白领商务英语－经典案例3：Levi Strauss

    Facing Business Challenges at Levi Strauss

Can a company be socially responsible and successful?

Levi Strauss & Company chairman and chief executive officer Bob Hass had some problems on his hands. After taking over leadership of the world-famous blue-jeans maker¹ in 1984, Haas had worked hard to revitalize the company’s long-standing² commitment to ethical³ and socially responsible behavior. However, changes in consumer tastes and stiff competition from rival clothing manufacturers were hitting the company hard on all sides. In order to remain competitive, Hass would have to make some tough decisions that could threaten the company’s principles.

The original Mr. Levi Strauss had a simple business mission—make and sell quality work pants for San Francisco’s gold-rush miners. However, Strauss also demonstrated a strong social conscience and commitment to employees early on. During the Great Depression , workers were paid to lay a new floor in the factory until business picked up. By the 1960s, the company had become a vocal⁴ advocate for racial integration⁵ and a leader in corporate⁶ diversity programs.

However, by the time Bob Haas (great-great-grand-nephew of Levi Strauss) took over in 1984, the company seemed to have lost its social conscience. Levi’s had expanded aggressively into product lines that were ultimately unprofitable. The company was bloated , profits were falling, and management was more concerned with numbers than with values. Haas believed that public shareholders⁷ and stock analysts⁸ had blurred⁹ the company’s vision by demanding short-term profit gains over long-term goals. So with the help of friends and family, Haas bought up the remaining public stock and set out to turn the company around.

Haas began to streamline¹⁰ the company, which meant taking the painful step of cutting the work force by a third. To reward and motivate those who remained, he developed an aspirations¹¹ statement with companywide goals based on ethics¹², diversity, environmental stewardship¹³ , teamwork, trust, and openness. He backed up his statement by training employees in leadership, diversity, and ethical decision making and also by linking employee compensation to performance in these areas. “A company’s values —what it stands for, what its people believe in—are crucial to its competitive success,” Haas exhorted¹⁴ . “Indeed, values drive the business.” Levi’s also spent large sums to reduce the impact of its operations on the environment. At the same time, the company shed unprofitable clothing styles and refocused on traditional jeans and the new casual “Dockers” products. With revitalized company values, soaring staff morale¹⁵, and revamped product lines, Levi Strauss enjoyed double-digit gains in sales revenues and profits.

However, the 1990s brought new crises. First, reports of widespread human rights abuses in some Asian countries led the company to question the ethics of its operations there. Second, Levi’s discovered that some of its suppliers in Asia were making Levi’s products with child labor¹⁶. And third, Levi’s own failure to spot new clothing trends, modernize¹⁷ its production facilities, and keep retailers¹⁸ happy resulted in declining jeans sales. The situation worsened as new competitors undercut Levi’s pricing by manufacturing the majority of their products overseas. (Levi’s still made half of its products in the United States). With demand shrinking, Levi’s again found it had too many plants and employees in the United States. But large-scale layoffs¹⁹ could undermine the social values that had once again become synonymous with the Levi’s name. Haas had to find a way to ensure the company’s long-term profitability while standing by Levi’s principles.
If you were Bob Haas, how would you balance your company’s economic needs with its goals for ethics and social responsibility? How would you deal with suppliers who don’t adhere to your company’s values? Would you take a stand against human rights abuses? How would you handle the problem of excess capacity and employees?

Meeting Business Challenges at Levi Strauss

Bob Haas knew that Levi Strauss & Company faced an uphill battle . The company had uncovered violations²¹ of its ethical standards among its Asian suppliers. Meanwhile, consumer tastes had shifted while Levi’s looked the other way , and competitors were beating Levi’s on price and service. But Haas determined²² to tackle these problems by refocusing on the original company strengths: strong commercial instincts and a commitment to social values and to the work force.

In the early 1990s, Haas developed global guidelines addressing specific workplace issues, such as length of work periods, fair wages, respect for the environment, and prohibitions²³ against child labor. To add muscle to these guidelines, the company began sending inspectors²⁴ around the world on surprise visits to look for violations. It was during one of these global audits²⁵ that Haas discovered some manufacturing contractors²⁶ in Asia employed underage workers, a clear violation²⁰ of the guidelines. However, most of the children were significant contributors to family incomes, and losing their jobs would force them into more inhumane ways of earning money. Wanting to retain Levi Strauss as their customer, the factory owners asked Levi’s management what to do. Some companies with strong values confronting this issue might simply instruct contractors to discharge underage workers. But Levi Strauss devised a unique solution with positive benefits for everyone.

The contractors agreed to suspend underage workers but still pay their salaries and benefits. For its part, Levi Strauss paid for school tuition and other education-related expenses with no obligations. When the children reached working age, they were all offered full-time²⁷ jobs in the manufacturing plants. Everyone gained. The children were able to continue their education and their family income contributions, the contractors kept their good customers, and Levi Strauss retained its quality contractors while protecting company values.

Levi’s faced more ethical problems in China, where widespread abuses of human rights clashed directly with the company’s ethical principles. So Haas decided²⁸ to phase out most of Levi’s operations in that country over a period of several years. Although some critics argued that the move was just a public relations stunt²⁹, and that losing its $50 million annual business in China was small compared to the favorable publicity³⁰ the company would receive, Levi’s maintained that its only objective was to uphold its own ethical standards. “Our hope is that conditions will change and improve so that we can revisit our decision at some time in the future,” stated one Levi’s executive.

The company could turn to its established ethical guidelines to handle the challenges it faced in Asia, but the another challenge would be harder to deal with. Demand for Levi’s products was sagging³¹, so the company had far more manufacturing capacity than it needed. The problem had several causes: (1) The company had failed to notice certain fashion trends that competitors recognized early (such as teenagers’ preferences for extra-baggy jeans), (2) the company had no consistent marketing³² message (which resulted in its blue jeans being perceived as “preppy” or for older generations), (3) the company’s slow product-delivery and restrictive pricing policies angered many retailers and prompted some to carry more competing brands, and (4) many competitors produced the majority of their products overseas using more advanced production technology and thus requiring fewer employees, which enabled them to undercut Levi’s prices.

To overcome these threats, Haas began a new campaign to listen to the needs of consumers, cut production costs, improve relations with retailers, and refocus its marketing message. Unfortunately, the situation required Hass once again to face the difficult task of laying off large numbers of workers. In early 1997 the company laid off 1,000 management and clerical employees to save $80 million in costs. Nine months later the announcement was made that Levi’s would close 11 U.S. plants and lay off nearly 6,400 production workers, a full one-third of its U.S. work force. The decision was not an easy one, but Haas and the rest of Levi’s senior managers saw it as necessary in order to keep the company profitable in the years ahead. Nevertheless, Haas was not about to let employees just walk out into an uncertain future. Some had been with Levi’s for many years. So true to the company’s high standards for social responsibility, Levi’s spent $200 million on severance³³ pay and additional benefits.

Under the generous plan, each laid-off worker received 8 months’ paid notice before the job cuts took effect; up to 3 weeks of additional pay for every year of service with the company; a $500 bonus upon finding a new job; paid health benefits for 18 months; and a $6,000 allowance for relocating, retraining, or starting a new business. In addition, Levi’s provided career counseling to employees for up to 6 months, and the Levi Strauss Foundation gave $8 million in grants to assist communities affected³⁴ by the plant closings.

Conventional wisdom holds that the costs of these progressive solutions placed Levi Strauss at a competitive disadvantage. But Bob Haas believes that decisions emphasizing costs alone do not serve a company’s best interests. And Haas has taken action on this belief time and again.

1 maker   

n.制造者，制造商

参考例句：

• He is a trouble maker，You must be distant with him.他是个捣蛋鬼，你不要跟他在一起。
• A cabinet maker must be a master craftsman.家具木工必须是技艺高超的手艺人。

2 standing   

n.持续，地位；adj.永久的，不动的，直立的，不流动的

参考例句：

• After the earthquake only a few houses were left standing.地震过后只有几幢房屋还立着。
• They're standing out against any change in the law.他们坚决反对对法律做任何修改。

3 ethical   

adj.伦理的，道德的，合乎道德的

参考例句：

• It is necessary to get the youth to have a high ethical concept.必须使青年具有高度的道德观念。
• It was a debate which aroused fervent ethical arguments.那是一场引发强烈的伦理道德争论的辩论。

4 vocal   

adj.直言不讳的；嗓音的；n.[pl.]声乐节目

参考例句：

• The tongue is a vocal organ.舌头是一个发音器官。
• Public opinion at last became vocal.终于舆论哗然。

5 integration   

n.一体化，联合，结合

参考例句：

• We are working to bring about closer political integration in the EU.我们正在努力实现欧盟內部更加紧密的政治一体化。
• This was the greatest event in the annals of European integration.这是欧洲统一史上最重大的事件。

6 corporate   

adj.共同的，全体的；公司的，企业的

参考例句：

• This is our corporate responsibility.这是我们共同的责任。
• His corporate's life will be as short as a rabbit's tail.他的公司的寿命是兔子尾巴长不了。

7 shareholders   

n.股东( shareholder的名词复数 )

参考例句：

• The meeting was attended by 90% of shareholders. 90%的股东出席了会议。
• the company's fiduciary duty to its shareholders 公司对股东负有的受托责任

8 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

9 blurred   

v.（使）变模糊( blur的过去式和过去分词 )；（使）难以区分；模模糊糊；迷离

参考例句：

• She suffered from dizziness and blurred vision. 她饱受头晕目眩之苦。
• Their lazy, blurred voices fell pleasantly on his ears. 他们那种慢吞吞、含糊不清的声音在他听起来却很悦耳。 来自《简明英汉词典》

10 streamline   

vt.使成流线型；使简化；使现代化

参考例句：

• We must streamline our methods.我们必须简化方法。
• Any liquid or gas passing it will have streamline flow.任何通过它的液体或气体将呈流线型的流动。

11 aspirations   

强烈的愿望( aspiration的名词复数 )； 志向； 发送气音； 发 h 音

参考例句：

• I didn't realize you had political aspirations. 我没有意识到你有政治上的抱负。
• The new treaty embodies the aspirations of most nonaligned countries. 新条约体现了大多数不结盟国家的愿望。

12 ethics   

n.伦理学；伦理观，道德标准

参考例句：

• The ethics of his profession don't permit him to do that.他的职业道德不允许他那样做。
• Personal ethics and professional ethics sometimes conflict.个人道德和职业道德有时会相互抵触。

13 stewardship   

n. n. 管理工作；管事人的职位及职责

参考例句：

• The organization certainly prospered under his stewardship. 不可否认，这个组织在他的管理下兴旺了起来。
• Last, but certainly not least, are the issues of stewardship and ethics. 最后，但当然不是微不足道的，是工作和道德规范的问题。

14 exhorted   

v.劝告，劝说( exhort的过去式和过去分词 )

参考例句：

• The party leader exhorted his members to start preparing for government. 该党领袖敦促党员着手准备筹建政府。
• He exhorted his elder. 他规劝长辈。 来自《简明英汉词典》

15 morale   

n.道德准则，士气，斗志

参考例句：

• The morale of the enemy troops is sinking lower every day.敌军的士气日益低落。
• He tried to bolster up their morale.他尽力鼓舞他们的士气。

16 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

17 modernize   

vt.使现代化，使适应现代的需要

参考例句：

• It was their manifest failure to modernize the country's industries.他们使国家进行工业现代化，明显失败了。
• There is a pressing need to modernise our electoral system.我们的选举制度迫切需要现代化。

18 retailers   

零售商，零售店( retailer的名词复数 )

参考例句：

• High street retailers reported a marked increase in sales before Christmas. 商业街的零售商报告说圣诞节前销售量显著提高。
• Retailers have a statutory duty to provide goods suitable for their purpose. 零售商有为他们提供符合要求的货品的法定义务。

19 layoffs   

临时解雇( layoff的名词复数 )； 停工，停止活动

参考例句：

• Textile companies announced 2000 fresh layoffs last week. 各纺织公司上周宣布再次裁员两千人。
• Stock prices broke when the firm suddenly announced layoffs. 当公司突然宣布裁员时，股票价格便大跌

20 violation   

n.违反(行为)，违背(行为)，侵犯

参考例句：

• He roared that was a violation of the rules.他大声说，那是违反规则的。
• He was fined 200 dollars for violation of traffic regulation.他因违反交通规则被罚款200美元。

21 violations   

违反( violation的名词复数 )； 冒犯； 违反（行为、事例）； 强奸

参考例句：

• This is one of the commonest traffic violations. 这是常见的违反交通规则之例。
• These violations of the code must cease forthwith. 这些违犯法规的行为必须立即停止。

22 determined   

adj.坚定的；有决心的

参考例句：

• I have determined on going to Tibet after graduation.我已决定毕业后去西藏。
• He determined to view the rooms behind the office.他决定查看一下办公室后面的房间。

23 prohibitions   

禁令，禁律( prohibition的名词复数 )； 禁酒； 禁例

参考例句：

• Nowadays NO PARKING is the most ubiquitous of prohibitions. 今天，“NO PARKING”（禁止停车），几乎成了到处可见的禁止用语了。
• Inappropriate, excessive or capricious administration of aversive stimulation has led to scandals, lawsuits and prohibitions. 不恰当的、过度的或随意滥用厌恶性刺激会引起人们的反感、控告与抵制。

24 inspectors   

n.检查员( inspector的名词复数 )；（英国公共汽车或火车上的）查票员；（警察）巡官；检阅官

参考例句：

• They got into the school in the guise of inspectors. 他们假装成视察员进了学校。 来自《简明英汉词典》
• Inspectors checked that there was adequate ventilation. 检查员已检查过，通风良好。 来自《简明英汉词典》

25 audits   

n.审计，查账( audit的名词复数 )v.审计，查账( audit的第三人称单数 )

参考例句：

• Requires that use of all bond funds is subject to independent audits. 需要使用的所有债券基金是受独立审计。 来自互联网
• Support the locations during customer-visits, audits and quality-improvement programs. 支持客户参观，稽核和提高品质等项目。 来自互联网

26 contractors   

n.（建筑、监造中的）承包人( contractor的名词复数 )

参考例句：

• We got estimates from three different contractors before accepting the lowest. 我们得到3个承包商的报价后，接受了最低的报价。 来自《简明英汉词典》
• Contractors winning construction jobs had to kick back 2 per cent of the contract price to the mafia. 赢得建筑工作的承包商得抽出合同价格的百分之二的回扣给黑手党。 来自《简明英汉词典》

27 full-time   

adj.满工作日的或工作周的，全时间的

参考例句：

• A full-time job may be too much for her.全天工作她恐怕吃不消。
• I don't know how she copes with looking after her family and doing a full-time job.既要照顾家庭又要全天工作，我不知道她是如何对付的。

28 decided   

adj.决定了的，坚决的；明显的，明确的

参考例句：

• This gave them a decided advantage over their opponents.这使他们比对手具有明显的优势。
• There is a decided difference between British and Chinese way of greeting.英国人和中国人打招呼的方式有很明显的区别。

29 stunt   

n.惊人表演，绝技，特技；vt.阻碍...发育，妨碍...生长

参考例句：

• Lack of the right food may stunt growth.缺乏适当的食物会阻碍发育。
• Right up there is where the big stunt is taking place.那边将会有惊人的表演。

30 publicity   

n.众所周知，闻名；宣传，广告

参考例句：

• The singer star's marriage got a lot of publicity.这位歌星的婚事引起了公众的关注。
• He dismissed the event as just a publicity gimmick.他不理会这件事，只当它是一种宣传手法。

31 sagging   

下垂[沉，陷]，松垂，垂度

参考例句：

• The morale of the enemy troops is continuously sagging. 敌军的士气不断低落。
• We are sagging south. 我们的船正离开航线向南漂流。

32 marketing   

n.行销，在市场的买卖，买东西

参考例句：

• They are developing marketing network.他们正在发展销售网络。
• He often goes marketing.他经常去市场做生意。

33 severance   

n.离职金；切断

参考例句：

• Those laid off received their regular checks,plus vacation and severance pay.那些被裁的人都收到他们应得的薪金，再加上假期和解职的酬金。Kirchofer was terminated,effective immediately--without severance or warning.科奇弗被解雇了，立刻生效--而且没有辞退费或者警告。

34 affected   

adj.不自然的，假装的

参考例句：

• She showed an affected interest in our subject.她假装对我们的课题感到兴趣。
• His manners are affected.他的态度不自然。