Disney In China

The article about Disney in china shows a non market issue that the company is facing. Analyzing the issue using the four I’s we see that:
Issue: The issue in this case is that Disney is forcing its employees to work 10-13 hours a day and paying them below the minimum wage.
Interests: The people that are affected by this issue are the employees of the company.
Institutions: The National Labor Committee stated these facts
Information: Disney has no current information about the issue so it’s conducting an investigation to see if the claims are true.

This issue could effect the companies performance because as we know non market issues can lead to market issues in this case, such market issues could be that the customers of Disney will stop buying there products all together since they are abusing their workers. The previous non market issue could have risen due to moral concern and interest group activity.

The stages that such an issue goes through are:

Issue identification: The issue was brought up by the National Labor Committee.
Interest group information: National Labor Committee is probably a committee that is there to protect various employees and it could lead to bad publicity and damage the company’s reputation
Administration: The Company is currently undergoing an investigation to measure how accurate those statements are.
Enforcement: Once the company is done with the investigation they will probably take actions to correct the issue if it did exist.