Chapter 8, Problem 1RA-P241

Summary Introduction

Introduction

The media informs us to a limited extent about harmful labor practices in other countries. For example, Nike was accused of using sweatshop labor to make shoes for a few dollars, while selling them for hundreds. This caused some people to avoid buying Nike products until they claimed that they increased pay for their workers. Another example is in the chocolate industry, as many people only buy chocolate that is labeled as from free trade companies that do not support child or slave labor.

Explanation of Solution

Answer and explanation

(This question requires a subjective response, and this is an example.)

The media does report on large companies that are accused of using harmful labor practices, but does not inform us about every instance. For example, Nike was accused of paying low wages in sweatshops making shoes that they would then sell for huge profits. Many people were outraged, and the company was forced to address the concern by increasing pay and shifting some production to areas with better working conditions. Another example comes from the chocolate industry. Many people choose to only buy chocolate that is labeled as having been produced in accordance with fair trade practices that oppose child and slave labor. This has caused more companies to evaluate their supply chain to identify possible problems like these.