Factory’s supply and workers exploitation in developing countries is the concern of everyone including leaders in those countries. Employers should ensure that the factory is safe for everyone who works within it and even for those who purchase goods from it. Safety of a factory will consequently result to increased profit since losses which might occur in unsafe factory conditions are minimised. Workers exploitation should be minimise since they are not exploited they tend to work better which results to production of quality product thus boosting marketability of products in that company.
Executives of toy company in Japan/United State and else where should take necessary steps to ensure that the safety and general welfare of employees in developing countries is enhanced. This is because so many employees in developing countries have lost their lives as a result of unsafe working condition. For example in handcraft factory five broke out which claimed so many lives of its employees (Brian, Kirby, p 420. Similarly in another factory five broke out and so many employees lost their lives since the emergency door was closed which signified poor working conditions of employees since this could be avoided if their was an exit.
Therefore, as a remedy to all these problems, executives should ensure that the safety and welfare of their workers is considered at all the time (Mares, p 23). This can consequently boost the profit of the factory since by providing good working conditions; workers can be motivated to produce quality products which will enhance marketability of the company’s produce. Welfare of employee in regard to their wages and working hours should be followed strictly. The relative time that employees spend in working should be reciprocated with enough wages to boost their desire to work (Adjibolosoo, p 81). Therefore, executives can do incredible work if they insist their factory’s should ensure that employee’s safety and welfare is enhanced which will also help the factory to realise the benefits of taking employees seriously.
Low wages paid in developing countries in carrying out manufacturing operations have consequently affected the number of manufacturing jobs in high waged triad countries. This is because when the employer pays fewer wages to workers who are working for along time, the outcome of their work will yield profit which will be more than that of companies which pay high wages to their employees since they end up sharing the relative profit which will be available for the company. Most of the workers in developing countries are being exploited since the work that they do is not reciprocated with the wages that they are paid. Therefore to avoid exploitation workers are supposed to be subjected to good working conditions and appropriate working hours with enough pay.
Higher wages experienced in toy industries consequently led to higher wages in United State. This has adversely affected the toy industry since its marketability has gone down and United State have started taking their orders for the toys form those developing countries where the wages of employees are low and therefore they produce low priced toys. High wages of employees make them to set high prices than those who pay low wages since their total expenditures are low and therefore they will set their prices lower than those who pay high wages. High wages of employee can lead to loss of market when they are others who are producing the same product with low wages cost (Brown, p 281).
Working conditions of employees should be incorporated in international traded agreement since they will enable that companies are all operating at the same standards. This will help in setting standard wages for employees and it can ease the problem of employee exploitation since through the standards set they will realise their rights and ensure that they are met accordingly. When these standards are set competition for market can be eased since standard prices will be set and therefore demand will only lie on the quality of product that each country produces.
Companies are not doing enough to ensure that human right standards are upheld for workers in home and also in outside countries since the employers want to spend minimum expenditure in production of their produce in order to have high profit (Zeckhauser, 1991, p 34). When human right standards for employees are followed the company can not realise much benefit since this means that high wages will be paid, there will be no long working hours and also the safety of employees is maintained which means that the company will incur a lot of production cost and they will not experience the required benefit.
Therefore, according to the case study, comparison experience high profit of their sales as a result of low wages to employees which means that their profits are adversely affected by the way they treat their employees and the conditions they are exposed to. Unlike this, companies can still experience high profit by granting employees the opportunity to express their rights through sets of standards internationally.
Reference
Zeckhauser, (1991), Strategy and Choice. MTI Press: Sedgwick, pg 34.
Brian M., Kirby S., (2004), Organizational Improvement and Accountability. Rands Corporation: United State, pg 42.
Brown J., (1997), Workers Control in Latin America. UNC Press: Carolina, pg 281.
Adjibolosoo K., (1998), Global Development the Human Factory Way. Green Wood: Westport, pg 81.
Mares R., (2004), Business and Human Rights: Compilation of Documents. Martinius Nijoff: United Kingdom.