Reference no: EM133479303

Case studies- Boohoo

According to the research, Boohoo, a well-known online clothing company, has been charged with exploiting sweatshop labor in its supply chain for the past three years. According to reports "??Boohoo has "significant issues" in its supply chain" in 2020, numerous suppliers of the companies were allegedly participating in exploitative labor practices, such as underpaying employees, requiring them to work long hours, and failing to uphold basic health and safety regulations (Eley & Provan 2020). To investigate these claims and evaluate the company's governance and control, Boohoo hired a private investigator under the direction of attorney Alison Levitt (Eley & Provan 2020).

According to Alison Levitt's investigation, the claims of hazardous workplace conditions and underpaying employees are "well-founded and substantially true" (Eley & Provan 2020). It cited Boohoo's supply chain and the passivity of the authorities for the frequency of these problems. Additionally, it brought attention to the organization's subpar governance, monitoring, and compliance procedures. Boohoo's CEO, John Lyttle, has promised to take immediate action to enhance supply chain control, supervision, and compliance. Moreover, the company intends to bolster its management team with non-executive members, guarantee that qualified directors make up the majority, and hire an impartial overseer to supervise change implementation. After the immediate response from Boohoo, its market shares recovered after initially falling. The examination, which looked at 62 suppliers, discovered shortcomings in the fields of identification verification, keeping track of hours worked, paying salaries, safety and health issues, and possible furlough fraud (Eley & Provan 2020). Additionally, it demonstrated that inadequate action had been taken in response to earlier investigations and risk evaluations. As a result, Ministers in the UK pledged to crack down on garment manufacturers that supply "fast fashion" stores, threatening penalties and shutdown for violations of safety and health legislation (Barker & Eley 2020). Meanwhile, the Labour Rights Organization also urged Boohoo to support efforts that would increase supply chain accountability.

The government's response made clear how serious the problem was and how urgent it was to take action. Due to their alleged involvement in exploitative labor practices and the possibility for COVID-19 transmission, Leicester's garment manufacturers including Boohoo have come under fire from UK officials who have pledged to take action. Boohoo was urged by labor rights groups to display more openness and have important discussions with workers (Barker & Eley 2020). Matt Hancock, the secretary of health, shared concerns about how unsanitary industrial conditions may lead to a surge in illnesses and promised that authorities would implement safety and health regulations more strictly, including through penalties and suspensions (Barker & Eley 2020).

Another criticism of Boohoo sweatshops is from society. The criticism of society organizations emphasizes the requirement for increased openness and interaction with stakeholders. Although Boohoo's readiness to collaborate with NGOs is a positive beginning, adopting the Transparency Pledge. Indeed, engaging with labor organizations would indicate a dedication to tackling workers' rights issues. Boohoo's sweatshop practices were revealed, which outraged the public and triggered movements demanding for protests and more transparency. Boohoo and other fashion brands came under criticism from activists, NGOs, and labor rights groups to address industry-wide labor abuse.

Regarding the report of Boohoo sweatshop criticism, it indicates the significant role of society and government in responding to sweatshops as it cultivates various social issues and environmental pollution toward the community. Sweatshops business create many negative impacts toward the society particularly, the living conditions of the populations. Instant action should be taken by the government to restrict the company's productions, eliminate human rights violations, increase awareness on exploited labor, and increase inclusiveness and transparency of employment in the manufacturing company, in particular the fast fashion company. Moreover, the government should raise awareness and increase more incentive for fast fashion manufacturing to implement green business policy to attain a sustainable society and growth.

Question: Discussion and analysis of the case (using theoretical perspectives and BSP concepts from modules 2 &3 to analyse the impact of the business activities on stakeholders) (write approximately 500 words)