Patagonia Social Responsibility

Abstract
There are many factors to consider when companies begin looking to outsource its production to another country. Some may think that companies only outsource for inexpensive labor. This could in fact be the situation for some businesses. Those businesses do not take into consideration the need to uphold their social responsibilities. Patagonia does outsource its production to other countries. This company is not only considering discounted labor. They do take into account the working conditions of its employees. Also, they take into consideration the conditions of the factory. They do manage to care for the employees and their well-being. What if Patagonia did not care for the health of their workers? Who would be responsible for ensuring
that the workers are treated fairly and their safety is maintained? This is something that many businesses do not know or even care to learn.

Upholding Social Responsibility Many people bring products into their own home that come from China and other countries. Very few people fail to realize the behind the scenes work that is put into the making of that product. Where did the product come from? What conditions was it made in? Was the maker properly compensated? These are all things that a business would need to analyze before outsourcing its production to other countries. Patagonia realized this as their consumers began to write letters with their personal concerns. Does each business care to analyze and ensure they are enabling the best possible working environment? It can easily be said that this is not true. With this, some companies do in fact take these additional measures. The extra mile will not go unnoticed when ending profits begin to increase.
Upon whom does the responsibility lie to see that workers are treated fairly and kept safe?
Companies are held responsible not only by the government, but also by the public. International companies know that people are observing them and that anything unethical will not be overlooked. Several businesses have a “social conscience, treat workers fairly and attempt to do the best for their investors while trying to be socially responsible (What is Corporate Responsability, 2003).” Many other businesses find nothing wrong with employing third world country workers to make their products no matter the working conditions. Some groups do monitor these unethical activities causing the problems to become public. They know that it does not look good to be seen as a company that is damaging the world that we live in. Businesses that do not abide by “ethical and environmental laws also await hefty fines and penalties (What is Corporate Responsability,
2003).”
If a company is looking to outsource its production to another country, what are some of the factors that need to be considered?
There are numerous things that should be considered. Outsourcing businesses has been a “common practice for many years as it will allow you to cut costs significantly. (What you should know about outsourcing manufacturing, 2010)” Important concerns when it comes to outsourcing include foreign exchange rates, ethnic barriers, and international trade guidelines. It is something to consider if your business starts to get overwhelmed with customer demands. It is also important to understand that you are not there constantly to supervise productivity. You must select an outsourcing company that understands your companies needs and tries hard to meet goals. This will result in producing the high quality products you are
seeking.
Do your day-to-day decisions impact that worker in the factory? Many people do not understand there is more work than just going to a store and purchasing a sweater. If there is more of a product in demand the factory workers might have to put in overtime. With this, there family life could fall behind. Say that there is a lack of demand pertaining to a certain product. The factory workers could be laid off. If they are laid off, it could cause them to lack the funds to provide for their home. Every decision we make does impact the factory worker.
Do companies have power as well as responsibility to act socially responsibly within another country, within another culture that may be recognized as performing poorly in regard to social responsibility? Should companies exercise their potential power or should they avoid such countries? Companies do in fact have the power to act responsibly within another country. You are not in that country to monitor the day-to-day productivity. You would have to set rules that the outsourcing company will comply with. They will have to be driven and have accountability to meet the set goals. If they are not meeting the productivity goals, you will be responsible to act accordingly. You are responsible to follow up and ensure the rules are being followed to allow for the best quality products. Companies should not avoid third world countries. They should use this as an opportunity to expand and establish the less fortunate countries.
In conclusion, companies are responsible for upholding their social responsibility when outsourcing there production. Outsourcing does greatly benefit the company as well as the factory workers. Companies will have to set rules that will need to be followed by the third world country. You will need to follow up on productivity to ensure targets are being met. If rules are being followed, the best quality product will be produced. If quality product is being produced the company will remain profitable.

References http://www.businessknowledgesource.com/manufacturing/cat_outsourcing.html http://www.wisegeek.com/what-is-corporate-responsibility.html http://en.wikipedia.org/wiki/Social_responsibility http://www.investopedia.com/terms/s/socialresponsibility.asp