Upholding the Gloves, Neglecting the Hands: Top Glove’s Struggle with Employee Welfare: Human Resources Management Assignment, OUM, Malaysia

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Open University Malaysia (OUM)

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Individual Assignment

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Human Resources Management Assignment

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Date

27/03/2024

Title: Upholding the Gloves, Neglecting the Hands: Top Glove’s Struggle with Employee Welfare

Top Glove Corporation Berhad, the world’s largest manufacturer of gloves, has long been celebrated for its financial success and dominant market position. However, behind the scenes, the company has faced significant scrutiny and criticism regarding its treatment of employees and labor practices. This case study delves into the challenges and controversies surrounding Top Glove’s handling of employee welfare issues.

Founded in 1991 by Tan Sri Lim Wee Chai, Top Glove quickly rose to prominence, fueled by the global demand for rubber gloves, especially in the healthcare industry. The company’s relentless pursuit of expansion and efficiency propelled it to the forefront of the glove manufacturing sector, securing lucrative contracts and dominating market share.

Amidst its meteoric rise, Top Glove found itself embroiled in controversy over its treatment of employees, particularly migrant workers who comprised a significant portion of its workforce. Reports began to surface detailing labor rights violations, poor working conditions, and substandard living conditions in Top Glove’s factories and worker accommodations.

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Migrant workers, predominantly from countries like Nepal, Bangladesh, and Myanmar, were recruited by labor agents and employed by Top Glove under often exploitative conditions. Many workers faced long hours, low wages, inadequate safety measures, and restricted freedom of movement. Additionally, issues such as passport confiscation, debt bondage, and lack of access to healthcare exacerbated the situation.

As allegations of labor abuses gained traction, Top Glove faced increasing pressure from human rights organizations, media outlets, and international stakeholders. Calls for accountability and reform reverberated across the globe, casting a shadow over the company’s reputation and raising questions about its commitment to ethical business practices.

Despite mounting criticism and calls for transparency, Top Glove initially remained largely silent on the issue, offering vague assurances of compliance with labor laws and industry standards. The company’s response, or lack thereof, only served to fuel public skepticism and intensify scrutiny.

Faced with mounting pressure and reputational damage, Top Glove eventually began to take steps to address the welfare concerns of its employees. The company pledged to improve working conditions, enhance worker accommodations, and strengthen oversight of its supply chain.

In a significant move, Top Glove embarked on a journey of corporate social responsibility, implementing measures to uphold the rights and dignity of its workers. This included initiatives such as conducting regular audits, establishing grievance mechanisms, and collaborating with NGOs and industry partners to drive positive change.

While Top Glove has made progress in addressing employee welfare issues, the journey toward true accountability and sustainability is ongoing. The company must remain vigilant in its commitment to fair labor practices, transparency, and ethical leadership. By prioritizing the wellbeing of its employees, Top Glove can not only regain public trust but also set a precedent for responsible corporate conduct in the glove manufacturing industry.

Top Glove’s journey serves as a cautionary tale of the challenges and complexities inherent in balancing business success with ethical considerations. As the world’s leading glove manufacturer, the company has a responsibility to prioritize the welfare and rights of its employees. By confronting these issues headon and embracing a culture of accountability and compassion, Top Glove can pave the way for a brighter future for its workforce and the industry as a whole.

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