This research examines the decision by Levi Strauss & Co. to cease its operation in China. The decision was made in 1993; however, the process of disengaging the company from China was scheduled to occur over several years in a phased shutdown of operations in the country. The findings of this case analysis are presented in discussions of (1) the major issues involved in the company's decision, together with a statement of this writer's position on the company's decision, and (2) a theoretical justification of the writer's position on the company's decision. The final section of the case analysis presents a set of recommendations for firms based in the United States which, in the future, may be in positions similar to that of Levi Strauss & Co. in 1993.
Major Issues Involved in the Company's Decision to Cease Operations in China, and This Writer's Position on the Company's Decision
The most salient issues of controversy in this case are identified first. Following this issue identification, this writer's position on the decision of Levi Strauss & Co. to cease operations in China is stated.
Salient Controversial Issues Involved in the Company's Decision to Cease Operations in China
Levi Strauss & Co. determined to its own satisfaction that human rights abuses were clear and pervasive in China. This determination was made within the context of the definition of human rights accepted by the company. The charges against China according to Levi Strauss & Co. were as follows: (1) prisoners were subject to maltreatment and forced labor; (2) freedom of association and expression were restricted; (3) dissidents were jailed in the absence of due process; (4) employers were expected to assist the government in enforcing the country's population policy; (5) Communist Party organizing was allowed in the workplace; and (6) few protection existed for intellectual property.
In addition to the human rights abuses of which China w...