Corruption In Retail Industry Essay

1524 Words7 Pages
The main reason for such actions is that multinational companies have a few assets in those countries, which could compensate the damages that they have caused. At present, this is not possible in numerous cases. Additionally, the international courts should expand their capacities to judge legal processes internationally avoiding in this manner, multinationals do not pay for their wrong or irregular actions.
Everyone recognizes the harmful effects of corruption. Large corporations have used this practice for contracts and concessions, in poor countries through corrupt politicians who have kept their citizens in misery. This lack of transparency and control within these countries, generate absence of competition. Therefore, such has limited
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Firms must describe their principles and the codes of conduct regarding their operations. They should explain how their directors and employees behave ethically to eliminate corruption.
Retail industry is perhaps one of the most globalised businesses in the world; they manufacture their products mainly in developing countries where they can get cost advantages compared to the ones in developed countries. That is maybe the reason why they are more involved in the CSR. I have analysed some of the major players in the field: Inditex, Hennes & Mauritz (H&M), Next and Gap. In their Social and Environmental Responsibility or Sustainability reports, all of them incorporate aspects related to Suppliers, Customers, Environment, Community, Employees and Shareholders issues.
Some of the most central issues for this industry are the Supply Chain Management, the employees’ rights, like fair salaries or working conditions and the investments in communities where they operate. All this corporations describe their purchasing practices, the selection process of new supplier’s factories, the number of audits the company performs to their suppliers and the training they provide to them. Additionally, they state they are setting up the models to enforce fair wages to supplier’s employees and improve the structures to catch these objectives, jointly with local governments. Furthermore, they include their investment made in the communities regarding education and environmental projects as well as the employment opportunities created in the
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