Working with Non-Governmental Organizations: Schmidt Gifts and Novelties, Inc.

Schmidt Gifts and Novelties, Inc. imports a product from a company in a developing nation. Schmidt promotes itself as a socially responsible and green organization. It provides good wages and benefits to its employees, recycle, and complies with all environmental regulations. It has never been cited by OSHA or the EEOC for its practices.Recently, however, one non-governmental organization (NGO) has accused Schmidt of violating fair trade practices because only a small portion of the price of the imported products it sells actually benefits the women workers who manufacture the goods in the developing country where they reside. The NGO is making specific demands regarding fair trade.An environmental NGO complains that Schmidt uses too much packaging, resulting in a waste stream and environmental impact for the consumer. The NGO wants Schmidt to reduce its packing waste by using recyclable materials or no packaging.The media is aware of these concerns, but has not yet reported to the public. One writer has contacted the public relations department for comment, and Schmidt assumes there will be some media attention to these issues soon.1) What specific demands were made by each stakeholder?2 What issues must the company consider to address these concerns?3) What are the NGOs prepared to do if their demands are not met?4) What powers do these NGOs have?5) What are the potential media reactions whether or not action is taken by Schmidt Gifts and Novelties, Inc.?6) What stakeholders are affected by these demands?7) What recommendations might be made by the stakeholders?Schmidt Gifts and Novelties, Inc. imports a product from a company in a developing nation. Schmidt promotes itself as a socially responsible and green organization. It provides good wages and benefits to its employees, recycle, and complies with all environmental regulations. It has never been cited by OSHA or the EEOC for its practices.Recently, however, one non-governmental organization (NGO) has accused Schmidt of violating fair trade practices because only a small portion of the price of the imported products it sells actually benefits the women workers who manufacture the goods in the developing country where they reside. The NGO is making specific demands regarding fair trade.An environmental NGO complains that Schmidt uses too much packaging, resulting in a waste stream and environmental impact for the consumer. The NGO wants Schmidt to reduce its packing waste by using recyclable materials or no packaging.The media is aware of these concerns, but has not yet reported to the public. One writer has contacted the public relations department for comment, and Schmidt assumes there will be some media attention to these issues soon.1) What specific demands were made by each stakeholder?2 What issues must the company consider to address these concerns?3) What are the NGOs prepared to do if their demands are not met?4) What powers do these NGOs have?5) What are the potential media reactions whether or not action is taken by Schmidt Gifts and Novelties, Inc.?6) What stakeholders are affected by these demands?7) What recommendations might be made by the stakeholders?

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