By Maxine Shapiro, KERA 90.1 business commentator
Dallas, TX – Imagine if we, as individuals, had to go around revealing both our good and bad sides. Many would cringe at the thought of being that vulnerable. And yet, isn't that when we create the most compassion, when we can express our shortcomings? I'm Maxine Shapiro with KERA Marketplace Midday.
Well, believe it or not, Nike, Liz Claiborne, Phillips-Van Heusen, Reebok and three other footwear and apparel manufacturers are now making their global labor practices more transparent.
And although Michael Moore made a total ass of himself at the Oscars, he very well may be responsible for initiating a public outcry and causing this turnaround. It was the 1998 documentary, "The Big One," in which Moore confronted Nike about the company's overseas exploitation. CEO Phil Knight, scrambling for an answer, defended the substandard labor practices, citing the bottom line as the main motive. We all know that's the inspiration for most businesses, but when you hear it in such a straightforward way, it's like nails on a chalkboard. But about a year before the release, the Indonesian government raised its minimum monthly wage from 50 to 66 U.S. dollars. They also added a little loophole: foreign companies doing business in Indonesia could apply for a waiver to forgo the raise. Nike chose not to apply for the waiver, and contractors begin began paying the higher wage. A company spokesman said, "There are some actions that we have taken that have improved us as a company that are a result of the criticism."
And today Socialfunds.com reported the Fair Labor Association had finalized their first full year of monitoring global labor practices. The FLA not only consists of apparel and footwear companies, but universities and colleges who purchase these items - as they also have a vested interest in how this merchandise is made. The report shows the good and bad and how it's being remedied. And the FLA executive director capsulated it best: "Working together, companies and critics have taken a big step beyond talking about social responsibility and are starting to get the facts into public view." For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 p.m.
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