This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

So What if Samsung Violates Labor Laws in China?: Opinion

Stocks in this article: AAPLHMCTMNSANY

I asked several public relations pros in greater China about how these companies beat the labor NGO rap, and no one answered. Trade secret?

Drawing on my years as a reporter, I'd guess first that general news audiences are fatigued by the China labor rights story. They've heard it before and may realize, too, that Chinese workers are earning more money now than a decade ago. It would be different if workers were striking at factories in, say, North Korea.

Secondly, MNCs stung in labor rights reports usually respond before a case leaches too far into the media or stops work for too costly a period of time. They often blame contractors, a way to own up (better than a denial) without owning up.

Samsung, the world's biggest smartphone maker, acknowledged labor problems at factories run by suppliers shortly after the NGO report came out. The company said it had checked out 105 Chinese suppliers and would give those suspected of poor labor practices two years to change, the official China Daily newspaper reported. Samsung also called reducing overtime a priority.

Anyway, Samsung earned revenue of 165 trillion won (US$152 billion) last year and 145 trillion won in the first nine months of this year, with higher profits compared to the first three quarters of 2011. You might see a blip or a dip in the fourth-quarter financials following the stir over its China factories, but it's not worth selling shares over. Or you might see more growth in revenue and profits.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,072.31 +98.00 0.58%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,535.9230 -13.3030 -0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs