reputational risks. The presentation emphasizes the importance of due diligence, understanding local regulations, and engaging with governments and communities to ensure long-term economic sustainability. It also touches upon the role of international regulations and advocacy groups in promoting responsible sourcing and corporate social responsibility. The ultimate aim is to provide a comprehensive overview of social sustainability, emphasizing the need for companies to prioritize the well-being of their workforce and the communities in which they operate.

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SOCIAL SUSTAINABILITY REGULATION AND PRACTICE
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Introduction
Social sustainability is a framework that is employed in organizations to promote the
wellbeing of their members’ while ensuring there is a maintenance of a healthy community (Gal,
Akisik, & Wooldridge, 2018). Many countries concentrate less on social sustainability as
compared to economic and environmental sustainability. However, an organization that aims to
achieve social sustainability has an advantage of unlocking new markets, innovating new service
lines or products, and retaining and attracting new business partners. It also improves the
employee engagement and internal morale, productivity (Saeidi et al., 2015) as well as
enhancing the company-community conflict resolutions. From the case study, ‘Third-world
families at work: Child labor or child care?’, various aspects of the social dimension of corporate
sustainability can be enumerated. They include; gender equality and women’s empowerment,
child labor, indigenous people, people with disabilities, and approach to poverty.
The current state of play of issues raised from the case study regarding to social
responsibility regulation and practice
Understanding social responsibility is key to the success of a multinational company in
developing countries (Kolk, 016). From the case study, Jonathan Stein- was surprised when he
found that their company values and social responsibility guidelines did not tally with those
employed in Pakistan. In their Lahore plant, the majority of the workers were women and small
children below the age of 14 years. According to their company, Timothy & Thomas, they
prohibit the use of child labor and encourages employee empowerment and diversity (Nichols,
1993). In most of the developing countries, the cost of the raw materials is usually low.
However, numerous social sustainability issues are encountered primarily regarding
infrastructure and legislation encompassing farming, cultivation, processing of the raw material

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as well as in the manufacturing of the final products. Child labor, poor nutrition, and exploitation
of the workers are common, and hence need to ensure that all the practices carried by the
company are by their ethical standards. If the multi-national company engages in such practices,
and their customers discover that they have been involved, either indirectly or directly, there will
be negative repercussions. Therefore, it is crucial for the company to outsource the material
sustainably. In many of the developing countries, child labor is a crime (David, Katz, & Kearney,
2006). Nevertheless, many organizations still employ them illegally at a small amount of cash.
Therefore, if not careful the international company may find itself in legal problems with the law
for employing small children.
The issue of gender equality and women’s empowerment also arises from the case study.
In Pakistan, women are not respected, and they are left to do house chores and work that is lowly
regarded. The job opportunities also differ between men and women as well as the number of
people taken to schools in both genders. In Pakistan, for instance, in 100 men in the labor force,
only seven women are employed. In 10 men who can read, only four women can do so. Also,
many boys are enrolled in primary school (about half) while only a third of the girls. This
scenario is a representative of many developing countries. However, it is essential to understand
that sustainable development is not attained until all the rights and needs of every individual are
catered. Therefore, since many developing countries have discriminatory laws against women
and children, it’s time these laws are abolished to ensure gender equality and women
empowerment (Kabeer, 2005). Moreover, when the developing countries discriminate against
their women by causing them to work for long hours, under deplorable conditions, and poor pay,
it will automatically translate to the poor economic development of the country. As they enrich
the outsourcing company of the developed country, themselves will be left deprived.

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Most of the third-world countries are being taken advantage of by the multi-national
countries since their approach to indigenous people, and those living with disabilities is inclined.
Many of the manufacturing companies where organizations from the developed countries
outsource raw materials, do not have appropriate regulations protecting their workers.
Organizations that have employed workers from marginalized and vulnerable groups such as the
indigenous communities, slum and rural dwellers, migrants, and those with disabilities, generally
face a lot of discrimination (Marumoagae, 2012). Therefore, investing in reforming these
discriminatory laws, policies, and practices will lead to poverty reduction and overall economic
growth. Nevertheless, various associations in the developed countries such as the United States
of America (USA), have implemented regulations that ensure their outsourcing companies do not
engage in improper practices contrary to the stand (Köksal, Strähle, & Müller, 2018). For
instance, in the US, the National Council of Churches, Catholic Bishops as well as National
Farm Worker Ministry (NFWM), threatens to carry out adverse publicity and also boycott any
corporation that will use inappropriate sourcing policies in any of the developing countries.
Conclusion
Social sustainability regulation and practice in the developing countries is critical to
ensuring economic sustainability in the long-run. Similarly, the companies that outsource raw
materials from the developing countries need to perform due diligence and understand the
policies regulating the manufacturing industry. For instance, the culture of one community or
nation differs from another. Therefore, getting to know the culture of the people working in the
organization and its environs through involvement in corporate community policies will help the
manager to grasp the complex social, cultural, and political issues relevant to the overseas

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suppliers. Also, there is a need to interact with the local, federal, and national governments, and
understand their legal policies and regulation surrounding the manufacturing industries.

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References
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