Sweatshop Ethical Issues
Leadership Ethics
Introduction
When a business becomes a multinational organization through outsourcing to third world countries, it has the moral responsibility of assessing the impact to any potential country and its people and ensuring its standards, policies, and practices are clearly defined in order to avoid violating human rights and ridicule. This will prevent future damages as a result of having to correct unethical behavior in business practices. There are a number of businesses who have been criticized for participating in sweatshop activities and it has been a costly endeavor to reverse. The ethical dilemma associated with sweatshops is that of human rights. Businesses who take advantage of people who live in counties that are economically poor are in violation of basic morality. Sweatshop conditions, such as the mental and physical abuse associated with long hours and inadequate wages, are a violation of human rights (Radin & Calkins, 2006). Multinational corporations, such as Nike, have experienced the damages of unethical behavior associated with sweatshops (Business Insider, 2013). However, correcting the unethical behavior is not impossible, it will prevent costly ridicule, and it is the right thing to do.
The Ethical Issue …show more content…
In the DPU case study, issue two identifies unethical practices in one of its outsourced manufacturing plants (Schoology, 2016).
The first step for addressing this issue is to research the facts regarding these practices (Schoology, 2016). This might even warrant traveling to the plant or sending an assessment team to get a firsthand look and gather factual information. Once the information has been gathered, it must be addressed with the organization's stakeholder. A meeting with the CEO and Directors to address the situation, the negative impact to the overall organization, and the impact of corrective action should take place. Additionally, one or more solutions should be
recommended.
Corrective Action Upon confirming the facts regarding the labor conditions, the CEO should direct standards and policies which provide criteria and controls for labor practices, such as maximum hours worked, minimum wages paid, and perhaps even minimum age requirements. The overall cost of increasing the small wages earned by those working in third world countries is minimal compared to the cost of damage control from ridicule and losses of being associated with sweatshops. Moreover, a small increase might have a huge impact on a family's ability to survive in a third world country. Furthermore, the hypocrisy of expecting more for less for business gain is morally unjust and can result in unwanted negative attention from the media (Kennel, 1996).
Conclusion
It is in everyone's best interest to for multinational organizations to define policies and standards which address labor practices in third world countries before establishing any manufacturing plants. These policies and standards should also include a means to monitor how well these policies and standards are followed in order to identify any future need for corrective action. Ethical business practices, standards, and policies should always be in place and followed. Businesses must regulate sweatshop labor practices, provide reasonable pay increases when necessary, and control the number of hours an employee is allowed to work (Coakley & Kates, 2013). This will avoid exploitation and coercive behavior which is detrimental to employees (Coakley & Kates, 2013). Good leaders will be proactive in preventing unethical practices and be aggressive in correcting unethical behavior through meaningful standards and policies.
Introduction
When a business becomes a multinational organization through outsourcing to third world countries, it has the moral responsibility of assessing the impact to any potential country and its people and ensuring its standards, policies, and practices are clearly defined in order to avoid violating human rights and ridicule. This will prevent future damages as a result of having to correct unethical behavior in business practices. There are a number of businesses who have been criticized for participating in sweatshop activities and it has been a costly endeavor to reverse. The ethical dilemma associated with sweatshops is that of human rights. Businesses who take advantage of people who live in counties that are economically poor are in violation of basic morality. Sweatshop conditions, such as the mental and physical abuse associated with long hours and inadequate wages, are a violation of human rights (Radin & Calkins, 2006). Multinational corporations, such as Nike, have experienced the damages of unethical behavior associated with sweatshops (Business Insider, 2013). However, correcting the unethical behavior is not impossible, it will prevent costly ridicule, and it is the right thing to do.
The Ethical Issue …show more content…
In the DPU case study, issue two identifies unethical practices in one of its outsourced manufacturing plants (Schoology, 2016).
The first step for addressing this issue is to research the facts regarding these practices (Schoology, 2016). This might even warrant traveling to the plant or sending an assessment team to get a firsthand look and gather factual information. Once the information has been gathered, it must be addressed with the organization's stakeholder. A meeting with the CEO and Directors to address the situation, the negative impact to the overall organization, and the impact of corrective action should take place. Additionally, one or more solutions should be
recommended.
Corrective Action Upon confirming the facts regarding the labor conditions, the CEO should direct standards and policies which provide criteria and controls for labor practices, such as maximum hours worked, minimum wages paid, and perhaps even minimum age requirements. The overall cost of increasing the small wages earned by those working in third world countries is minimal compared to the cost of damage control from ridicule and losses of being associated with sweatshops. Moreover, a small increase might have a huge impact on a family's ability to survive in a third world country. Furthermore, the hypocrisy of expecting more for less for business gain is morally unjust and can result in unwanted negative attention from the media (Kennel, 1996).
Conclusion
It is in everyone's best interest to for multinational organizations to define policies and standards which address labor practices in third world countries before establishing any manufacturing plants. These policies and standards should also include a means to monitor how well these policies and standards are followed in order to identify any future need for corrective action. Ethical business practices, standards, and policies should always be in place and followed. Businesses must regulate sweatshop labor practices, provide reasonable pay increases when necessary, and control the number of hours an employee is allowed to work (Coakley & Kates, 2013). This will avoid exploitation and coercive behavior which is detrimental to employees (Coakley & Kates, 2013). Good leaders will be proactive in preventing unethical practices and be aggressive in correcting unethical behavior through meaningful standards and policies.