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QC Geog 3D Group 2
Transcript of QC Geog 3D Group 2
Products: Clothing, accessories
Headquarters: Stockholm, Sweden
No. of stores throughout the world: 2,629 stores in 43 countries
No. of factories throughout the world: About 800 factories
3D Group 2
Chang Chun Ho (3)
Fung Pu Jian (6)
Hong Ka Lam (8)
Tung Li Chen (24)
Yip Chun Shing (31)
Yuen Cho Yin (34)
Location: Stockholm, Sweden
Controls the steps of production
Outsource production to factories in Europe and Asia.
Role of TNCs
Increased job opportunities
Status of women and rights of workers was raised significantly
More tax revenue
Financial Data of H&M:
Revenue: SEK 126.97 billion
Operating income: SEK 24.66 billion
Net income: SEK 18.68 billion
High income of TNC = large inflows of capital to the cost country
Therefore, H&M and other TNCs collectively contribute a significant percentage of GDP to Sweden
Loctions of factories:
Some employees needed to work overtime without compensation, and to work through meal and rest breaks.
In 2006, a scandal broke that the company’s Cambodian workers were forced to produce clothes in deplorable conditions
H&M refuse to pay a living wage to its workers after over 2400 workers passed out in Cambodian factories due to malnutrition as a direct consequence of low salaries
Child labour exists
In 2009, various anti-slavery groups called on H&M to stop using cotton that was picked by forced child labour
Requirements set by H&M to the suppliers
Absence of forced labour
A ban on child labour
Payment of at least the relevant minimum wage
Fundamental safety provisions
No use of banned chemicals in accordance with H&M’s Chemical Restrictions
Waste water treatment (for factories with wet processes)
Collaborated with local NGOs to develop a series of films in order to educate the workers about their rights and responsibilities
According to the Standard,
Greenpeace found out 17 brands, inc H&M, releasing sewages
Greenpeace forced TNCs to disclose plans for toxic-free production
Greenpeace selected 25 fashion brands and called on them to promise to eliminate hazardous discharges
Exploitation of workers
In the past:
Work overtime without compensation, through meal and rest breaks
Cambodian workers were forced to produce clothes in deplorable conditions
Child labour exists
H&M refused to pay a living wage to its workers after over 2400 workers passed out in Cambodian factories due to malnutrition as a direct consequence of low salaries.
= A vacuum cleaner
The Role of TNCs in Globalisation and
The Impacts in LDCs and MDCs