When the company is falsely accused of the forced children labor, this accusation may seriously damage the business reputation and therefore the business performance of the company; the expected revenues are highly endangered (Thomas, 2011). Besides, numerous reports, scholarly and business studies have affirmed the fact that when the potential consumers are aware of the fact of the basic human rights violations, including the prohibition of the children labor that took place in the manufacturing process, the buying capacity of them is considerably diminished; it is particularly so in the North-American oriented markets, whose consumers are especially penchant to be influenced by these issues.
The aim of this report is to accentuate the most important recommendation to the firm and to outline the scope of actions that must be followed by the company in order to avoid negative repercussions which may hypothetically ensue from these accusations.
The Most Important Strategy
As far as the most effective tool to avoid the possible negative consequences is concerned, I highly recommend the firm to issue a press release that contains detailed information on how the firm shall proceed in order to achieve its’ market goals and to perform as effectively as it can.
The press release must be published in the Mass media sources which encompassed the potential marketing clientele of the firm, i.e. in the local newspapers and in the fashion magazines, where the major sales markets of the company are located.
The press release must alongside contain the information that the company operates in entire compliance with the local and international labor standards and fully realizes that the implication of the children labor is a serious civil misdeed which may result in big financial penalties imposed by the state.
Another important aspect of this recommendation is that the information of the press release must stress that the undercover inspections are not allowed under the law. When these inspections are done, they have no legal significance (Keenan & Riches,2007).
The Actions that the Company Needs to Take
Firstly, the firm needs to contact the editorial department of the local newspapers and fashion magazines and negotiate the conclusion of the contract, under which the magazines and the newspaper will agree to publish an official refutation of this information.
The second step is to choose an authorized representative of the firm, who will agree to make a public appearance (TV show or local news broadcast are deemed to be the best opportunities) and tell the general public that these accusations are completely false. This action is done in order to convince the potential customers of the new and existing fashion collections that the company is a law-abiding institution.
The third step is the official declaration (by means of TV broadcast or newspapers, fashion magazines or other media sources) that this undercover investigation is a result of the fraudulent actions taken by the competitors of the firm (Keenan & Riches, 2007). This investigation and the subsequent false inculpation is nothing but their endeavors to drive the company out of the market. Although it is unknown by whom the inspection was conducted, these preventive measures may help to do harm to the business positions of the competitors.
Finally, the blue and the white collar workmates of the firm must proceed with their industrial responsibilities as if nothing has happened. Providing that the firm demonstrates its assurance that everything goes well, the customers and the competitors will realize that the discovery of the children labor will not shatter the positions of the firm.
Overall, if the guidance outlined in this proposal is followed, I may guarantee that the negative consequences will not happen.