1

Running head: LEVI’S REWARD PROGRAM

Levi Looks to Cut Its Cloth Differently by Rewarding Responsible Suppliers

MG615-154 - Managing in the Global Environment

 2
Running head: LEVI’S REWARD PROGRAM
Introduction

It is not possible to completely prevent job accidents, but companies should refer to

the importance of human life by making the best of their hands for their health. The article

“Levi Looks to Cut Its Cloth Differently by Rewarding Responsible Suppliers”, provides a

description of a research study conducted to examine that the importance of meeting

environmental, labor, and safety standards by incentivizing suppliers.

Question 1

In my opinion, the efforts by Levi Strauss could resolve the kinds of problems that led

to the disaster. Levi Strauss could start by imposing environmental, labor and safety standards

of their factories. It can impose them all by incentivizing suppliers with lower interest rates,

and discount on the interest charged. This reward program, also, can raise the standards at a

higher level. As safety standards improve, factory conditions and equipment failures will

decrease. Also, to provide a safe workplace for workers, workers should be informed about

the safety rules and trained frequently(Deresky,2017).

Question 2

International Finance Corporation and the World Bank are the other factors that are

involved. Stakeholders involve the countries, where the company was born and where the

company is manufacturing, which is consist of suppliers, employees, customers, and

government. Suppliers get incentive from Levi Strauss. Employees are the humans that need

these positions to support their families and make their living. If suppliers meet the

requirements, they will be offered lower prices. This may reduce the cost of products. Lower

cost of products may reduce the last price of products for customers. If governments realize

the positive impact on their countries, they may want to work with global organizations such

as International Finance Corporation.

 3
Running head: LEVI’S REWARD PROGRAM
The steps and process required to make this idea happen would need so much labor

calling the international organizations to follow the standards and regulations it may take

years to succeed. Only changing the regulations and standards in the countries would be such

difficult task, but if international companies have individual manufactures to get changed,

maybe they can be an example for other organizations.

Question 3

These types of incentives relate to the overall goal of sustainability for the company by

increasing the standard of ethical behavior and social responsibilities(Deresky,2017). Levi

Strauss’s initiative program is showing that its corporation is dedicated to increasing the

standards of working conditions, employee satisfaction, producing and treatment of

employees which will make a contribution to sustainability.

Conclusion

This case study shows how important it is to improve conditions of employment to

encourage workers to be more efficient, productive, and enthusiastic for their companies.

Also, the case shows that the incentives given to their suppliers are effective in their

embracement and in their work.

 4
Running head: LEVI’S REWARD PROGRAM
References

Deresky, H. (2017). International management: managing across borders and cultures: text

and cases. Boston: Pearson Higher Education.