The Sweatshop: Business Ethical Problem - Essay Example

Sweatshops Sweatshop is a term used to describe a deplorable work environment, particularly one which is run by high-end brands. It equates to slavery in the modern times where workers have to work long hours in poor conditions without breaks. Sweatshops are also characterized by under-aged workers and scanty wages. The sweatshop issue which drew in Nike is also very well-documented. Nearly every high-end apparel brand operates its sweatshops in various countries around the world, especially in places where labor costs are low. This helps companies to save up on production costs and allows them to have a greater profit margin. Sweatshops are mainly concentrated around regions like South Asia, Southeast Asia, Latin America, and so on. Most employees of sweatshops are denied sufficient salaries and are, in most cases, bound to the messy quarters that are cramped with machines and other equipments. These quarters also serve as homes for these workers where they sleep and eat. Because of their poor conditions, sweatshops impinge on the fundamental liberties of labors and are a serious violation of human rights which is why they present an ethical issue. They provide convenient and cheap sources of labor for high-end clothing and apparel manufacturers, which is why they continue to exist in the present century although strict laws regarding labor exist. After Nike, Zara has also been caught in a commotion regarding sweatshops where it had to pay a fine for operating sweatshops in Brazil (Sum of Us, n.pag.). However, the fine does not seem to have inhibited the capitalistic endeavors of Zara. The sweatshop issue is not a new one and their existence can be traced back to the early 20th century when women and children were the most common forced laborers (Rosen, 1). The Universal Declaration of Human Rights developed by the United Nations clearly mentions the rights of workers to healthy working environments. Thus, in the light of the UDHR, companies must pursue a policy of good practices providing a workable environment with appropriate wage rates and stipulated working hours. With bonded labor, various sweatshop workers are forced to work in bad environments which include long working hours and no breaks in between. To top this, workers are paid very little money to live on and mostly live in the same quarter they work in. So sweatshops characterize poor working places with overworked and underpaid labors. So, the companies are able to acquire very cheap labor out of sweatshops. The main ethical concern regarding sweatshops is its prevalence among high-end fashion brands like Zara and Nike where the products are premium quality and highly priced. However, the irony is that the same companies have only meager wages to pay for its laborers who do not even enjoy sufficient salaries. Campaigns against such capitalistic practices continue to work against companies operating sweatshops in numerous corners of the world. Although giant companies are accountable for their practices, sweatshops continue to be operated in different areas. As different campaigns highlight such malpractices by large organizations and companies, the negative attention hurts the reputation and business of these companies. The case of Zara’s operational sweatshops in Brazil in 2011 cost it heavy fine and a dirty mark at its reputation. However, Zara was quick to respond to the issue with its revised labor practices in Brazil which seems to have rendered a positive development. After the new labor practices were adopted in the country, Brazil has seen no new complaints regarding poor working conditions and the like. Hence, the issue of sweatshops and bad working environment has experienced a halt in Brazil after the implementation of new labor policies which seem to have been successfully imposed. However, in other countries around the world including those in Latin America such as Argentina, there are still sweatshops that are operational. In fact, more of Zara’s sweatshops have been discovered which raises several questions (Sum of Us, n.pag.). The most common advice is the acceptance of Brazil-like labor practices into other states so that labor complaints against sweatshop conditions mitigate. Most sweatshops display a similar story where whole families including women and children work in cramped quarters where they live as well. These quarters are mainly houses located over small areas of lands with rooms filled with machines where the families work and sleep. Also, these quarters have poor sanitary conditions with many health risks. The same conditions prevail in other sweatshops in Southeast Asia, South Asia, and Latin America where labors have to work for more than 16 hours without toilet breaks, which is utterly inhumane. Incidentally, most companies that operate sweatshops are also the ones that sell expensive high-end clothes such as Zara and Nike. These companies can safely be described as giant clothing retaining brands that are capitalistic in their economic structure where profit dominates their motivations. The reason why sweatshops operate is because of most of the clothing brands like Zara prefer to hire contracted manufacturers from countries in Southeast Asia, Latin America, and South Asia. This is because these countries normally have low wage rates and cheap labor can be obtained very easily. Acquiring cheap labor automatically increases their margin of profit which is primarily why capitalistic companies operate to maximize their profit. From a socio-economic perspective, the presence of sweatshops decreases global wage rates because a great supply of cheap labor exists in the developing countries. Socially, this is morally wrong and this exploits the labor for profit. However, many individuals may simply see this a normal trade where the two trading parties willfully agree on the terms of trade and the rates. That is to say that these individuals choose to work in such environment although not all laborers may be authoritative enough to choose the fate (sweatshops) for themselves. Advocates that propose the end of sweatshops also propose the adoption of innovative policies that improve factory conditions, combat child labor, implement global sourcing, and standardize regular audits and so on (Hartman, Arnold, and Wokutch, 198-343). Economically speaking, sweatshops are an artifact of competitive markets where a search for cheap labor spurs companies to operate sweatshops in developing countries to maximize their profit. The competition for low priced labor drives the force which generates sweatshops. Sweatshops also symbolize corporate abuse especially over women and children. With globalization as a popular trend, more and more production is taking place beyond the borders of the headquarter country. This means that a great number of items are being produced overseas and that most likely these factories function in poor conditions. Industrialization in many countries has given their economies a boom however with this development one can notice the dark side of economic growth – sweatshops. Laws differ from country to country and not all countries may have a standardized policy for labor practice. A liveable wage is a right of every labor that works to create a product that is sold for hundreds of dollars outside. Understanding sweatshops as a product of competitive markets calls for an effort to eliminate the realities that harbor the creation of sweatshops. The conditions that create sweatshops are embedded in the system that drives the economy. Macro-economic principles clearly identify successful trades as those in which both parties agree over a price hence implying agreement to a situation where both are better off. This however is fundamentally unfair due to involvement of a moral dilemma that affects laborers. Works Cited Hartman, Laura Pincus, Arnold, Denis Gordon, and Wokutch, Richard E. Rising Above Sweatshops. Westport, CT: Greenwood Publishing Group, 2003. Print. Rosen, Ellen Israel. Making Sweatshops. Berkeley, CA: University of California Press, 2002. Print. “Fighting for People Over Profits.” Sum of Us. Web. 2014 Accessed 5th August 2014 http://action.sumofus.org/a/zara-sweatshops/ Read More