Cheap Wages for the Workers - Essay Example

Details: Cheap wages for the workers Over the years, American companies have diversified their work andventured to other markets such as the underdeveloped countries. Due to the companies venturing in underdeveloped countries, the workers are getting low wages compared to the workers in the developed countries working in the same companies. The wages these workers are paid can barely sustain them and their families. These companies think they are doing the people a favor because they provide employment in the countries. As the organizations try to increase their profit margins, the workers tend to bear this burden. In some countries, the children are forced to leave school and join the job market to help in providing for the family. The children get paid very low wages because they are not part of the working class and, therefore, cannot do anything about it. These companies tend to flourish because they can increase their profit margins through the low wages. Most businesses that venture in the LDCs do not follow the business ethics that protect the workers from low wages and harsh working conditions. Business ethics refers to values and norms that help to govern the businesses and ensure smooth running of the organization. The ethics also regulate how employees relate with each other in the business environment. This paper is going to analyze where the low wages are ethical, or the companies are doing the workers a favor. American companies venturing into underdeveloped countries is a good thing because they help in speeding up the rate of economy development. As said by Aylward (1998) “In the developing Asian countries, the trend in private venture investment also remained firmly upwards, though the volume of new funds declined in 1995 due to a bumper year in 1994” (p. 5). This affirms the fact that the American industries have helped to boost the economy of these countries. Although, this is a good thing they tend to take advantage of the workers. Some tend to take advantage of the workers. Some of the work done for free in the foreign territories is compensated in America. Others tend to employ child labor to minimize the production cost that is not ethical. The children tend to receive very low wages due to the undersized governance and the low government regulation. Although the companies are helping by providing employment, they should be able to pay the employees and workers the required amount of wages. This violates the work ethics where the employers are expected to pay the workers according to the work they do. Workers in the underdeveloped countries, work for long hours and receive low wages. As written by Brenkert, George, and Beauchamp (2010) “An employer engaging in manufacturing or marketing in a foreign culture cannot simply assume that workers should be governed by the same salary standards grounds for dismissal, work standard, requirements of company loyalty, and promotional standards as those prevalent back home” (p. 10). Brenkert et al. (2010) points out the need of the employees to put in consideration the employment policies in the respective countries. Most of these industries tend to ignore this fact and exploit the workers. Some companies do not have a health cover for the employees which every company should provide for the employees. According to the work ethics, it is unethical for employers to increase their profit margin at the expense of the workers. The companies tend to see this in a good light because they have provided employment for these people who were previously unemployed. The aim of providing employment to the people is to improve their living standards not make them slaves. Some of the workers can barely buy food for their families despite the fact that they have a job. The companies should be able to pay the workers adequately for them to sustain their lives. These companies that enter the foreign territories employ children in their factories. This is unethical because children are not supposed to be working in factories. Some of these countries lack laws that regulate such actions. The children are forced to work under harsh conditions that sometimes lead to medical conditions. These children are forced to work because their parents can barely afford to keep the family bills. The companies prefer to employ the children because of the cheap labor they offer. The children cannot complain to anyone because they should not be employed in the first place. It is unethical for the companies to employ underage children. They do this to increase their profit margins which are not right. Paying the workers, low wages is unethical; as written by Rejda (2012) “Misclassification also makes it possible for unethical employers to exploit vulnerable workers, including low-wage workers and undocumented immigrants who are not familiar with the laws that apply to employment relationships, including labor laws that protect workers” (p. 278). This makes the workers less productive. For any company to do well in the competitive business world, they need to work as a team with the workers. Industries need to pay their workers adequately so as to increase their morale. When the employees are well paid, they tend to have a positive attitude towards the companies they work for which in turn is reflected in their work. When the workers perform well the output of the company is greatly increased. Instead of increase their profit margins by reducing the wages for the workers, they should increase their employee’s morale. Clearly as emphasized by Abdurahman (2013) “The ethical alternative would be to pay the workers well and provide them with proper company perks” (p. 33). Although, it is unethical to pay the workers low wages, the companies look at it in a positive way in that they provide employment. According to them it is better to have the little pay compared to not having the pay at all. Previously, the workers had to carry out errands so as to make ends meet. With the American companies venturing in the underdeveloped countries, have helped to reduce the rate of unemployment. The workers can at least provide food for the family as compared to before the emergence of the industries. The workers can pay their bills and take children to school. These companies are doing the countries a favor because they help to fasten the rate of development in the countries. The industries have to pay revenue to the respective countries they are located. They also increase the rate of industrialization which enables the countries to trade in the world market. A great improvement in the economy of respective countries has been observed since the emergence of American industries in the LDCs. Most of the developing countries have been put in the global map through these industries. For example, the Asian countries had been able to compete in the global market for the production of goods when the American industries ventured in their markets. Many underdeveloped countries have benefited from the companies, for example, their infrastructures have improved to help in the transportation of the final products. The residents of the respective countries gain from this. The social amenities have also improved due to the advancement in technology. The people can get better services as compared to before the emergence of these industries. The countries have also been able to reduce the dependence level because of the jobs offered by the companies. The rate of dependency is directly related to the rate of unemployment. When the rate of unemployment is high the dependency ratio tends to rise. American industries venturing into the underdeveloped countries, has helped to reduce the dependency ratio in the respective countries. These industries get cheap labor from the citizens of the countries. Although, the wages the workers get are low they can sustain their lives. This reduces the dependence of the people. As said by Beamish (2013) “A number of government programs have been established to assist in setting up joint ventures in the LDCs for example Canada, CIDA activities have included the publication of a guide on joint venture, and setting up of a cooperation programs to assist financially in the production of mutually profit business” (p. 2). This shows that Canadian government is for the idea for these companies to venture in the LDCs. Most of the times the developed countries bear the burden of sustaining the underdeveloped countries through, grants, donations and national Aid. In conclusion, the venturing of the companies in the underdeveloped countries has had its advantages. It has helped to reduce the level of unemployment and improve on industrialization. The citizens can provide for their families and to lead better lives. However, the companies are unethical because they are under paying the employees. According to the work ethics, the employees are supposed to be paid wages that are equal to the work they do. The industries also go against the ethics of employing underage children in their companies. They expose the children to horrendous working conditions that are unethical. It is also unethical for industries to increase their profit margins at the expense of others. Although, the companies are offering the people help, they should do it with good motives. Most companies venture in the underdeveloped countries so as to get cheap labor and maximize their profits through offering low wages. The same companies pay higher wages for their workers in the developed countries for the same amount of work done by these people. They go against the work ethics of equality for all employees. Employers are expected to offer the same wages for people doing the same amount of workload. In the developed countries, there are policies that protect them from overexploitation and underpayments. However, in the underdeveloped countries these policies are not clearly stated which gives the companies a leeway to over-exploit these workers and offer low wages. Works cited Abdurahman, Ziyaad. Gain Friends, Lead People, Be a Hero. S.l.: Kima Global Publishers,So, 2013. Print. Aylward, Anthony H. Trends in Capital Finance in Developing Countries. Washington, DC: World Bank, 1998. Print. Beamish, Paul. Multinational Joint Ventures in Developing Countries (RLE International Business). Routledge, 2013. Brenkert, George G, and Tom L. Beauchamp. The Oxford Handbook of Business Ethics. Oxford: Oxford University Press, 2010. Print. Rejda, George E. Social insurance and economic security. ME Sharpe, 2012. Read More