Levi Strauss

Based on the information provided in the Case Study of "Levi Strauss & Co.: Global Sourcing", it is my recommendation LS & Co. withdraw and divest from sourcing in China. This recommendation is based upon the philosophies of the Chinese government, how they go against everything LS & Co. believe in, and the backlash this could provide for our corporate image.

China's Feelings on the Issue

"Despite the [Chinese] Government's adhere to the United Nations Charter, which mandates respect for and promotion of human rights, Chinese officials do not accept the principle that human rights are universal". This quote taken directly from a high-ranking Chinese official perfectly demonstrate the reality facing the human rights issue in China, which is that the Chinese Government will not begin to make significant changes in their practices until the way they conduct business begins to hurt their economy. The Chinese Government has been extremely stubborn in human rights areas; for example, they have continued to use forced-labor to produce many of their exported products, have not allowed inspection to all of their factories, and have even gone so far as to falsely label their products and sell them through intermediaries. From recent history, it is becoming clearer that Chinese authorities have blatantly deceived us regarding their standards and practices and will continue to do so as long as we source in their country. It is our belief China will simply use our money to boost its image, all the while continuing their same unethical and immoral practices. While it may harm us in the short-term to withdraw our sourcing from China, it is an action we must take to protect our strong corporate image in the long-run.

What We Believe In

Levi Strauss & Co. has long been known for its commitment to employees and the communities where they lived and worked, and continuously conducting business with the Chinese Government at this stage will undermine everything this company believes in. As our President and CEO Robert Haas once said, "Values provide a common language for aligning a company's leadership and its people", and further associating ourselves with leaders who refuse to agree to moral human rights practices will weaken and deteriorate our value system. LS & Co. has given Chinese officials enough notice and warning