Module 2 Case: Sweatshops and Ethics

Running head: MODULE 2 CASE
Module 2 Case: Sweatshops and Ethics
Student’s Name
Institution
Date

MODULE 2 CASE 2
Introduction
Nike was once accused of running sweatshops in developing countries. There was a lot of
public backlash that forced Nike to redefine its international operation strategy and improve the
working conditions. However, the question as to whether Western-based companies should
standardize the labor rights and laws in their branches located within developing nations still
remain controversial. Whereas it is a fair trade for companies like Nike to standardize the labor
rules and conditions, there are other factors that renders it unethical. The paper will explore this
question in details and give possible response based on evidences from the past.
Feasibility of labor rights in developing nations
The company should not advocate for labor rights, minimum wage and unionization in
developing countries because the conditions are different in developing countries than developed
countries and even if the goal is to improve trade, the effects may be negligible. The intentions of
this movement are noble: people opposed to sweatshops are rightly outraged by the terrible
working conditions. However, those who express their protest by refusing to produce goods
produced in this way make a mistake or do not think about what would otherwise have
happened. We believe that if people refuse to buy products of sweatshops, then these enterprises
will not stand the competition and will close, and people will find a better job. But this is not so.
A sweatshop factory is a good option for citizens of developing countries. The alternatives are
usually even worse - exhausting and low-paid labor in the field, garbage collection or
unemployment. In 1993, Iowa Senator Tom Harkin introduced Congress to prevent child labor,
which would make it illegal to import goods into the United States from countries where child
labor is used. At that time, in Bangladesh, a lot of children were engaged in the sweatshops
production of finished clothes. The factories, fearing that the bill would be passed, immediately

MODULE 2 CASE 3
fired 50 thousand child workers. According to the US Department of Labor, these children did
not go to school and did not find a better place: “It is believed that most of them found work in
other sewing factories, in smaller, unregistered subcontracting sewing workshops, or in other
industries.” Considering, that transnational corporations usually pay much more than local
owners of sweatshops, most likely, the lives of these children have become worse. Indeed:
UNICEF found out that many of the dismissed underage seamstresses took desperate measures
for a piece of bread, for example, engaged in prostitution (Mintz, 2012).
Expectations for Western-based companies in developing nations
The company should just advice their foreign contractors to improve the working
conditions of their employees. Often workers work 16 hours 6-7 days a week. Sometimes they
are forbidden to take a break for lunch or go to the toilet. Air conditioners are rare there, so it can
be very hot in the shops. Health and safety care are largely neglected. It happens that employers
also pester their employees. This means that they should advice their contractors to reduce
weekly working houses, allow workers to have breaks, adopt occupational health and safety
standards and avoid pestering employees (Bryars and Stanberry, 2018).
Expectations of consumers
Consumers just have to support the companies because even if they boycott, the
consequences would not be good. Even though the working conditions of sweatshops are not
good, boycotting their products would mean that poor employees may have to be laid off. This is
evidenced in the Bangladesh case.
Feasibility of universal workplace standards