Question 1 Wal-Mart should be the example/best practice that other businesses use when complying with their code of ethics because they are the largest retailer in the world. From reading the article it seems they may not be that example/best practice. They have high visibility and should be the model company in working to prevent human rights violations. The costs will be higher because there needs to be compliance officers stationed in each factory to oversee the working conditions and manage any problems.
Question 2 The suppliers don’t want to lose Wal-Mart’s business so I can see where they would cut corners not to lose it, such as longer work hours, less pay, shorter breaks, no days off, etc. A majority of these factories are located in poor countries where the work ethic is not held to a high standard as it is in other more modernized countries.
Question 3 In reading the article it seems that Wal-Mart is moving in the right direction as far as performing audits, but as you can see there are ways the companies can get around that. Having 40.3 percent of factories at “high-risk” is to me, unacceptable. Giving them 120 days to correct the violations is a good practice, but more unannounced audits should be performed and should be more frequent to make sure they are in constant and continuous compliance.
Question 4 I feel that Wal-Mart should not be doing business in those countries. Those companies cannot be trusted to adhere to rules and regulations established by Wal-Mart. I feel in the long run it will end up costing Wal-Mart more money because of unethical behavior. They would need to spend enormous amounts of money to set up a system where these companies can be monitored and policed. That would mean bringing in their own people instead of relying on that particular factory to hire compliance officers.

It was disheartening to me to read about how the factories actually hired companies to advise them how to pass an audit! Would it not have been easier to run the factory ethically to begin with? From looking at the percentages it seems that the majority of these factories are in violation of Wal-Mart’s ethical supplier code of conduct. All employees should be treated with dignity and respect by their employers and should not have to work in an unsatisfactory environment.

Summary – Chapter 5 The Ecuadorian Rose Industry started 20 years ago and has grown immensely since then. It is the world’s fourth largest producer of roses. The population of Cayambe has increased from 10,000 to 70,000 in 10 years due to the rose industry. The revenue generated from this industry has enabled them to pave roads, state of the art irrigations systems and also build schools. The rose industry has also enabled its workers, especially the women who are able to become more independent, better provide for their families and also a better education for their children. There are worries about the growers using pesticides that are harming the workers as well as the environment. There have also been claims of the use of child labor. Consumer groups in Europe want assurances through certification that growers are equipping their workers with personal protective equipment to wear, that the workers are trained on how to use the chemicals and that they are examined weekly by doctors.

Question 1 Ecuador has intense sunlight and fertile volcanic soil along with a high altitude that roses thrive in (all around good climate conditions). Roses are grown for most of the year in Ecuador. It also gives women in that country a chance to earn a decent living and they are provided with health care and pensions. They are also able to provide a better education for their children.
Question 2 Those who benefit are the stores that sell the roses in the US and Europe. They are able to sell roses year round instead of seasonally. The roses are of good quality and come in a wide variety of colors. Those who lose are the local Rose growers that can only produce seasonally and not as good quality of roses as Ecuador can produce. The US, Europe and Ecuador all profit due to the exportation of the roses.
Question 3 The benefits for Ecuador are from the revenues and taxes. They are able to pave roads, build schools and state of the art irrigation systems.
Question 4 Because there is no certification of producers employees suffer from the use of dangerous pesticides. Workers are becoming ill and women are suffering miscarriages. They are not given the proper protective gear to wear when using pesticides nor have they been trained on how to properly use the chemicals.

The Ecuadorian Rose Industry has rapidly expanded and provided a better quality of life for its workers especially the women. They make more than the average wage and are better able to provide for themselves and their families. Businesses in the US and Europe now have beautiful roses year round. The concern I have is with the use of pesticides that may harm the workers and the environment. Although some growers have volunteered program established to help customers identify responsible growers it should be mandatory they have some sort of certification to let buyers know the roses were grown responsibly without affecting the health of the workers and damaging the environment.

Summary – Chapter 6 In 2007 global food prices began to increase due increased food consumption of rapidly developing nations. Meat is in part due to the rising prices due to the fact farmers have to feed their cows more grain so they can keep up with meat production. Bio-fuel production is another reason. The US and Europe are trying to combat global warming and in doing so they are giving subsidies to farmers to increase production for bio-fuel but has decreased production in crops that are not subsidized for bio-fuel production. Also, high tariffs on other products that can also be turned into bio-fuel such as sugar cane which is also environmentally friendly.

Question 1 The demand in increase raises the price and the farmers who produce corn and soy beans make a profit from the government policies. Tariffs increase the price of sugar cane which decreases the income to those farmers. They can’t compete with the corn and soy bean farmers.
Question 2 Richer countries should revise their polices to assist those poorer countries. I feel this would be the moral thing to do.
Question 3 Global warming is a serious concern but by increasing the production of bio-fuel, it is also increasing the cost of food. Poorer countries cannot afford the high cost of food and this is a matter of life and death to them. Another alternative would be to seek out other sources of fuel that would not impact the cost of food. This is a problem that needs to have other alternative researched. Global Warming is a concern but higher food costs affect lives. There needs to be government policies introduce to farmers to step up their production of edible crops as well as bio-fuel crops.