In the Pakistan soccer-ball example, a company with a well known brand, such as Nike, had much to gain from improving the conditions of its suppliers. Why might a smaller company, providing
Cheaper non-branded products, have more difficulty with the type of improvements described in
The example?
A) Because their customers do not care about suppliers' working conditions.
B) Because they have smaller margins to absorb the extra costs.
C) Because smaller companies are less likely to be worried about suppliers' working conditions.

Question

Quizplus · Accepted Answer

Smaller companies providing cheaper non-branded products have smaller profit margins and may have difficulty absorbing the costs necessary to improve the conditions of their suppliers. This may make it more challenging for them to address supplier working conditions compared to larger brands like Nike, who have more resources to invest in such improvements.

In the Pakistan Soccer-Ball Example, a Company with a Well