Q1. Some economists and proponents of classical liberalism contend that not only do sweatshops constitute an inevitable and essential feature of economic development but they also benefit the world’s poor. Do you agree with the above statement? Support your arguments with relevant ethical theories/examples.
Q2. Are MNCs morally obliged to improve the working conditions and wages in their subcontractors’ factories? Why or why not?
2 comments:
Q1. I do not agree to the statement. Following the theories Kant, Kant argued that there is essentially one such fundamental ethical principle; respect the dignity of each individual human being. To fully respect a person, one must actively treat his or her humanity as an end, and not merely as a means to an end.
The Kantian basis for this claim is well established. Respecting people is an obligation that holds for every person quo person, whether in the personal realm or in the marketplace. Respecting people requires honouring their humanity, which is to say it requires treating them as ends in themselves. In my opinion, the employers need to respect and protect the basis rights of their employees. The employers can raise wages and provide safe and healthy working conditions for their employees. Besides that, Hartman and Arnold also argue that there are persuasive theoretical and empirical reasons for rejecting each of the arguments for the existence and continued use of sweatshops.
Q2. MNCs are morally obliged to improve the working conditions and wages in their subcontractor’s factories. One argument provided by Hartman and Arnold is that multinational corporations (MNCs) have an ethical obligation to respect the rights of their employees and contract workers. Because employees of MNC subcontractor’s factories earn less than the employee of MNC- owned factories and work under more adverse conditions.
Besides that, contract factory owners may not have the resources to improve working conditions and wages without assistant from the MNC. So MNC managers are well positioned to help ensure that the employees of its contractors are respected, they can draw upon substantial economic resources, management expertise and technical knowledge to assist their business partners in creating a respectful work environment.
Besides that, employers who improve the working conditions and wages are seen as bestowing a gift on workers, who reciprocate with greater productivity and greater loyalty. Increased productivity and employee loyalty alone may offset the cost spent to respect workers’ basic rights, but these costs maybe passed on to consumers. Because consumers prefer for the product produced under conditions in which the rights workers are respected.
Q3. Yes, I think this will work. “Code of conduct’’ refers to the codification of a firm’s values as they are interpreted and applied to the workplace in which the firm’s goods are proud. These codes are created voluntarily by MNCs and are not based on the laws of any one nation but are designed to help managers and suppliers embrace and implement a care set of values regarding the treatment of works.
Deborah Leipziger explains that the codes can support a firm in the short-term (during crisis management), mid-term (perhaps prevent a crisis firm arising) and long-term (enhance stakeholder value). These effective codes can raise awareness about corporate responsibility within the company; help companies to set strategies and objectives, asset companies avoid risk, foster dialogue and partnership between companies and key stakeholders and enhance utility and identity among divergent companies.
Besides that, Hartman and Arnold also argue that MNCs have good strategic reasons for embracing voluntary codes of conduct. Researchers have also found that in emerging markets, cost savings, productivity improved, revenue growth and access to markets were the most important business benefits of ‘’sustainability activities’’ and the role of code of conduct in perpetuating these activities was found to be significant.
Similarly, a landmark study found that firms that firms that were ranked highest in terms of their records on a variety of social issues (including charitable contributions, community out each programs, environmental performance, advancement of women and promotion of minorities) which often find their foundation in codes of conduct, had greater financial performances as well, financial performance was better in terms of operating income - growth, sales to assets ratio, sales growth, return on equity, earning to asset growth, return on investment, return on assets and assets growth.
From group,
Chee kwan
Kerishnan
Grace
Halima
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