Sweatshops Case Study
Sweatshops: Economical v. Ethical
As corporate social responsibility is being widely implemented and scrutinized among society, sweatshops have become a controversial topic. Many view sweatshops as an unethical practice of corporations. However, it may not be perceived the same to others. Globalized companies take advantage of the cheaper labor costs when issuing their factories in countries such as: Bangladesh, Malaysia, and Thailand. Though child labor, low worker pay and poor working conditions are part of these sweatshops, economically, they may be helping the country for their future. So what is the ethical and moral decision for a corporation who maintains factories in other countries?
There are two main arguments debated regarding …show more content…
In US dollars, the minimum wage of Bangladesh is $38.57 a month. “Sweatshops are attractive to people in places with few employment options, a lack of social services, and impoverished living conditions” (Radin & Calkins, p. 265). Poor working conditions are apparent in sweatshops around the world. Working standards set in the United States are not adhered to in other countries due to their lenient labor regulations. This provides competition among the countries and forces the developing countries to lower their wages to remain …show more content…
Nike was under a large amount of scrutiny after they were exploited for their poor factory conditions. Although their image was tainted from these practices, Nike has initiated many practices and policies to improve their conditions for their employees overseas. The article, “The Myth of the Ethical Shopper” suggests that these corporations are not aware of the specific factory their products are produced. Large corporations, such as Nike, Disney, and Wal-Mart, purchase their products through mega suppliers. These mega suppliers then sub contract to other factories who in turn sub contract to others. When a factory caught on fire in the Tazreen factory, logos of these corporations appear in the rubble but these companies were not aware this was where their garments were being produced. Therefore, if a large corporation were to ban their products from being produced in a specific factory or location, they could not directly enforce this as they are not directly involved in the subcontracting of their
As corporate social responsibility is being widely implemented and scrutinized among society, sweatshops have become a controversial topic. Many view sweatshops as an unethical practice of corporations. However, it may not be perceived the same to others. Globalized companies take advantage of the cheaper labor costs when issuing their factories in countries such as: Bangladesh, Malaysia, and Thailand. Though child labor, low worker pay and poor working conditions are part of these sweatshops, economically, they may be helping the country for their future. So what is the ethical and moral decision for a corporation who maintains factories in other countries?
There are two main arguments debated regarding …show more content…
In US dollars, the minimum wage of Bangladesh is $38.57 a month. “Sweatshops are attractive to people in places with few employment options, a lack of social services, and impoverished living conditions” (Radin & Calkins, p. 265). Poor working conditions are apparent in sweatshops around the world. Working standards set in the United States are not adhered to in other countries due to their lenient labor regulations. This provides competition among the countries and forces the developing countries to lower their wages to remain …show more content…
Nike was under a large amount of scrutiny after they were exploited for their poor factory conditions. Although their image was tainted from these practices, Nike has initiated many practices and policies to improve their conditions for their employees overseas. The article, “The Myth of the Ethical Shopper” suggests that these corporations are not aware of the specific factory their products are produced. Large corporations, such as Nike, Disney, and Wal-Mart, purchase their products through mega suppliers. These mega suppliers then sub contract to other factories who in turn sub contract to others. When a factory caught on fire in the Tazreen factory, logos of these corporations appear in the rubble but these companies were not aware this was where their garments were being produced. Therefore, if a large corporation were to ban their products from being produced in a specific factory or location, they could not directly enforce this as they are not directly involved in the subcontracting of their