Book Notes

Levi’s Children: Coming to Terms with Human Rights in the Global Marketplace. By Karl Schoenberger. New York: Atlantic Monthly Press, 2000. Pp. 290. $25.00, cloth.

Levi’s Children explores the complex dynamics that define contemporary discussions about the social responsibility of multinational corporations. In particular, the book addresses the tensions that surround attempts to foster corporate accountability in the area of human rights. Karl Schoenberger addresses these topics through a revealing and sympathetic profile of Levi Strauss & Co. (“Levi’s”), interwoven with a comprehensive look at the broad array of actors that influence corporate decision-making. His analysis provides a needed voice to the dialogue on corporate activities, for it is neither condemnatory nor laudatory. Rather Schoenberger provides a realist’s view of the choices facing corporate management in a globalized economy and high-lights the exemplary characteristics of one of the apparel industry’s icons.

Levi’s was determined to operate in accordance with established ethical guidelines before such stated principles became fashionable and prevalent among apparel manufacturers. Credit for this ethos is in large part due to the values of the family that has led the company for five generations, beginning with Levi Strauss and ending with Robert D. Haas, the current chairman of the board. Schoenberger outlines the history of the company under this family’s leadership, noting that it desegregated its manufacturing facilities in the 1950s in advance of many other companies and that in 1975 it was among the first to formulate a set of formal ethical guidelines for its business operations. More recently, Levi’s drafted one of the first codes of conduct covering international manufacturing operations, a document which was published in 1992. In accordance with its stated principles, Levi’s led the way for many companies by withdrawing its operations from Burma in 1992 because of human rights concerns. Perhaps most notably, the company went against the prevailing tide of global commerce in 1993 when it announced plans to withdraw from China due to concerns about human rights violations in that country.

Schoenberger provides context for his descriptions of Levi’s by laying out the universe of institutions and individuals with whom the company must interact. In broad strokes, the book addresses the roles of such diverse actors as non-governmental organizations, the Clinton Administration, and the business leaders of the World Trade Organization in setting the tone for contemporary discussions of corporate social responsibility. In addition, Schoenberger details various initiatives aimed at improving corporate conduct,

ranging from ratings schemes, such as the Social Accountability 8000 system launched by the Council on Economic Priorities, to litigation efforts, such as the Doe v. Unocal suit. He also details the contemporary business environments facing investors and corporate management in a number of countries, most notably China, Japan, and Indonesia. Schoenberger pays particular attention to China and the ethical issues surrounding the operation of manufacturing facilities there. In one particularly effective segment, he provides a vivid description of a 1994 meeting between then Secretary of State Warren Christopher and the American Chamber of Commerce in Beijing at which the Clinton Administration’s attempt to convince business leaders to help pressure the Chinese government regarding human rights concerns was largely rebuked. China is so central to the modern globalized economy that multinationals are extremely reluctant to withdraw their operations, as Schoenberger notes when detailing the conflicts and tensions which infused Levi’s 1998 decision to abandon its plans to divest from the country.

Levi’s’ decision to remain in China despite its earlier plan to the contrary provides a key focal point for the book. The decision required both the reinterpretation and some redrafting of the company’s established guidelines for the evaluation of countries in which to operate. It was a choice largely driven by economic realities at a time when Levi’s was facing a serious decline in business. In the mid-1990s, Levi’s suffered a significant financial downturn as the classic Levi’s brand name failed to catch on with a substantial segment of the American youth market. Through his discussion of the forces that drove Levi’s decision, Schoenberger effectively lays out the two sometimes-conflicting roles of the consumer in affecting a company’s attitudes toward human rights concerns. On the one hand, the realities of the market can induce a company to cut costs by making choices that may negatively affect labor standards. Yet a company’s most valuable asset is often its brand image, a fact which has forced many companies to pay considerably more attention to the human rights implications of their operations in recent years in response to the concerns of consumers. Levi’s is a unique example of a company that has demonstrated commitment to evaluating the social and moral implications of its operations even without public pressure, and thus its difficulties in addressing human rights concerns in China are revealing of the complexity of issues raised within the modern manufacturing sector.

Levi’s Children is strongest in the way in which it provides an objective assessment of the stark realities surrounding decisions by corporate management about human rights concerns. Schoenberger provides a needed voice to discussions of corporate responsibility by laying out the simple truth that multinational companies will be hard pressed to prioritize ethical tenets when business operations are failing financially. Levi’s is a fascinating subject from which to contemplate the potential for corporations to operate ethically throughout the entirety of their operations, while also achieving success in their respective markets. While Levi’s has largely avoided the human rights scandals that have plagued some of its competitors, it is certainly not inno-

cent of the types of human rights violations inherent to the industry. Yet, it is a company that has sought to operate morally and ethically throughout its history, and with this tradition in mind, Schoenberger would like to offer Levi’s as a model for those seeking to understand the ways in which moral principles can infuse corporate strategy.

Schoenberger’s ability to provide Levi’s as an effective model for other companies seeking to navigate the ethical dilemmas offered by the modern marketplace is limited by a number of factors. First, there is a historic reluctance on the part of Levi’s management to disclose or discuss the details of its operations. Also, the ability of the company to serve as a moral leader within its industry is undercut by its ongoing financial uncertainties, significant personnel turnover among top management in recent years, and by the company’s status as a private corporation. This is where the book is weakest, for it leaves off at a time when much about the ability and willingness of Levi’s to continue its traditions of ethical leadership is unclear.

Yet Schoenberger’s choice of Levi’s as a subject for an analysis of corporate social responsibility is nevertheless extremely useful. At one point, he describes the company as caught between two sets of vocal detractors ready to critique the company’s management choices. One group “ridicules the company for getting carried away with its idealistic beliefs in corporate social responsibility at the expense of the bottom line, pointing smugly to a recent sharp decline in the company’s sales.” The other “comprises disappointed idealists, who had hoped that Levi’s would fulfill some sort of quasi-messianic role in the shaping of the moral universe of big business.” Schoenberger is extremely effective in demonstrating the lack of utility in basing management decisions on direct responses to either group of critics. Rather, he provides a middle-ground voice that is sympathetic to market realities, while remaining hopeful at the potential of Levi’s to remain true to its core values. Levi’s Children provides anyone interested in the human rights implications of modern apparel manufacturing with an important case study from which to understand and evaluate corporate decision-making.

—Sarah A. Altschuller

Copyright © 2001 by the President and Fellows of Harvard College
Harvard Human Rights Journal / Vol. 14, Spring 2001