Kantianism Approach to Child Labor - Essay Example

The utilitarianism theory suggests that MNCs should continue using the ethical standards in their home countries in the host market. The International Labor Organization (ILO) 2007 statistics “There are about 218 million working children globally and accounting for about 20% of India’s GDP” (Gupta et.al, 291). The annual cost of ending child labor includes the cost of providing income lost by the children and providing education. On the other hand, the benefit of eliminating child labor is more than seven times that cost due to gains from increased human capital, fewer deaths from accidents, and improved health (Gupta et.al, 300). Therefore, child labor is a huge loss to the economy at large.

The Kantianism principle would suggest all MNCs apply strict child labor standards in all nations across the globe to eliminate the overexploitation of children (Gupta et.al, 301). The method used for acquiring child labor such as kidnapping and buying children are harmful to the children. It results in health issues, compromising working and living conditions, underpayment, and denies adults an employment opportunity (Gupta et.al, 291).

Businesses with higher ethical standards have a chance for long-term operations even though their income may not be very high. Consumers in host overseas countries expect MNCs to apply higher ethical standards than local companies (Gupta et.al, 301).