ECOSOC. Background Guide. Chairs: Matt Sanborn Website: EagleMUNC Boston College Model United Nations Conference

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1 Background Guide Chairs: EagleMUNC Boston College Model United Nations Conference Matt Sanborn Austin Schmid Website: March 18-20, 2016

2 COMMITTEE TOPIC BACKGROUND GUIDE Introduction Note from the Chair: My name is Matt Sanborn and I will be your chair in the ECOSOC committee at EagleMUNC. I am a junior International Studies major with a minor in Economics from Laconia, New Hampshire. Welcome to the committee; we look forward to sharing this exciting journey with you. I truly appreciate Model United Nations and the role it plays in shaping the future world leaders of tomorrow. Take this fantastic opportunity to meet and engage with some of the most intelligent, motivated, and compassionate people you will probably every meet. I know I did, and I have no regrets. Please do not hesitate to e- mail me with any questions you may have, and I look forward to meeting you at EagleMUNC! Best, Matt Sanborn Note from the Vice Chair: My name is Austin Schmid and I am a junior double majoring in Islamic Civilizations and Political Science. I'm a trainer at BC's gym and an ROTC cadet. Originally I'm from sunny San Diego where I was enrolled at St. Augustine High School where I enjoyed all the government and history classes I could squeeze into my schedule. This is my third year with Model UN at BC and my second year at EagleMUNC. I'm very excited for the ECOSOC GA, it's set to be a momentous weekend with a stirring lineup of complex social and economic issues facing the world today. I look forward to seeing which delegates will rise to the top and which ones will prove to be the most memorable. Above all I am excited to see everyone challenging themselves and having the best conference of their high school careers. - Austin Background Guide written by Grace Kim

3 ECONOMIC LIBERTY VERSUS LIFE SECURITY CORPORATE RESPONSIBILTY AND HUMAN RIGHTS Historical Background The Rise of the Multinational Corporation Large corporations have become an economic, social, environmental and political force in recent times. Their immense and growing financial resources give corporations the ability to influence both the general population and public policy. The multinational corporation (MNC) in particular has had the ability to change the political and economic landscapes of multiple countries across the world. In the search for ever- larger markets, MNCs have had to involve themselves in the economic and social affairs of other societies. Much of production for the world s largest MNCs takes place in developing countries, causing gaps in supply chain and removes the corporation from the actual circumstances of working conditions. The existence of middleman suppliers as well as the fact that workers are not actual employees of these MNCs, it is easy for human rights violations to occur, and for corporations to evade responsibility. The garment industry is amongst the oldest and largest export industries and presents difficulty in guaranteeing all workers human rights in a global manufacturing world. Most developed countries outsource their garment production to other developing countries for cheaper labor. The challenges include extremely low wages, unsafe or sweatshop conditions and flexible contracts. 1 The Tazreen Fashions Factory Fire On November 24 th, 2012, a fire burned down Tazreen Fashions Ltd., a nine- story a clothing factory located on the outskirts of Dhaka, Bangladesh. The factory allegedly supplied garments to numerous global clothing brands, including but not limited to Walmart, Disney, Sears and Woollen Mill. At the time of the accident, the factory employed about 1130 workers. The fire killed 112 workers and seriously injured another Garment Workers, Women in Informal Employment: Globalizing and Organizing. Accessed Sept 5, 2015, economy/occupational- groups/garment- workers#page- top- link 2 Bangladesh: After Fire Companies Evade Compensation, Human Rights Watch, Nov 23, Accessed Sept 5, 2015, after- fire- companies- evade- compensation

4 The fire originated on the ground floor, which illegally stored a considerable amount of highly flammable yarn and fabric. A lack of training could explain why so few fire extinguishers were used, and the building itself was under construction, and it did not have any ceiling sprinklers or outdoor fire escapes. Managers initially dismissed the fire alarm and did not let the workers evacuate. Some people were able to jump out windows and survived, and many were burnt beyond recognition. 3 Source: fire- kills- more- than and- injures- many.html Those who did survive the fire were badly injured and cannot afford to pay their immense medical treatments. From the Bangladesh government, victims have only received about 100,000 Bangladesh Taka (US $1,267) in compensation, which many have used in just one year on expensive medical costs. 4 Only two companies have reportedly made contributions to the victims families significant enough to be considered compensation. Otherwise, at least five companies refused to pay the affected families on the grounds that they were unaware their clothing was being produced at the Tazreen factory, and had not given authorization for its production there. 5 Walmart claimed a rogue supplier had subcontracted work to this factory without authorization and in direct violation of our policies 6, while Disney claimed, Press reports have indicated that several boxes of sweatshirts with Disney characters were found at Tazreen. Walmart, the authorized licensee that 3 Jim Yardley, Horrific Fire Revealed a Gap in Safety for Global Brands, New York Times, Dec 6, Accessed Sept 6, 2015, fire- exposes- safety- gap- in- supply- chain.html 4 Bangladesh: After Fire Companies Evade Compensation 5 Ibid. 6 Steven Greenhouse, Documents Indicate Walmart Blocked Safety Push in Bangladesh, New York Times, Dec 5, 2012, accessed Sept 6, 2015, walmart- suppliers- made- goods- in- bangladeshi- factory- where died- in- fire.html

5 produced this product for sale in Walmart stores, has advised us that the product was not produced at the Tazreen factory but that one of its suppliers moved a small quantity of this product to Tazreen for storage without Walmart s authorization. 7 Only five months after the Tazreen factory fire, which is often compared to the Triangle Shirtwaist Fire in Manhattan in 1911, the Rana Plaza factory building in Bangladesh collapsed, killing 1,134 people. The collapse of the Rana Plaza factory building was the deadliest in the history of the entire garment industry. 8 Similarly to corporate reactions to the Tazreen factory fire, less than half of the 29+ global brands that were affiliated to the Rana Plaza have provided funds for compensation. 9 Disney- branded garments were also found in the collapsed Rana Plaza building. Source: building- collapse.html?pagewanted=all Disney s Involvement with Sweatshops In mid- 2011, a worker at the Sturdy Products factory in Shenzhen, China allegedly committed suicide after being repeatedly mistreated by her managers. Although the factory made $70 million in a quarter in 2011, they calculated lower wages for the workers if they failed to meet certain targets. 10 There was also evidence of the factory s usage of child labor, sexual harassment, forced overtime averaging 120 hours 7 Update Regarding Bangladesh, The Walt Disney Company, Dec 12, Accessed Sept 5, 2015, regarding- bangladesh 8 Ismail Ferdous, The Deadly Cost of Fashion, New York Times, April 14, Accessed Sept 6, 2015, deadly- cost- of- fashion.html?_r=0 9 Compensation is Long Overdue, Clean Clothes. Accessed Sept 6, 2015, 10 Gethin Chamberlain, Disney Factory Faces Probe Into Sweatshop Suicide Claims, Aug 27, Accessed Sept 5, 2015, factory- sweatshop- suicide- claims

6 over a month, and poor ventilation in the presence of chemicals. The corporations involved with having Sturdy Products as a toy manufacturer include Disney, Walmart and Mattel. Disney announced in May 2013 they would phase out production in Bangladesh, Belarus, Ecuador and Venezuela, based on a World Bank report of the highest- risk countries on government corruption, accountability and violence. 11 This decision made by Disney executives was met with some criticism, with many accusing the company of running away from the problems of the countries they helped to exacerbate and took advantage of. Current Issues Life Security the Right to Life The right to life is an international human right included in Article 3 of the Universal Declaration of Human Rights: Everyone has the right to life, liberty and security of person. 12 From 2003 to 2013, over 1,800 Bangladeshi workers have died in workplace disasters. 13 Although several Western corporations have appointed new executives to step up their due diligence policies, much of these policies have been limited to Bangladesh. Other developing countries are also at high risk of having their fundamental human right to life being violated, including in China, Honduras, Indonesia, Pakistan and Vietnam. 14 Factory inspections are often completely inadequate, omitting vital workplace safeguards such as fire escapes, fire extinguishers and smoke detectors. Since factory owners risk millions of dollars on their inspection rating, bribery, cheating and manipulation are common occurrences. Corporate supply chain monitoring programs are potentially feeding this corruption, because it places additional requirements on these factories without the financial support to implement them. There are not enough safety inspectors around to keep factories compliant with regulations, and the inspection industry needs extreme innovation in order to be more effective and save lives. 11 Emily Jane Fox, Disney Pulls out of Bangladesh Factories, CNN, May 3, Accessed Sept 6, 2015, bangladesh/ 12 The Universal Declaration of Human Rights, United Nations. Accessed Sept 5, Fast and Flawed Inspections of Factories Abroad, New York Times, Sept 1, Accessed Sept 6, 2015, visits- and- trickery- undermine- foreign- factory- inspections.html 14 Ibid.

7 Life Security the Right to Work The Universal Declaration of Human Rights states, everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment. 15 Those who work in garment factories of Bangladesh are amongst the worst paid in the world, with entry- level workers making the minimum wage of $68 a month. This is only after the two aforementioned workplace tragedies forced the government to vote to increase the minimum wage from $38 a month. Labor leaders protest this minimum wage increase as still not enough to be a livable wage in Bangladesh, while factory owners complain that it is near impossible to significantly raise the wage since global brands using their factories refuse to pay higher prices. This makes it difficult to hold just one of the many relevant actors responsible the government, the factory owners, and global corporations. Source: worker- advocates- condemn- rise- detentions- cambodia It is a possibility that if corporations stop production in countries such as Bangladesh, that garment workers and other impoverished, low- wage factory workers will lose their jobs in an already limited job landscape. Bangladesh exported about $19 15 The Universal Declaration of Human Rights

8 billion worth of garments from , the year of the factory fire, and $27 billion and $30 billion in the next two consecutive years 16. This sector employs over 4 million Bangladeshi, most being women. 17 If more corporations follow Disney s lead, then a drastic cut in production from Bangladeshi factories, as well as other factories around the world, would severely impact job availability and the right to work. Drastic changes need to be made in order to Other human rights violations that need to be addressed in the arena of labor include the usage of child or forced laborers, suppressing trade unions, forcing employees to handle hazardous substances and discriminating against minorities and women in the workplace. A distinction needs to be made, however, between a direct versus an indirect violation of human rights. The factory owner of the Tazreen Fashions Factory, for example, is a direct violator of human rights in that he made no effort to make his factory a safe workplace. Corporations such as Walmart and Disney are indirect violators of human rights because they were complicit in and benefited from these human rights violations in order to protect their business. Corporate Liberties and Social Responsibility In light of all the relatively recent labor controversies, multinational corporations have started to make corporate social responsibility a business imperative. This responsibility can extend to achieving some sort of social good beyond the interests of the firm or what is required of the firm by law. The laws of most sovereign states do not require corporate social responsibility, but consumers look more favorably upon businesses that make corporate social responsibility a priority. The reputation of firms is becoming increasingly important to successful business endeavors. The United Nations Guiding Principles on Business and Human Rights stresses that companies should do all they can to avoid breaching human rights, and although these guidelines are not legally blinding, many corporations have accepted these principles. There are still several major players, however, who have refused to sign the UN Guiding Principles, including Walmart. The companies that do not sign have the liberty to not sign if they choose not to, but it makes for business policies that can have indirect impacts on the enforcement of human rights. 16 Total Product Export, Bangladesh Garment Manufacturers and Exporters Association. Accessed Sept 6, 2015, 17 Bangladesh Garment Workers Get A Raise, Huffington Post, Nov 14, Accessed Sept 5, 2015, minimum- wage_n_ html

9 Bloc Positions Emerging Markets Source: and- statistics Developing countries are at higher risk of having their labor markets exploited by MNCs. ECOSOC members including but not limited to Bangladesh, Colombia, Guatemala, Haiti, Honduras and Pakistan, have had instances of labor controversy arise that usually involve its citizens, government, and large corporations. However, a major source of revenue for these same countries is their cheap manufacturing of goods from multiple sectors to numerous corporations. It is difficult to support the citizenry without isolating the corporations that will provide them income. In a highly competitive globalized market, government increases in labor regulations could push corporations away from doing business in their country. The developing bloc will need to think strategically about how to best improve labor conditions and economic development with the help of MNCs. Developed Markets Members of ECOSOC including but not limited to the United States, France, Germany, the United Kingdom and the Republic of Korea are home to the MNCs that have been accused multiple times of contributing to human rights violations. Although these countries have developed economies, these same corporations are their economies backbone. It is in the best interest of both the corporation and the countries they are based in to preserve their reputations and engage in corporate social

10 responsibilities. However, doing so could be a costly endeavor, seeing as outsourcing production is probably the easiest way to minimize costs and maximize profits. This bloc will need to innovate a way to support the livelihood of citizens their corporations do business in while maintaining low costs in high competition. Questions to Consider 1. Who is responsible for improving safety conditions and the inspection industry the corporation or the government? 2. How should a developing country balance its goals in economic development with supporting a citizenry s labor rights? 3. What obligations do corporations have in regards to enforcing human rights? 4. Who, what, and where should human rights violations be dealt with? Works Cited Bangladesh: After Fire Companies Evade Compensation, Human Rights Watch, Nov 23, 2014, accessed Sept 5, 2015, after- fire- companies- evade- compensation 1 Bangladesh Garment Workers Get A Raise, Huffington Post, Nov 14, Accessed Sept 5, 2015, minimum- wage_n_ html Emily Jane Fox, Disney Pulls out of Bangladesh Factories, CNN, May 3, Accessed Sept 6, 2015, bangladesh/ Garment Workers, Women in Informal Employment: Globalizing and Organizing. Accessed Sept 5, 2015, economy/occupational- groups/garment- workers#page- top- link

11 Gethin Chamberlain, Disney Factory Faces Probe Into Sweatshop Suicide Claims, Aug 27, Accessed Sept 5, 2015, factory- sweatshop- suicide- claims Ismail Ferdous, The Deadly Cost of Fashion, April 14, Accessed Sept 6, 2015, deadly- cost- of- fashion.html?_r=0 Jim Yardley, Horrific Fire Revealed a Gap in Safety for Global Brands, New York Times, Dec 6, Accessed Sept 6, 2015, fire- exposes- safety- gap- in- supply- chain.html Steven Greenhouse, Documents Indicate Walmart Blocked Safety Push in Bangladesh, New York Times, Dec 5, 2012, accessed Sept 6, 2015, walmart- suppliers- made- goods- in- bangladeshi- factory- where died- in- fire.html Total Product Export, Bangladesh Garment Manufacturers and Exporters Association. Accessed Sept 6, 2015, Update Regarding Bangladesh, The Walt Disney Company, Dec 12, Accessed Sept 5, 2015, regarding- bangladesh