In recent years, labor imitation becomes both an opportunity and threat for the developed and developing countries. Developed states have intentionally created migration flows attracting skilled labor and professional employees from other countries. Such problems as brain drain, import of cheap labor, and illegal immigration cause public and legal debates about moral and ethical issues of this process. Business ethics raises the question of how these processes affect the behavior of individuals and the values of society and concerns important ethical questions about the role of staff in the management process and the state economy. Much of the discussion on these issues centered on different approaches to business ethics and is reflected in policies inclined towards social responsibility. In practice, business ethics is aimed to meet high moral standards and obligations.
Brain drain from developing countries to the western world is caused by the unstable economic situation, low level of social support, and low wages in the Third World countries. “Two major economic consequences could result from these demographic shifts. First, wages will rise in areas where people do not want to live or work” (The “Brain Drain” 2004). The notion of Brain Drain as a ‘challenge’ to the nation-state has two possible meanings. It may be taken conservatively as a challenge to be incorporated within the existing framework of nation-states, if only in the absence of an alternative political organizing principle (Watts 26). Or it may be taken progressively as a challenge that points to a fundamental transformation of nation-states. In spite of opportunities and threats created by brain drain, international codes of behavior are impotent because they would help to set policies and principles that guide this behavior (Watts 45). In this case, an international code of ethics would guide the behavior of all parties involved in this process and protect immigrants and the home labor force. By appointing an ethics committee, holding regular meetings, checking and enforcing violations to the ethics code, and reviewing and updating the code, it can be seen that an enterprise is committed to the principle. The international community does not interfere in “brain drain” problems and immigration; it will lead to chaos and worsen the economic situation in the European countries. The main problems caused by uncontrolled brain drain are that:
goods produced locally would price out of global markets, and businesses would move to areas where more skilled workers live. Second, and more seriously, a lack of specialized human capital in these metropolitan areas would hinder economic growth and competitiveness (The ‘Brain Drain’ 43).
Taking into account the main consequences of brain drain, it is possible to say that the international code of ethics becomes a crucial part of guarding and controlling the decision-making process. This International Code should show that ethical principles applied by the company are concerned with truth and justice and include aspects which society expects, e.g., social responsibilities and corporate behavior. The western and Third World Countries cannot stop the “brain drain,” but they can control and manage this process and diminish its negative consequences for both illegal immigrants and the host country (Kohl, p. 20).
The international code of behavior is crucial because the “brain drain” creates numerous problems for western countries and their native citizens. It is a known fact that the import of cheap labor from developing countries causes unemployment among laborers from developed countries. For instance, in the USA, illegal immigration becomes a social problem that affects both native citizens and newcomers. At the beginning of the 21st century, America is filled with millions of illegal immigrants coming from all over the world: the Post-Soviet Union countries and Asia, Africa, and South America. From a social point of view, illegal immigration creates a class conflict between immigrants and native citizens limited in social security and employment opportunities. Today, workers with no licit status compose a large sector of the labor force (Reimers, p. 3).
The state creates this pliable workforce by legally restricting labor immigration but failing to enforce those restrictions. The attempts of the American government to legitimate illegal immigrants resulted in a social problem for Americans threatening their employment opportunities and the labor market. According to D. Jacobe: “the current wage stagnation is [caused by] the influx of a huge number of illegal immigrants who violate the U.S” (Jacobe 2006). The main problem is that the illegal immigrant’s labor policies have not been changed over time resulted in a social problem for millions of Americans. Following critics, illegal immigration follows from social strife over labor market shortages or an overabundance of immigrants. On the other hand, many native citizens are deprived of their right to obtain a well-paid job and earn for living. Most of them rely on social security and social funding as the main source of income. The movement against illegal immigration is aimed to protect the social rights of low classes and legal immigrants (Reimers, p. 37).
For the industries, it is not fair to import ‘cheap labor’ because it causes an economic and social imbalance in their countries. Illegal immigrants bring economic and social disbalance into the economic system. Some critics (Reimers 34) claim that illegal immigration is marked by a high level of uncertainty. Refugee policy and the “non-policy” of ineffective enforcement against unsanctioned immigration seem careful, even cynically crafted. The labor recruitment system that depends on unsanctioned workers might have high costs for specific communities and the nation as a whole, yet it benefits employers in specific industries and geographical locations. This analysis challenges the argument that “push factors” in immigrant-sending countries, including economic underdevelopment, overpopulation, and political instability, have been the primary constraints on governmental efforts to restrict immigration (Reimers, p. 76). “it’s true that the cheapest possible labor working under the worst possible conditions benefits the people who consume and the owners of capital” (Jacobe 2006). For the core of the society (in Europe and America), illegal immigration means misbalances in supply and demand; it “worsens the distribution of resources” and creates social tension. For the industries, it is unfair and unethical to import cheap labor from developing countries because they deprive low classes and racial minorities of a chance to compete in the labor market. Instance, in the healthcare industry, “it is potentially damaging to the effective delivery of health services in the source country, where it constitutes a huge financial loss and could have a negative impact on the economy” (Ahmad, 2007).
Illegal immigrants have a negative impact on the amount spent on personal services and increased the capital available to employ people in the division of labor. These facts are important because many native citizens are excluded from the equal distribution of wealth and socio-economic resources because of the illegal but cheap labor force. For those left behind in the country, the remoteness of the young adults results in additional problems in the care of both the very young and the aged, which has traditionally devolved on the youngest unmarried daughters of the family, thus reinforcing their dependence on the family unit and leading to very marked differences in the experience of education between men and women (Ahmad 2007). Pros of strict ethical codes include strict control of borders and coordinated efforts of different nations to secure and protect the population from unlawful and uncontrolled immigration flows (Watts,p. 49).
In terms of business ethics and morality, the facts mentioned above suggest that illegal immigrants have no ‘moral right’ to demonstrate or strike in the host country. It is true that many illegal immigrants are discriminated against due to the prejudices and preconceptions of the people with whom they have to deal. But they come to the host country looking for better days and employment opportunities and deprive native citizens of an opportunity to earn a living (Kohl, p. 20). Also, they can freely return to their native lands dissatisfied with the conditions and social policies of the host county. Illegal immigrants have no ‘moral right’ to demonstrate or strike because they are the main target of poverty. Most of these families are limited by their social position deprived of a chance of social mobility (Watts, p. 39).
Many illegal immigrants want to receive higher pay and social security provisions, medical services, and education opportunities. The main problem is they deprive native citizens of a chance to receive this social help and medical insurance, free education opportunities, and social support. Poverty is one of the main problems faced by racial minorities and blue-collar workers. The main problem is that stable work and full employment cannot help millions of native citizens to escape poverty and food shortage (Kohl, p. 20). The central proposition is that government intervention has changed behavior in all of the social classes and thus brought about disruption in society. The values of the work ethic and the free market system have been forgotten, as society has become more interested in short-term benefits. The low earnings of the poor reflect a potential for greater earning capacity. Unemployment is more likely to be seen as a social problem than is poverty. At no time during the years examined has poverty been seen as one of the crucial problems facing Europe by more than 6 percent of the population (Watts, p. 87).
In sum, the need for strict international codes and ethical norms is based on social, economic, and security threats affecting millions of native citizens. Public opinion favoring immigration restrictions has grown in recent years, both scope and intensity. Following Ahmd (2007): “formulation and adoption of an international code require the active participation and cooperation of all the major players.” That view dictates the adoption of the controversial and somewhat radical new approach to illegal immigration policy embodied in the employer-sanctions provisions. The nature of the perceived policy problem largely dictates the proposed solutions. The perception of the illegal alien flow shares by those pushing for the adoption of strict regulations is that the illegal aliens constituted the most severe aspect of the immigration influx and that the nation first has to seize control of its borders by controlling the illegal alien flow before any other immigration reforms are possible. Business ethics becomes the main source of control which helps protect native citizens and manage illegal immigration. Business ethics and international codes of behavior allow countries to regulate labor relations and employment practices in their countries and abroad.
Works Cited
- Ahmad, O. B. Brain drain: the flight of human capital. 2007. Web.
- The “Brain Drain” Monthly Labor Review 127 2004: 43.
- Jacobe, D. The Real Impact of Illegal Immigration. Web.
- Kohl, D. Farming’s Brain Drain-Where It Will Be, What You Can Do. ABA Banking Journal 94 2002: 20.
- Reimers, D.M. Unwelcome Strangers: American Identity and the Turn against Immigration. Columbia University Press, 1998.
- Watts, J. R. Immigration Policy and the Challenge of Globalization: Unions and Employers in Unlikely Alliance. Cornell University Press, 2002.