Is a multinational corporation doing business in a developing country obligated to pay its employees (contracted or subcontracted) a living wage?
Today we live in a globalized society; in the recent times world has became a single magnificent globalized village but blinded by all the success we sometimes ignore the cost of turning into a global society. Powerful multinationals have played a huge part in globalizing us and much of the development in recent history can be attributed to these huge companies. Despite colossal success of multinationals we can no longer neglect or turn our faces away from some of the adverse by products of these business practices and modern development. One of the very shameful by product of globalization is
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When this concept is combined with liability model it ensures that more powerful agents get allocated more responsibility compared to their smaller affiliates. Political responsibility model concentrates on corrective measures that can be taken and who can play the biggest part in abolishment of the injustice that is core of sweatshops. To support these claims this paper would also use foundations of social responsibility laid by O’Neil and works of Arnold. This essay would also use Maitland’s paper to castigate Young’s point of view and existence of sweatshop and the conclusion of this paper would be by supporting the political model and trying to prove it’s the best remedy of the situation because sweat shops are an abomination to the society and should be controlled or at least improved.
The existence of sweatshops can be attributed to many theories some theorist give economic explanations other argue about human rights and morality of the businesses. All the theories regarding the subject matter cannot be discussed as there are too many point of views and it is hard to find a robust solution to the problem but political model come closest. Rather than handing all the responsibility to a single agent it distributes the responsibility to everybody according to there size and influence. Political responsibility theory makes sure that everybody involved in the global supply chain and business arena shares some form of responsibility and can influence
The Sociological perspective, Functionalism is defined as “the theory that various social institutions and processes in society exist to serve some important function to keep society running” (Conley, 2017, p. 31). A social institution is a complex group of interdependent positions that together perform a social role and reproduce themselves over time (Conley, 2017, pg. 15). The main social institution important in this topic of sweatshops is the Economy, the Economy drives the social aspects of the industries that sweatshops exist in. The economy is a big social institution because it produces job and products and essentially governs the exchange of goods and services internationally. The function is to produce products with the least amount of cost for the manufactures so that the companies can make a profit and the cycle then reproduces over time.
A majority of the clothing worn and purchased today in the United States has been manufactured overseas in sweatshops. Since the beginning of factories and businesses, owners have always looked for a way to cut production costs while still managing to produce large quantities of their product. It was found that the best way to cut costs was to utilize cheap labor in factories known as sweatshops. According to the US General Account Office, sweatshops are defined as a “business that regularly violates both wage or child labor and safety or health laws”. These sweatshops exploit their workers in various ways: making them work long hours in dangerous working conditions for little to no pay. Personally, I believe that the come up and employment of these sweatshops is unethical, but through my research I plan to find out if these shops produce more positive than negatives by giving these people in need a job despite the rough conditions.
Time and time again, there have been opposing views on just about every single possible topic one could fathom. From the most politically controversial topics of gun control and stem cell research to the more mundane transparent ones of brown or white rice and hat or no hat—it continues. Sweatshops and the controversy surrounding them is one that is unable to be put into simplistic terms, for sweatshops themselves are complex. The grand debate of opposing views in regards to sweatshops continues between two writers who both make convincing arguments as to why and how sweatshops should or should not be dealt with. In Sweat, Fire and Ethics, by Bob Jeffcott, he argues that more people ought to worry less about the outer layers of sweatshops and delve deeper into the real reason they exist and the unnecessariness of them. In contrast, Jeffrey D. Sachs writes of the urgent requirement of sweatshops needed during the industrialization time in a developing country, in his article of Bangladesh: On the Ladder of Development. The question is then asked: How do sweatshops positively and negatively affect people here in the United States of America and in other countries around the world?
Bob Jeffcott supports the effort of workers of the global supply chains in order to win improved wages and good working conditions and a better quality of life of those who work on sweatshops. He mentions and describes in detail how the conditions of the sweatshops are and how the people working in them are forced to long working hours for little money. He makes the question, “we think we can end sweatshops abuses by just changing our
They often use child labor, lack workers’ benefits, and use intimidation as means of controlling workers (Boal, Mark). Typically, sweatshops are found in developing countries, however, they are also a prevalent problem in many first world countries including the United States. Many manufacturers claim that sweatshops exist in order to keep prices down for consumers, while allowing profit. On the contrary, there is also substantial evidence that goes against these beliefs. For instance, a study showed that while doubling the wage of sweatshop workers would increase consumer price by 1.8%, consumers are willing to pay 15% more with the assurance that the product was made with fair labor (11 Facts About). This, however, is a hard argument seeing as the circumstance was hypothetical and if prices were actually raised, there is no way to assure that consumers would react the same way. Either way, both sides of the argument can agree that the conditions are not good, it is just a matter of analysing the cost vs. the benefit to determine their necessity. This leads to several questions: Are sweatshops a necessary evil, how could they be abolished, and what realistic goals regarding the bettering of worker conditions can be met? Through the answering of these questions, it is easy to see that despite claims of sweatshops bringing opportunities to
A sweatshop is a factory where employees work for longer hours with minimal wages provided and with a poor working condition. Having sweatshops in a country have advantages and disadvantages.
Sweatshops are a workplace where workers are subject to extreme exploitation, including the absence of a living wage, poor benefits, health and safety hazards, and random discipline (AMM 245, Kim). According to the department of labor, a sweatshop is a factory that violates two or more labor laws (http://www.dol.gov/). There is much controversy over the definition but sweatshops are manufacturers that don’t pay living wages, have low safety standards, don’t pay overtime, make employees work an abnormal amount of hours, have physical and mental abuse, among other issues. Sweatshops started in America during the industrialization period of the nineteenth period. People from Europe came to the United States in the attempt to create a better life for themselves and when they arrived most of them
From the minute Chinese citizens began to work for outside companies, they were exploited and taken advantage of. (Miller 2013) Once sweatshops were outlawed in North America and Europe in the mid 1900s due to their inhumane practices, foreigners were quick to flock to developing countries that did not have the same laws in place. Firms sought out manufacturers in poorer nations that could provide the highest quality product at the cheapest cost and Chinese migrants were easy prey for manufacturers who paid small wages and offered poor working conditions. Meagre social and economic conditions in developing China resulted in a great amount of people willing to accept any wage and management systems that neglected the workers. Multinational textile firms soon grew to rely on foreign subcontractors for their production needs. (Pugatch 1998) The system estranged corporations from the production process, and in turn resulted in the estrangement of the consumers from the production process, which encouraged and continues to encourage the ignorance that fuels the sweatshop system. The relationship between corporation and producer was only further separated as agents arranged subcontracting for companies, allowing these companies to have the goods they were selling produced in factories they had never seen. The subcontractors were met with severe corporate deadlines and targets in order to stay in business, leaving workers as the sacrificial
Sweatshops are a major issue in the world relating to human rights breaches, greed, consumerism, feminism issues and environmental ethics.
This assignment is going to mainly discuss the existing of sweatshops and the related ethical issues about it. Ethical theory will be applied in the study about the topic and personal reflection is also going to displayed in the assignment. An understanding of it may be not interesting but can be helpful to do research or run firms or organizations related in the future.
There are many views with the problem of utilizing sweatshops in developing economies. Many insist that utilizing sweatshops in developing economies composes exploitation. In certain circumstances, this may be true, but not all. It is an ongoing controversy of demolishing sweatshops and changing the laws of labor. Many anti-sweatshop activist supports the idea of demolishing sweatshops. Activist commonly focus on work conditions and low wages causing them to be ill – formed of the economy as a whole. Taking a deeper look into these developing countries, it is with out of doubt that these countries benefit from sweatshops. Sweatshops should not be demolished because the employees are benefited with income, their economy receives growth and
Ben Powell’s “In Defense of ‘Sweatshops’” article offers an uncommon point of view regarding the necessity of sweatshops. Powell knows that people know about sweatshops, but he offers another angle to the topic. The point he tries to get across is how sweatshops can actually be beneficial to the people in the third world countries, rather than them being a terrible thing. Throughout the article, he brought up some relatively good points, but not all he had to say was backed up with evidence. Therefore, Powell’s article was semi-effective.
Almost everyone knows sweatshops are not acceptable places to work or support. Sweatshops, per definition from the International Labor Organization are organizations that violate more than two labor laws (Venkidaslam). There are several arguments against sweatshops. First, is that these organizations exploit their workers. They provide them low wages and some pay below the minimum wage of the home nation. Moreover, these workers are forced to work more than 60 hours per week and are mandated to work overtime. In addition, workers are subjected to unsafe environments and sexual abuse. Finally, sweatshops are known for their child labor, where children below the legal working age are paid extremely small wages. Anyone who is against sweatshops will say, choosing to partner with these organizations are unethical.
The world is not a large and strange place anymore. The world is a place that is interconnected and intertwined. The world has become from a place that each country and their peoples are separate and isolated to a place that each country and their peoples are part of a global network. Thanks to globalization this is occurring. Globalization is the ‘international integration” or ‘de-bordering’ – “a number of highly disparate observations whose regular common denominator is the determination of a profound transformation of the traditional nation-state” (Von Bogdandy 2). Globalization is connecting different people from different cultures and backgrounds together. More and more corporations are entering new foreign markets to sell their
Abstract: Many countries, industries and people are becoming more affected by sweatshops in different ways because of they’re continuous increase in growth. Sweatshops benefit many developing countries as they provide opportunities of employment to the people living in poverty and benefit the community at large by creating an economic infrastructure that utilizes the country’s resources and increases their tax base. These institutions first came into existence in the early 1800’s and were referred to as dwelling houses, which were local factories that generally had the same idea of the sweatshop that we have in today’s society. There