The Ethical Implications of Sweatshops in the Global Economy

In the past years, there has been a rise in criticism of sweatshops


The existence of competitive markets has emphasized the need for sweatshops. On the hand, scholars are interested in assessing the negative impacts of sweatshops as more cases of exploitation have risen. Many deaths and injuries have been reported on sweatshop factories and this has raised a concern about its ethical and economic consequences. This paper reviews the ethics of sweatshops by reviewing their working conditions and the wages and well-being of workers.


Keywords: sweatshops, workers, conditions


Introduction


A sweatshop is a factory that has “unreasonably authoritative overseers, dangerous and unhealthy (both physically and psychologically) working conditions, and enforces long hours with low pay” (Wong, 2013). Sweatshops also employ child labor and are common in countries in the West. As this tradition continues in the developed countries, there is an increasing concern on the ethical examination of these practices. Most of the garments and footwear have sweatshops. Big companies such as Nike, Disney, Wal-Mart and Mango have employed in developing countries like Indonesia, China, Bangladesh and Taiwan. With the unregulated free trade, sweatshops are increasingly thriving in the global economy.


The advantages of Sweatshops


From a business viewpoint, sweatshops are lucrative and they provide capital for low-wage labor in the developing countries. Developed countries often outsource labor to poor countries with lower labor cost to improve profits. The developed country shares risk with the undeveloped country. Besides saving labor costs, business benefit from saving overhead costs such as renting of a manufacturing space. Establishing a manufacturing facility is expensive in developed countries and so it’s preferable to establish in a developing country. Further, outsourcing enables entrepreneurs to focus mainly


In Bangladesh, employees in sweatshops averagely earn $2 per day


This is more than hat 77% of the population earns (Bearak, 2001). Though the workers live in poverty, they are better off than most individuals. Bangladesh’s GDP is around $3,400 per capita which is low though the rate would be lower without the sweatshops. Sweatshops help the economy to grow by increasing sources of income. Through sweatshops, the economy of Bangladesh has grown by about 6% annually. It is a remarkable improvement for a developing country. This annual extra improvement can eventually lead to the country’s industrialization. Additionally, the cheap labor offered in sweatshops has reduced the price of products in the market. The big retailers can make their products cheaper and still earn profits.


The Negative effects of Sweatshops


Sweatshops operate in hazardous working conditions that pose health risks to workers. Big companies have caused global damage as they evade environmental regulations; a good example is Nike. The Nike Company closed down its factories in China due to a rise in worker wages and shifted to Indonesia where worker wages are cheaper. The company has caused environmental problems in the two countries namely air pollution and chemical waste. The pollution has increased the amount of greenhouse gas hence global warming.


The sweatshops are poorly ventilated and cause health problems for workers


Many workers are forced to live in small dorms and apartments. Other factories are overcrowded such that foot traffic guards have been hired to ensure people don’t crush in doorways. The safety of the employees is not a concern for the manufacturers and this causes many injuries and casualties. For instance, India's Rana Plaza collapsed and investigations revealed that the upper four floors were built illegally erected; the builders had no permit to construct the building. The inspectors evacuated everyone from the building when they noted grave structural cracks. In April 2013, the Rana factory in Bangladesh collapsed leaving 1,134 dead and over 2,500 injured. The day after the evacuation, the building collapsed and exposed the companies for ignoring the safety of its employees. Rana Plaza hosted manufactures such as Benetton, Mango and Children’s Plaza. In Dhaka Bangladesh, the Tazreen factory fire that broke out in November 2012 burned over 120 workers. The factory had no overhead sprinklers and the building was still under construction. The managers stopped those who attempted to live and blocked the exits giving them an assurance that it was only a drill.


The collapse and shutdown of factories negatively affect a company’s reputation


The shutdown leaves thousands of people unemployed. For those that continue to work at the same factories are left at risk of another tragedy.


The frustration and stress faced by women in sweatshops have devastating effects


The pressure has caused some pregnant women to lose their babies. Some are denied maternity and resigned upon making requests (Islam, 2013). Some of the children are too young to bear the pressure of working for long hours. In these tough working conditions, their chances of finding other jobs are limited. Since they are working all the time, workers can’t find time to attend interviews that can give them other jobs. With the strict working atmosphere, they can’t ask for permissions to address other things.


The rising concern of justice and human rights should be emphasized on these manufacturers with subhuman working conditions


They present a situation of the modern day slavery. Some of the sweatshops exploit workers in a manner that they are not allowed to leave the jobs at their will. Most of the workers are coerced into sweatshops through human-trafficking operations. They are deceived that they’ll get well-paying jobs and when they are threatened against leaving. The poor take up such jobs as their only means of survival. The workers encounter challenges of physical and sexual abuse, stress and harassment. Their labor hours are exaggerated with no bonus for overtime. They work as long as they can to attain the daily unrealistic quotas. For any slight mistake, they are punished. The Nike employees disclosed that they fear being punished for using restrooms during working hours. Investigations


Sweatshop workers are harassed for not meeting expectations and targets


The workers are at risk of losing their jobs if they tell any outsider about their ill-treatment. The people facing the oppression are mainly women and children. Children from the ages of 5 to 14 are forced to work in sweatshops and women between 15 and 28 form most of the workforce (Powell & Zwolinski, 2012). When inspectors visit the factories, workers are forced to lie over their work conditions and paltry wages.


Sweatshop salaries stagnate the poverty rate and increase suffering among the poor


There is a big contrast between the CEO salaries and employee’s salaries in sweatshops. The managers continue to be wealthy from the sweat of the poor. Nike paid its workers $1.60 in 2012; this is too little for sustenance and savings. After their expenditure on necessities, employees are not left with any amount to save which gives them no hope of a better future. Moreover, the sweatshops do not provide any benefits for the employees. The National Labor committee reported that a woman is paid 24 cents for a sing NBA jersey while the market selling price is $140; this justifies the unjust systems created by these corporations. Human beings are not profit commodities. The corporations earn much as evidenced by their expensive advertisements; they should pay their workers decent wages. Nike budgeted for $678 million for advertisement in 2007, which is enough to pay all their workers. Laborers deserve fair wages and have rights to own private property. The workers also have a right to form labor organizations that support their well-being.


With no savings, the workers cannot plan for future needs and enhance their dignity


This can be compared as an act of killing someone since one only has a little to feed and dress himself with no extra money for other needs. In case of sickness, the worker will not have enough for hospital bills.


Solutions and Alternatives to sweatshops


Corporations operate sweatshops for the mere benefit of increasing profits; not because they are running losses or they’re bankrupt but to get more and more profits. Workers’ salaries have decreased while the CEO salaries have drastically increased. If these corporations would put their priorities in check, then this problem can be solved. The CEO’s should first consider the well-being of the workers before accelerating their wages and spending more on advertising. A percentage of the advertising budget could be devoted to paying the employees. The CEO’s should devote to increase the employee’s wages in addition to benefits.


Instead of chasing lower labor costs, corporations can automate their production


Through technological progress, corporations can establish machines to manage the production instead of human labor. It is easier for the employees to operate the machines than doing the work manually. Automation produces more products since the machines are faster and can work continually as opposed to human beings. This is the best alternative to avoid exploitation and overworking of workers. The major step is to train the workers in operating the machines.


If companies would push their suppliers to construct better working conditions, then corporations would be forced to do so


Companies have a social responsibility of improving the value of workers. They need to speak to the suppliers and reinforce their words with actions. Companies to should defend labor law and force the suppliers to improve their working conditions or else their products will not be bought. The government should establish strict measures to maintain labor laws and prevent the exploitation of workers. It should pass a legislation to protect workers from abuse. A protection agency that randomly inspects the factories is necessary. The government should also enforce auditing practices that monitor factory conditions. Further, the contracts between companies and suppliers should contain details of the production such as the working time of workers and the daily target of orders. Basically, this makes the retailers follow the law thus they’ll provide better wages, safer conditions, more bearable working hours and end child labor.


The workers should be given an option to legal action against oppressive employers


Most of these workers operate in fear of being fired in case they report anything wrong against their employers. If they could be allowed to report employers that abuse them or fire them for disclosing to the inspectors what they are going through, then the employers would create better working conditions.


Eliminating purchasing practices that lower wages and encourage abuse will make sweatshops unnecessary


Encouraging the purchase of high-quality items instead of multiple cheap items would eliminate the need for sweatshops. If we as the consumers stand up to purchase products made outside the sweatshop environment, then these sops would cease to exist.

References


Powell, B., & Zwolinski, M. (2012). The ethical and economic case against sweatshop labor: A critical assessment. Journal of business ethics, 107(4), 449-472.


Wong, A. (2013). Two Faces of Economic Development: The Ethical Controversy Surrounding US-Related Sweatshops in Developing Asian Countries. Global Ethics Network. National University of Singapore, 1.


Bearak, B. (2001). Lives held cheap in Bangladesh sweatshops. New York Times, 15.


Islam, T. (2013). Women Suffer Most in Garment Sweatshops in Bangladesh. See link http://cawhk. tripod. com/9904/9904art05. htm.

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