Thursday, April 26, 2007

Enlightened self-interest?

Eddie Bauer. Liz Claiborne. Phillips-Van Heusen. H&M. You know these top manufacturers? You recognise the names? Their profit margins? You probably own their garments. They are fairly global brands - Eddie Bauer ($ 410.28 million gross profit in 2006), Liz Claiborne ($2,387.47 million gross profit in 2006), Phillips-Van Heusen ($ 1,029.86 million gross profit in 2006) and H&M (whose profit margins do not appear on Google Finance).

Several international clothing manufacturers have demanded Cambodia to investigate the recent murder of a top labour leader, saying swift justice was key to their continued presence in the country's key garment sector.

The manufacturers were reacting to the February assassination of union boss Hu Vuthy, who was the third top labour leader killed since 2004 amid an escalation of attacks against workers' rights advocates.

"The recent death of Hu Vuthy has been brought to our attention. ... It is of upmost importance to us as buyers that rule of law be swift, just and transparent," said the letter, which was addressed to Prime Minister Hun Sen and other senior government officials. (Source: AFP)

I'm fairly ambivalent about this action. On the one hand, the protests of garment factory owners, especially multinationals might be the only practical pressure that the PM might bow to. He is famous for blowing off the donor governments, the UN, the opposition etc etc. But the garment factories are so necessary to keep Cambodia afloat, that the multinationals do have power. There are two men in prison for the murder of Chea Vichea that are known to be not guilty. His murder was political and requires a full investigation. Born Samnang and Sok Sam Oeun need to be released.

The letter went on to call for an international committee to be formed to investigate the deaths of Hu Vuthy and labour organiser Ros Sovannareth, as well as the 2004 killing of Chea Vichea, who was president of Cambodia's largest union.
(Source: AFP)

Perhaps the multinationals sent the letter to the PM to demonstrate their enlightened self-interest and drum up some PR. The letter would also have the effect of reminding the government of their obligations towards their business partners and the economy to a lesser extent. The corps are after a stable business environment and PR is always good for business.

On the other hand, Cambodian garment factory workers get an average of $50 in salary a month. They work long hours in cramped conditions. They are young women who are supporting extended families in the provinces. They have work and are grateful for it but the conditions are foul. In addition, the corporate watchdog Corp Watch features some of these multinationals in human rights abuses articles.

It is necessary that some entity has leverage over the government. It is good that the corps do and choose to exercise that leverage for the good of the country. However, I question their motives and some of their human rights records.

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