Simulation Of A Socially Innovative Enterprise Inmates Cowed By Tasers And Torture

Simulation Of A Socially Innovative Enterprise Inmates Cowed By Tasers And Torture

Simulation Of A Socially Innovative Enterprise: Inmates Cowed By Tasers And Torture


TOC o “1-3” h z u Introduction PAGEREF _Toc376342736 h 1Overview of Case Study PAGEREF _Toc376342737 h 1Evaluation of the Article Using the Theory of Global Commerce PAGEREF _Toc376342738 h 2Evaluation of the Article Using Corporate Governance PAGEREF _Toc376342739 h 4Conclusion and Recommendations PAGEREF _Toc376342740 h 5


The globalization over the past decade has expanded in leaps and bounds. With this expansion it has changed the social fabric of some countries, in some countries with disastrous effect to human rights of their citizens. China is considered in many quotas as the hub of technology with many of the electronics used around the world having their origin in china. With this china has experienced various scandals concerning human rights from the “sweatshop scandal” to the milk powder scandal in the recent times.

This essay will look particularly into the effect of globalization in relation to the newspaper article by Grigg and Murray, on “inmates cowed by tasers and torture” in Dongguan prison in china. This essay will analyze this article using two theories, the theory of global commerce and corporate social responsibility, to support its argument. This essay will take the view that corporate social responsibility can help mitigate the negative effects of globalization, which can be achieved by the synchronization of efforts by all stakeholders.

Overview of Case Study

Grigg and Murray (2013) introduce us to the events that are happening in the Dongguan prison. The newspaper has an interview with New Zealander Danny Cancian as he narrates the graphic details of how life is at the prison. The newspaper starts with the narration of inmate’s morning routine, where they are required to march, be in good voice and show enthusiasm. The inmates are given a breakfast of “rice water”. During the head count in the morning the prisoners are humiliated by being ordered to squat because they should not be in the same level as the guards. After the head count the prisoners are required to march singing “we are happy to go to work today”, those who show less enthusiasm are singled out from other prisoners and are pepper sprayed and tased.

The prison consists of 5400 prisoners and it is located between the giant export hubs of Shenzhen and Guangzhou. The prison was established in 1988 to take advantage of china’s prominence as the “world’s factory”. The prisoners are given a target which in the prison it is termed as “making points”. The prisoners who make these points consistently during their stay in the Dongguan prison have their stints in prison shortened in reward for their “hard work”. Grigg and Murray (2013) state that, the prison operates more like a production line rather than a prison. The former justice minister of China, in one of the interviews stated that the prison must finance their activities and must have a structure that is similar to any other commercial structure. He went further to state that the prison warder is not just the director of the prison but a manager of a business. The guards in the prison receive their salaries depending on the output of the prisoners. The prisoners were paid very poorly in order to save costs. Food was also one of the ways in which the prison could reduce their costs of operations.

In the narration that Danny Cancian gave about the prison, he illustrated how they would work hours on end with pour malnutrition. Cancian illustrates his experience where he was supposed to make 1000 inductors daily for him to attain his quota. He explains the process of making this inductors and how it led to him having arthritis. He also gives us the consequences of not making your daily quota, where those who did not attain this were tased. Cancian also tells a story in which one of the inmates was peppered sprayed on his face until his skin pilled off and how he was tased on the mouth.

An investigation carried out by the Australian Financial Review that concentrated on the Dongguan prison revealed that, big global companies such as Qantas, British airways and Emirates have their products made in Dongguan prison. According to Grigg and Murray (2013), most of the big global companies sign deals with overseas manufacturing deals with an aim to reduce cost of production. The AFR raised questions to Qantas about the conduct of its operations overseas and this lead to Qantas suspending dealings with its supplier Airphonics while investigations were being conducted. The AFR also linked products from Electrolux a Swedish electronics giant and Emerson a New York listed company. During their investigations AFR identified truckloads of goods of the two multinational companies leaving the factory area of the prison. This investigation shows the evils of globalization and how certain stakeholders will take advantage of the prevailing conditions to make supernormal profits.

Evaluation of the Article Using the Theory of Global Commerce

The onset of the industrial revolution initiated a chain of events and was the precedent of what has come to be known as globalization. Globalization refers to the interconnection of different markets beyond geographical boundaries. Globalization not only enhances international trade but it also encourages cultural exchange among markets (Kentor, 2001, p. 395). Globalization has helped encourage the increase in the number of multinational companies today. This has been further encouraged by the decrease in barriers in terms of investments and trade among countries (Bird, 2003, p. 25). Globalization has also been boosted by the increased levels of technological innovations and advancements.

The main objective of many business organizations is profit maximization and minimization of costs. With the expansion of organizations to a global stage, organizations have to look for alternative ways to cut costs and still make profits and at the same time satisfy internal and external stakeholders. The inequality that exists within different countries, in terms of resources, labor and finance has factored in on many organizations as a window in which they can exploit. This can be seen in most companies having their head offices in one country but the actual manufacturing and production of their products is in another country. With these inequalities there has been the increased need for the mobility of goods, services, capital, skill, expertise and the knowledge. This can be seen in the article where many multinational companies outsourced to Dongguan prison in order to reduce costs of production in their home countries. Grigg and Murray (2013) prove this fact, by stating that it is not unusual for companies to sign deals with overseas manufacturers to produce goods at a lower cost than can be achieved in Australia.

Globalization has both positive and negative effects in a given economy and society. On one hand, globalization enhances the development levels of technology of host countries. It also improves the employment levels and facilitates the integrations of different cultures. On the other hand, globalization encourages outsourcing of work and the foreign direct investment (FDI) channeled to other countries will lead to a decline in the levels of employment in home countries of the MNC’s. The outsourcing of work from other countries by multinational companies has significant effect on the home country of these companies.

In the article case study, we see the effect of the infiltration of companies into china and the effect it has had on the way they conduct their businesses. The moral fabric of china economy has been on sharp criticism in recent times because it turns a blind eye to human rights and labor violations of its employees. This can be seen by the sheer magnitude of scandals that have rocked china. According to Griggs and Murray (2013), the Dongguan prison’s operations are thought to be typical of hundreds of prisons across China. This shows us the magnitude of the effect of globalization has on china. Multinational companies such as Qantas, British airways and Emirates have taken advantage of the cheap labor offered and outsourced work at reduce costs from Dongguan prison. This case presents us with one of the major effects of globalization, the effect it has on the moral fabric of an economy. This is seen clearly in the case where the former minister of justice indicates that the prisons must fund themselves and the prisons should act like commercial organizations.

Evaluation of the Article Using Corporate GovernanceCorporate governance is the art of balancing the interests of employees, customers, communities and business partners with those of the shareholders. Corporate governance has in the recent times established itself as an instrument of reform in many countries worldwide. Corporate governance provides a framework in which the rights of every stakeholder in the organizational structure, is catered for. Basically corporate governance is an organizational issue and this is seen in the difference depending on the organization.

With the world increasingly being rocked by major scandals ranging from Enron, Monsanto, Wal-Mart, Countrywide and Nike, the value of corporate governance is increasingly becoming a valuable asset for organizations. This can be seen in the fact that investors are willing to pay more to companies that have a management that is managed properly and is structured. With the increase in terms of innovations and the development of modern times in the 21st century, the convergence of corporate governance and corporate social responsibility (CSR) was inevitable, (Wei, 2011). CSR is a vital aspect of corporate governance, and it is on this precinct that the evaluation of the article will focus on CSR.

This evaluation is unique in that it focuses not only on a prison but convicted individuals. Despite this fact, CSR underscores the importance of balancing the interest of internal and external stakeholders. In the article we come to see that the prisoners are paid poorly and their working conditions are very poor. The functionality of the prison depends mainly on the output of its operations hence; we see it in the context of an organization. CSR in this advocates for better pay for the prisoners, in the article we see that the prisoners are paid 8 Yuan ($1.30) a month. The conditions in which they work are also deplorable, in the article we see Cancian contacting arthritis as a result of the job they do. The article also highlights how the sick are ignored and left for dead.

The importance of CSR is seen in the case of Qantas after it was revealed that they have dealings with the prison, Qantas had to suspend dealings with its suppliers, so as to save face during the investigation (Sacconi, 2004, p. 80). The prioritization of CSR efforts by MNC’s through effective policies for long term sustainability will streamline their suppliers’ code of conduct.

Conclusion and RecommendationsGlobalization and corporate governance are vital aspects in the success of any organization in the world today. Based on the article that we evaluated we have come to see the negative effects of globalization. The essay has also highlighted the importance of corporate governance in relation to CSR. CSR states a couple of recommendations that the prisons may put into consideration in the facilitation of better working conditions for their prisoners. This are some of the recommendations that can help the prison to improve its productivity, while at the same time make sure that they uphold the business code and ethics within the prison. These include measure such as:

Better working conditions for the prisoners in terms of the amount of work that they do

Better pay for the amount of work they do

Institution of better welfare of the prisoners through giving them incentives such as rewards for prisoners who are best in overall production

Better medical facilities and care for the prisoners

The mitigation between globalization and CSR helps in ensuring that human rights and labor rights are not violated in the process. This essay in its evaluation has analyzed how this can be achieved and its importance. In the essay we see the effect that globalization has on china, with many prisons being turned into a source of cheap labor. The prisoners experience deplorable conditions in the name of making profit and minimization of costs.


Angus Grigg and Lisa Murray (2013), “Inmates cowed by tasers and torture”, Sunday Star – Times [Wellington, New Zealand] 30 June 2013.

Bird, A. (2003), “Toward an emergent global culture and the effects of globalization on obsolescing national cultures”, Journal of International Management, vol. 9, no. 4, pp. 395-407.

Kentor, J. (2001), “The long term effect of globalization on income inequality, population growth, and economic development”, Social Problems, vol. 48, no. 4, pp. 23-45.

Sacconi, L. (2004), “A Social contract account for CSR as extended model of corporate governance (Part II): Compliance, reputation and reciprocity”, Journal of Business Ethics, No.11, pp. 77–96.

Wei, J. (2011), “Corporate social responsibility – A comparison between Vietnam and China”, International Journal of Governance, Vol. 1, No.1.