Answer to Question #238958 in Management for Naka

Question

Mention any example of unethical practices that have been reported in Namibia and the effects of this practice on the country or society as a whole. (10) 

Answer 1

Poor labor standards and environmental violations by Ramatex Ltd are two examples of unethical practices recorded in Namibia. The company was founded in 2002 by a Malaysian corporation to take advantage of a few African countries' duty-free exports to the US market. Workers complained of low pay and compensation, as well as extremely difficult working conditions.

The corporation used to dump industrial waste into the environment, and some of the materials weren't biodegradable, causing environmental damage. It resulted in complaints from businesspeople, which eventually pushed it to close owing to decreased demand, resulting in the loss of jobs when it closed its doors in 2008.It also resulted in a loss of government revenue due to the taxes that employees used to pay, as well as poor trade terms as a result of diminished exports abroad.