BUS 216: Business Ethics
Dr. Scott Browne
November 9th, 2014
An Ethical Debate for Sweatshop Labor
Business ethics seeks to address issues that arise while doing business internationally. Not all states enforce ethical standards for business. Consequently, the global community regards the conditions of workers in certain states, particularly in the developing world, to be in direct violation of human rights. With the emergence of globalization, there are now low transaction and communication costs driven by advances in computer and telecommunication technologies; therefore, making the global market truly global. In the production of shoes, clothing and other commodity goods, business conducted internationally is now more …show more content…
A living wage is different from a minimum wage because it covers the costs of basic necessities to survive, which minimum wage does not cover. Both definitions agree that the working conditions within sweatshops should be improved; however, activists and other critics can often overlook the benefits of having a factory in these developing countries. In today’s highly globalized and competitive economy, top producers of shoes and clothing constantly search for ways to reduce their cost of production and maximize their profits. In order to do so, these multinational corporations place their factories in underdeveloped or developing countries like India and China where there are few legal protections for employees. These countries often disregard worker health and safety, and government taxation on foreign investment is minimal in order to attract business from multinational …show more content…
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