By Charles Mitchell

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Additional resources for A Short Course in International Business Ethics: Combining Ethics and Profits in Global Business (The Short Course in International Trade Series)

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The newly founded CEPAA developed SA8000 in accordance with 12 International Labor Organization conventions and United Nations human rights treaties. The SA8000 standard represents a consensus of recommendations from the international business community, non-governmental organization, and labor organizations. The objective of this group was to develop the first auditable international standard for socially responsible trade. CEPAA accredits independent auditing firms to monitor conformity to the SA8000 Standard, applying the same criteria used for the well-established ISO 9000 and ISO 14000 quality and environmental management system standards.

An employee survey carried out in 1999 by Walker Information and the Hudson Institute found that Chapter 4: Does Virtue Pay? 31 32 Chapter 4: Does Virtue Pay? only 9 percent of employees who thought their senior management was unethical were inclined to stay with their companies while 55 percent who believed their leaders were ethical wanted to stay. Employees responded so strongly to Germany's Hugo Boss AG's partnership with the Guggenheim, that several unions stipulated in employment contracts that Hugo Boss continue the sponsorship.

Children who do not complete their primary education (assuming it is available) are likely to remain illiterate and never acquire the skills needed to get a job and contribute to the development of a modern economy. Also, the use of child labor can ruin a company's reputation. This is especially true in the case of transnational supply and service chains, where the economic exploitation of children, even by a business partner, can damage a brand image and have strong repercussions on profit and stock value.

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