Nowadays, many Western companies place their manufacturing facilities in foreign countries, which benefits both consumers at home and the workers who receive an opportunity to earn a living. Usually, the economies of the countries which offer cheap labor costs are considered to be in the developing stage, which means that they do not have certain institutions which are well-established in the West. Therefore, Western companies have a moral obligation to promote certain concepts such as a minimum wage and labor rights in the nations which do not view them as necessary. Many argue that the implementation of such concepts in the developing countries will lead to an increase in production costs. Yet, by thoroughly examining each situation and then developing appropriate strategies for the implementation of the Western labor practices, companies can achieve a reliable balance between profits and workers’ well-being. Thus, the Western companies, by choosing to pursue ethical practices, can improve their workers’ performance, eliminate the dangerous working conditions, and attract new clients who will be willing to encourage their behavior.
The circumstances of the current economic and political climate dictate certain rules of conduct to all companies worldwide, and ethics have become one of their primary subjects. It is expected that large businesses must possess a mission statement which would contain a clause outlining their determination to improving employee satisfaction in the countries hosting their plants (Byars & Stanberry, 2018). This goal can be fulfilled only through adhering to the practices which have proven effective, including promotion of labor rights, introduction of a minimum wage, and establishment of labor unions. Advocating and even lobbying for them is in the best interest of the Western companies because they directly affect the well-being of their workers. People who are certain about their future and clearly understand that they cannot be easily fired or stripped of their wages can deliver better results and work more efficiently. Moreover, it will reduce high employee turnover rates and help companies retain their most effective workers. Thus, openly supporting labor rights in the developing countries, can be useful not only for the workers, but also for the company.
Moreover, the Western companies have to be exemplary in their respect for the rights of the employees and promote ethical standards throughout all the stages of production of its goods and services. When dealing with foreign contractors, it must be stipulated in special clauses that these companies have to meet certain criteria concerning workers’ rights, which are adopted in the West. Some may call such requirements a display of capitalist imperialism and a disregard for traditions, customs, and norms of foreign cultures (Byars & Stanberry, 2018). These claims can be justified when the conditions for workers are acceptable, but when there are instances of deaths in the workplace, for example, suicides in Foxconn, Western companies should instantly react (Mintz, 2012). Certainly, such atrocious events are rare, but it is still a moral obligation for the Western businesses to make contractors comply with the ethical standards. After all, their right to act in this was is based on their duty to ensure that the workers can operate in a safe and secure environment.
Consumers have an equal moral responsibility and have to act as arbiters, encouraging businesses which maintain ethical practices by buying their products and punishing those which do not by avoiding their goods and services. Consumers have to watch closely how their favorite companies operate in foreign countries, whether they uphold proper standards concerning the conditions in the workplace, and whether they adhere to their mission statement. For example, Nike has a long-lasting problem with sweatshops in Honduras, where the employees have to take their unfinished work home and spend many hours at the factory (St. Clair, 2018). Such situations must directly affect consumers’ behavior who might choose to distance themselves from the company which cannot control its contractors, especially if this issue has been in existence for several years.
Thus, establishing a universal approach to working conditions and employee protections is the right and ethical path to follow for all companies. Businesses can ensure that the rights of workers are respected by adopting a framework of basic guidelines concerning labor, which would be obligatory for all their departments and contractors to comply with. This will inevitably require additional resources, but the benefits of the implementation of such an approach are much greater. Having applied universal standards, the companies will eradicate the problem of deplorable conditions in their manufacturing facilities and set themselves as an example of a socially responsible and ethical business. Moreover, it will also help attract new clients, especially those who are concerned about the sustainability of production of goods. Media coverage is another important factor, newspapers and TV-channels will publish materials praising the company’s adoption of the universal workplace standards, which will consequently have a positive impact on their brand’s image.
Companies which espouse ethical practices concerning labor in foreign countries have an advantageous position and can derive much benefit from upgrading the working conditions of their employees. Labor rights, a minimum wage, and unionization are proven means of improving workers’ well-being and advancing their efficiency, thus, Western companies should advocate for them when operating in foreign nations. Businesses have an obligation to ensure that their employees are provided with a safe working environment, which justifies their right to require their contractors to adhere to the Western protocols. Consumers also have to be vigilant about the Western companies’ practices abroad and be able to avoid those which neglect basic labor standards. Adopting universal workplace requirements can help companies eliminate conditions detrimental to workers’ health and become exemplary in the area of sustainable labor practices.
References
Byars, S., & Stanberry, K. (2018). Business ethics. OpenStax.
Mintz, S. (2012).Social responsibilities of a U.S. company doing business abroad. Ethics Sage. Web.
St. Clair, J. (2018). Nike’s bad air. CounterPunch. Web.