Legal Implications for International Expansion essay

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" (Lee, 2009)

Core labor standards are stated by Lee (2009) to be "more or less the basic labor rights: that is, the International Labor Organization (ILO) core labor standards that have been confirmed by the UN Global Compact and adopted or discussed by the GRI and ISO 26000." (Lee, 2009) Those standards include the following: (1) a guarantee of the three labor rights (organizing, collective bargaining, and collective action) based on freedom of association, (2) a ban on forced labor, (3) a ban on child labor, and (4) no discrimination in labor. (Lee, 2009) Stated as important secondary standards are those as follows: (1) responsibility for employment; (2) industrial safety and health; and (3) training and education. (Lee, 2009) Lee states that western multinational companies "...are capable of investment, innovation, and reporting for SR, because they have been exposed to the CSR movement for some time. Thus companies in developing countries are sure to be disadvantaged under the ISO 26000 regime. Although it is a "voluntary" standard, if companies from developed nations make it a requirement for their transactions, most companies from developing nations, as "vendors," would have to accept it." (Lee, 2009)

Therefore businesses must necessarily "...internalize the ISO 26000 norms so that they are always ready, rather than dealing with them whenever a situation arises. The costs for CSR will not hinder a company's competitiveness; rather, CSR is likely to strengthen competitiveness in the long-term. The brand that will prevail in the fierce global competition must have a brand power built upon consumers' trust. And the best way to build that trust and to become the product of consumers' choice is to create an image as a socially responsible company. In that sense, CSR may actually be perceived as an entry barrier built by leading companies." (Lee, 2009) Finally, Lee reports that the major international stock exchanges "...are already using indices that reflect each company's CSR, of which employment responsibility is an important factor. Considering the international trends and market trends explained above, it seems apparent that CSR has become an essential strategic factor in business management. It has become an endogenous factor, not an exogenous one." (Lee, 2009)

V. Thailand and Labor Standards Adjustment for U.S. Compliance

The Journal of Corporate Citizenship report dated March 22nd, 2004 states that Thai labor law and the perception of factor management of economic realities are that which "often prevent the adoption and implementation" of Voluntary Labor Standards. In fact, "conflicting labor standards, a low minimum wage and the dire financial needs of workers often result in adverse working conditions for employees in the garment industry." (Journal of Corporate Citizenship, 2004)

The Thai Labor Protection Act of 1998 makes 36 hours of overtime permissible while the Voluntary Labor Standards state 12 hours of overtime as being permissible. Stated as another major obstacle to compliance with Voluntary Labor Standards are human resource policies and management attitudes toward the workforce. The Voluntary Labor Standards corporate codes of conduct make the use of monetary fines and penalties in applying disciplinary measures illegal however; these methods are used regularly in applying employee discipline in Thai businesses.

Discrimination against and mistreatment of women in factories in Thailand is rampant and pregnancy testing is conducted in the employers initiative to avoid paying maternity leave. It is stated that under the 1998 Thai Labor Protection Act, mothers who are regular employees are entitled to 90 days of paid leave, a cost shared by the MOLSW and the employer). As a result, women job applicants are frequently asked to give urine samples and are asked if they are married. Those becoming pregnant during the four-month probationary period risk being fired." (the Journal of Corporate Citizenship, 2004)

VI. Privacy and Data Protection Laws

As already noted in this work there have been some issues with Thailand in regards to intellectual property violations. An aspect of these laws is the privacy and data protection laws, regulations and guidelines that exist at the federal and state levels in the United States and which are known to have a significant impact on business operations. The Federal Trade Commission has regulations in the area of unfair acts or deceptive practices in order to: (1) ensure that a company or other entity does what it says it will do with regard to privacy and security and (2) create general de facto standards of care for an entity collecting and using personal information. (the Journal of Corporate Citizenship, 2004) Specific federal statutes that must e considered when doing business in the United States are the following:

Gramm-Leach-Bliley Act



Privacy Act

Bank Secrecy Act

Computer Fraud and Abuse Act


Drivers Privacy Protection

Electronic Communications Privacy Act

Electronic Fund Transfer Act

Fair and Accurate Credit Transactions Act

Fair Credit Reporting Act

Federal Communications Act

Telephone Records and Privacy Protection Act of 2006


Malaysia (2009) Office of the United States Trade Representative. 8 Oct. 2009. Online available at:

Thailand (2009) Office of the United States Trade Representative.

Singapore (2009) Office of the United States Trade Representative.

Hong Kong (2009) Office of the United States Trade Representative.

Australia (2009) Office of the United States Trade Representative.

Suzan, Kenneth and Russ, Hodgson (2004) Expand Your Brand into the U.S. United States Law Articles 21 Oct 2004.

RSM: Understanding the Business Implications of IFRS (2009) RSM online available at:

Implementing voluntary labor standards and codes of conduct…[continue]

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