Human Resource Management-Case StudiesLevi Strauss & Company: Levi Strauss received a letter from a tailor from Nevada Jacob Davis in 1872. Jacob used to buy rolls of cloth from Straus’s dry good company and Davis told Strauss in the letter that he used metal rivets to strengthen the construction of the overalls (trousers of strong material usually with a piece extending up to cover the chest) he made. Jacob wanted to get his technological invention patented but he could not afford so he requested Strauss to join him as a partner and so he did.
They got their invention patented in 1873 and the famous Levi Strauss & Company was formed. Levi’s is well known for its classic jeans and pure ethical management. The company’s mission statement supports their ideals, “The mission of Levi Strauss & Co. is to sustain responsible commercial success as a global marketing company of branded apparel”. The Company’s aspiration statement was also crafted on similar ideals. The company’s ethical management is not limited within the company because they make sure that these ideals are present in all their business dealings in more than 50 countries around the world with more than 500 cutting, sewing and finishing companies.
Cultural difference can always pose a problem to stick to their ideals of ethical management so the company makes sure to form partnerships with only those companies that are compatible with the company and have common standards, ethical management and ideals. Apart from this they make sure their partners are socially responsible and are involved in environment friendly business practices. They also made sure that their partners agreed to comply with company standards and ideals like in the field of employment they made sure their partners agreed to pay prevailing wage rates, demand less than 60hrs of work per week, and not employ children under 14etc.
The company held contractor evaluations to make sure that their partners are complying with their ideals and standards. Levis has been a member of Business for Social Responsibility which is an alliance of companies that share their clean and successful businesses practices through educational programs. Levis was the only company that gave insurance benefits to employees’ unmarried domestic partners (live-in relationships) in the 1990’s.
But when Levis was facing hard times they had to downsize employees in their companies worldwide. They put a halt to production in North America. They also hold a social audit of their organization including partners to check due compliance to their values and standards. Answers: 1) Yes, because there will be a guarantee that they will be a transparent company so they will be honest enough to give the right amount to shareholders when they make a profit.
2) Pros (all liberalist customers and employees will prefer Levis and the company can have loyal customers especially teenagers since times have changed) and cons (the hardliner customers and employees will boycott the company) But Levis’ target market is the youth so their policies are well balanced. 3) Being young and a liberalist I will go for Levis due to its liberal policies and ethical management.