Ethical Decision-Making and Corporate Social Responsibility

To: US Trade Policy Makers

From: US Human Right Activist

Date: November 24, 2018

Subject:  Request to make policy to improve the condition of sweatshop overseas.

Ethical Decision inbuilt trust hence ensures responsibility, care and fairness to the individual. This process eliminates all the possibility of the misconduct that can happen to an individual or group. It is said that it reduces any conflict that can occur in future by educating and making peace resolution. The government makes an ethical decision in keeping the trust of its citizen and people related to them. For sweatshops overseas, the government is not fully accountable for its conditions, but it can pass some law which can help them to regulate the companies who are involved in it.

Here the government has to take some ethical decision to improve the quality of work conditions in third world countries or supplier countries. A company like Wal-Mart, Benetton, Mango, Amazon they outsource their apparels and goods from countries with the low economy, they make huge profits as they are high-end brands and have high demands in developed nations.

US government should ensure that the company who have sweatshops in third world countries should have such legal policies which provide the minimum wages and better working condition for the labors there. Mainly the company outsources the goods by giving work to third world supplier ensuring the necessary parameters are met. But due to high profit ends these outsourced company doesn’t provide basic facilities to its workers. When an accident occurs, the name of US Company gets highlighted and, hence the goodwill and reputation get spoil (Kates, 2018).

We all are aware of the incidents that happen in Bangladesh’s sweatshops in the past. Around  600 deaths have been reported from last six years due to fire, and about 1100 people died due to building collapsed which had many sweatshops. Many sweatshops have deplorable working conditions and poor wages. The many US and European countries have their sweatshops in Bangladesh and other economically backward countries due to cheap labor. Such incidents help in the notice, and human rights groups work to ensure the better compensation to people who suffer loss. The company denies any benefit because they have outsourced the labor through the third party to the company who got a contract and the government of that nation should ensure the safety of their people (Rouge, 2016).

This issue becomes the big debate as who is responsible for the poor working condition of the sweatshop. The answer lies on the fact that company to make a huge profit as the cost of labor in the US is high they get their job done from outside. They don’t share the policy of workers as they have on in the US nor they ensure the working condition of the people working for them overseas (Kates, 2018).

The Need for US Government Intervention

Human rights activist all over the world protested against the US brands whose sweatshops were responsible for the poor working condition of labors in low economic countries. This has resulted in the downfall of consumers so less demand for production, thus resulting in unemployment in such countries. This is no solution to the problem (Culiberg, Barbara, and Domen Bajde. 2013).

US government should ensure that company who have sweatshops overseas should have or share some moral responsibilities with the outsource partner there. They should make such amendments where the company has to describe the model or structure of its manufacturing unit and measures taken for the protection and safety of its labor (Butcher, Charity. 2012.)

The government should ensure that any company which is founded guilty should not be given any further contract for business. They should also have a trade policy with countries where US Company can have their manufacturing unit on a profit basis or as foreign investment. This will improve the relationship with the third world nation and have a huge profit margin. If such policy gets implemented, then the US will beat China for being no. 1 exporter of brand apparels. This gives the opportunity to the US to recreate its position in the textile industry (Agustia, Nahartyo and Sudaryati, 2018).

Trade law should be made strict so that any company in future doesn’t escape from the consequences. When the company found guilty of heavy misconduct fine or banned should be imposed on them. US multinational companies should focus on the profit margins or low cost but also skilled labor and new target market. Developing countries which are more open to trade policies and foreign investment are more likely to have high wages and high maintained skill labors with the proper working condition. Research should be conducted about the place where the manufacturing unit will be outsourced before giving them the business so that they can keep a check on the quality of the working condition (Bressán and Arcos, 2016).

The openness of trade with the US in developing nation will bring an economic boom in their country. The poverty line will go up as more and more people will get the skill to get the job. The US multinational with local companies should train people and make them aware of the proper working condition. With the improvement of the working condition of the sweatshop the productivity will also go up. The middleman or third party will exploit the labor less hence the quality of life will be improved. The entire sweatshop should follow the code of conduct as sketched by the law like no to child labor or forced labor (Lydia. 2015).

Regulations for Sweatshops Overseas

The regular external audit should be done to check and monitor if the company or not are maintaining the standard. Who are their compliances and what facilities they are providing to them? List of suppliers should be provided for the audit purpose, and if found guilty of it then next order should not be given until and unless it is completely resolved.

Audit of the supplier should be by working condition like they should have clean drinking water and proper sanitation at work. There should be an emergency exit if an accident occurs. Firefighter equipment should be present to avoid any causality. Hourly wages and working hour should also be in their consideration (Powell, Benjamin, and Zwolinski. 2011)

Ethical Decision will help the US trade to grow and build a relationship with other countries. It will resolve many issues without any violent interference. The people of the supplier country will be benefitted ad they have more job opportunities in their country and have better-skilled labor and lifestyle (Culiberg and Bajde, 2013).  

US government male the law but it has to be followed by all multinational companies. They should understand the social and moral responsibility of the society and should work for the improvement of it. All the company should form a standardized audit process under which all the supply chain has to undergo to pas the check. Companies should come together and invest in improving and understand the supply chain and continues to work together in improving the working condition (Dill 2018.)

Only Government is not responsible for improving the working condition of the sweatshops overseas but the multinational too. When these companies come under the scrutiny of the human rights group or UNICEF the company incurs a loss which directly or indirectly affects the economy of the country. With more foreign investment the responsibilities of multinational companies increase to regulate or check from time to time their suppliers and their effect on their company. It should to fully aware of the suppliers and countries with which companies are dealing with so that they can plan or change their course of action. US government is not fully accountable for the condition of the sweatshops overseas but with the help of trade law will be able to regulate it to some extent and can boost or revive its past economy war (Rixom and Mishra, 2014).

References

Agustia, D, E Nahartyo, and E Sudaryati. 2018. “The Mediating Effect Of Ethical Judgment On The Relationship Between Ethical Orientation And Ethical Decision”. Kne Social Sciences3 (10). doi:10.18502/kss.v3i10.3368.

Bressán, Jerónimo Montero, and Ayelén Arcos. 2016. “How Do Migrant Workers Respond To Labour Abuses In “Local Sweatshops”?”. Antipode 49 (2): 437-454. doi:10.1111/anti.12250.

Butcher, Charity. 2012. “Teaching Foreign Policy Decision-Making Processes Using Role-Playing Simulations: The Case Of US-Iranian Relations“. International Studies Perspectives 13 (2): 176-194. doi:10.1111/j.1528-3585.2012.00457.x.

Culiberg, Barbara, and Domen Bajde. 2013. “Consumer Recycling: An Ethical Decision-Making Process”. Journal Of Consumer Behaviour 12 (6): 449-459. doi:10.1002/cb.1446.

Dill, David D. 2018. “Correction To Enhancing Academic Quality And Collegial Control: Insights From US Policy On The Ethical Conduct Of Human Subjects’ Research”. Higher Education Policy. doi:10.1057/s41307-018-0097-5.

Kapiriri, Lydia. 2015. “Ethical Challenges In Clinical Decision-Making In The Era Of New Technologies: Experiences From Low-Income Countries“. Health Policy And Technology 4 (3): 256-262. doi:10.1016/j.hlpt.2015.04.001.

Kates, Michael. 2018. “Sweatshops, Exploitation, And The Case For A Fair Wage”. Journal Of Political Philosophy. doi:10.1111/jopp.12155.

Powell, Benjamin, and Matt Zwolinski. 2011. “The Ethical And Economic Case Against Sweatshop Labor: A Critical Assessment”. Journal Of Business Ethics 107 (4): 449-472. doi:10.1007/s10551-011-1058-8.

Rixom, Jessica, and Himanshu Mishra. 2014. “Ethical Ends: Effect Of Abstract Mindsets In Ethical Decisions For The Greater Social Good”. Organizational Behavior And Human Decision Processes 124 (2): 110-121. doi:10.1016/j.obhdp.2014.02.001.

Rouge, Jean-François. 2016. “Sweet Sweatshops – A Reflexion About The Impact Of Sweatshops On Countries’ Competitiveness”. ECONOMICS 4 (1): 7-36. doi:10.1515/eoik-2015-0023.