You have recently applied for a position as a graduate with a company in the very competitive retail fashion business. The company sells low cost fashion items in its own branded shops throughout Australia. It produces its clothing in factories located in developing countries mainly in South East Asia. For the second round interview the company is interested in determining your knowledge and skills in a number of areas and consequently has asked you to prepare written responses to a number of questions to be submitted before your interview. Two of them are as follows:

Question 1;

Subsequent to the collapse of the Rana Plaza where over 1,000 people (many of them garment workers) were killed, our company has come under increasing pressure from our customers and lobby groups to disclose information about our Corporate Social Responsibility (CSR) in relation to our factories. In particular concerns have been raised about the working conditions from both a physical environment perspective and a monetary reward (pay) perspective of the people who make the garments that we sell. At the moment the company meets all of its legal requirements with respect to the working environment in the factories and the payment of its employees. However the company is considering going beyond its legal requirements and providing better physical working conditions for its employees and to pay them above award wages, even though this will result in a small initial reduction in profits. At the interview we would like to hear your views as to whether or not we should undertake these initiatives. Prior to the interview you are required to forward to us a 500 word report that expresses your view. Your report should clearly indicate:

(a) The theoretical support for taking these initiatives and application of the theory to this particular case and

(b) Identification and analysis of 2 specific potential consequences of taking and 2 specific consequences of not taking the initiatives that you can see might result

(c) Your view