Friday, April 28, 2006

Disney in Cambodia

In the article about how children in Cambodia are being hired in textile factories, we can see potential non market issues for Disney. Using the four I’s we can see that :

Issue: The issue in this case is that Disney is hiring underage children in textile shops in Cambodia
Interests: The people that are affected by this issue are the employees of the company and maybe the customers.
Institutions:
Information: Disney already had information that in Cambodia something like this has already happened in one of its previous factories.

Since non market issues can raise market, for example the customers of Disney can stop buying their clothes or stop buying Disney products all together. Disney should handle the matter as soon as possible to avoid problems with interest groups

The non market issue could have risen for a couple of reasons:

1- Disney became aware that it’s factories where hiring under aged children to manufacture clothes (new understanding of the situation).

2- Due to moral concerns for its workers Disney cancelled its production in Cambodia.

The stages of such an issue are:

Issue identification: Disney found that some of it’s companies where hiring under aged children to manufacture clothes
Interest group information: Disney should handled this non market issue as soon as possible to avoid problem with interest groups
Enforcement: Disney will probably ban the production of it’s products in Cambodia after what happened

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