Utilizing Sweatshop Labor is Unethical


UtilizingSweatshop Labor is Unethical

UtilizingSweatshop Labor is Unethical

Byutilizing sweatshop labor, the clothing company engaged in unethicallabor practices. The use of such labor makes the company a sweatshopin labor laws. A sweatshop is a company or a factory that violatestwo or more labor laws through poor working conditions andunreasonably unfair compensation. Therefore, sweatshop labor is theengagement of labor that is poorly remunerated, uses child labor,poorly managed working conditions and denial of basic benefits toworkers. The use of sweatshop labor by any company is consideredunlawful in some countries therefore it is monitored by labordepartments.

Theuse of sweatshop labor is particularly unethical because the clothingcompany utilized it in order to achieve low pricing and low costs.This shows that the focus of the company was not the observation ofwork ethics, but profits and sales. The company particularlyimplemented the use of sweatshop as a way of gaining unfair advantagein the market through low pricing. By considering the low costs ofproducts and low pricing strategy, the company aimed at making moreprofits at the expense of the welfare of its workers. It is unethicalto consider profits or financial gain at the detriments of humanresources of an organization. Therefore, the use of sweatshop laboris unethical for organizations because it ignores the human aspectsof the organization.

Consumerdemand affects the business decisions of a company by dictating thepreferences of quality and price as well as the quantity to besupplied. The demand by consumers determines the price that thecompany should sell its products at. Therefore, companies will makeproduction decisions that seek to lead to the price preferred byconsumers. The same applies to the quality of the product supplied.Companies decide to engage in production methods and materials thatproduce the quality demanded by the consumers. At the same time,companies make production decisions to produce quantities that aredetermined by the market. The market demand is shaped by the demandof the consumers for the particular products at certain prices and inspecific time periods.

However,ethical perspectives guide the ethical decision making of differentcompanies. This is because companies consider the ethics of work andorganizational environment before basing major decisions entirely onconsumer demands. Labor ethical perspectives guide companies toconsider the plight of workers before making decisions on theirengagement with the company. In this case, the clothing company couldnot have used sweatshop labor if it had considered labor ethicalperspectives. Financial ethical perspectives guide the company tomake decisions involving pursuit for profits or market advantage atthe expense of compensation for human resources (Trevino &ampNelson, 2011). These perspectives guide the company to considerethics over other financial, strategic or market advantages thatcompanies seek to gain at any cost.

Companiesinfluence their ethical environment in their quest to adhere to theguidance of the ethical perspective. One of the ways of influence isthrough the role of the management in setting the right examples forthe people in the organizations. When the management practice ethicsand emphasize on ethical considerations, the rest of theorganizational members follow (Trevino &amp Nelson, 2011). Inaddition, companies influence ethical environment by settingorganizational codes of conduct that guide every decision makingprocess in the firm. Moreover, companies seek to adhere to theregulations of various stakeholders like government regulations,labor laws and professional ethics. This way companies influenceethical environments.


Esbenshade,J.L. (2009). Monitoring Sweatshops: Workers, Consumers, and theGlobal Apparel Industry. Philadelphia: Temple University Press

TrevinoL.K &amp Nelson K.A (2011). Managing Business Ethics: StraightTalk About How To Do It Right. Fifth Edition. John Wiley &ampSons, Inc