Working with Non-Governmental Organizations: Schmidt Gifts
and Novelties, Inc.
Please help with the questions based on the following
scenarios:
Schmidt Gifts and Novelties, Inc. imports a product from a
company in a developing nation. Schmidt promotes itself as a socially
responsible and green organization. It provides good wages and benefits to its
employees, recycle, and complies with all environmental regulations. It has
never been cited by OSHA or the EEOC for its practices.
Recently, however, one non-governmental organization (NGO)
has accused Schmidt of violating fair trade practices because only a small
portion of the price of the imported products it sells actually benefits the
women workers who manufacture the goods in the developing country where they
reside. The NGO is making specific demands regarding fair trade.
An environmental NGO complains that Schmidt uses too much
packaging, resulting in a waste stream and environmental impact for the
consumer. The NGO wants Schmidt to reduce its packing waste by using recyclable
materials or no packaging.
The media is aware of these concerns, but has not yet
reported to the public. One writer has contacted the public relations
department for comment, and Schmidt assumes there will be some media attention
to these issues soon.
1) What specific demands were made by each stakeholder?
2 What issues must the company consider to address these
concerns?
3) What are the NGOs prepared to do if their demands are not
met?
4) What powers do these NGOs have?
5) What are the potential media reactions whether or not
action is taken by Schmidt Gifts and Novelties, Inc.?
6) What stakeholders are affected by these demands?
7) What recommendations might be made by the stakeholders?
ScholarMatic: Explanation & Answer
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