Ethical Issues in Australian Fashion: Workers' Rights and Wages

This essay examines ethical issues within the Australian fashion industry, focusing on worker's rights, wages, and environmental impact. The essay analyzes a report highlighting that many brands are not transparent about their supply chains, leading to poor working conditions and inadequate wages. It discusses the importance of fair wages, worker empowerment, and the environmental impact of the industry. The author reflects on their decision-making regarding these ethical issues, emphasizing the importance of worker rights, fair wages, and healthy workplace conditions. The essay also applies Kantian and utilitarian ethical principles to the business context, concluding that ethical practices are essential for the industry's sustainability and the well-being of its workers. The essay references articles and reports to support its claims and provides examples of companies addressing these issues.

Ethical Issues
2019
Student’s Name
5/17/2019

Ethical Issues 1
Introduction
The transparency in worker’s wages and empowerment is still a major concern for the
Australian fashion industry. The fashion brands in Australia are focusing on improving their
rating by communicating transparent information to the customers regarding the production
of the clothes but the living wage, workers’ rights, and environmental impact is still a
business ethical issue at Australian workplace. The essay will reflect upon the own decision
making on the ethical issue and the philosophy in concern to the ethical issues at the
workplace (Pearson, 2017).
Summary of ethical issues
From the article published by Baptist World Aid, it is analyzed that 38% of the
fashion brands in Australia have improved their rating by changing the cultures and the
practices and communicating more transparency to the customers. According to the survey,
34 companies were given D+ or F grading because the companies are not providing any
information to the public regarding exploiting of the people in the supply chain and grading
based upon the human rights and welfare is still disappointing (Spring, 2019).
The industries were not focussing upon the working conditions and the health and
welfare of the employees. The employees were not being paid well and were not able to
support their families. The ethical fashion report surveyed 130 companies with 480 brands
and realized that there were only a few companies that provide living wages to the workers
under which 50 % of the companies have designed policies and only 5% pays the living wage
(Spring, 2019).

Ethical Issues 2
In spite of setting living wages for the workers the Australian fashion industries are
not providing adequate wages to its workers and cutting the perks and reducing the overtime
payments. This leads to dissatisfaction among the workforce as they are not able to afford a
dignified lifestyle and support their families. Fairtrade considers workers empowerment as a
crucial step in developing wage improvement program. It has designed a robust set of rules
that comply with the labor laws and the rights of the workers. It also focuses on empowering
the workers so that they have the ability to negotiate for their remunerations (Shaw, 2016).
It is observed from the article that in Australia the rights of the workers and women
empowerment is still an ethical issue faced by the company which in turn decreases the
grading of the companies. The progress on the wages and workers empowerment is still
complex in Australia (Spring, 2019).
Another ethical issue analyzed from the article was that the brands were not focusing
on the environmental impact and 8% of the gas emissions were realized from the apparel and
footwear industry. The average grading received by the companies is C+ because of the
chemicals and the pollutants released by these industries. They were not being socially
responsible towards the environments and are considered as a critical ethical business issue
(Spring, 2019).
Lisa Gorman of the fashion brand Gorman highlighted that getting a low grading
hampers the brand image of the company. It was considered as a personal kind of harrowing
which leaves the drastic impact on the organizations. The article addressed that the
environment must be considered as the highest priority and the companies must focus on the
reduction of the harmful gas emission and conservation of the natural resources. It should be
considered as a mere responsibility to contribute to the environment (Spring, 2019).

Ethical Issues 3
Own decision making in relation to the ethical issue
In consideration of my view, the workers are the asset of the company and the labor
rights are the legal and the human rights related to labor relations between employer and
workers. The workers have the right to organize and have the right to collective bargaining to
improve the working conditions of the employees. The workers have the right to have
minimum wages and negotiate for their remunerations. It also has the right to improved
workplace conditions. The workers must be provided with a healthy workplace and focus on
maintaining the dignity and lifestyle of the workers so that they can support their families
(Mcgregor, 2017).
In accordance with my views, all the workers must receive equal rights and improved
working conditions to maintain the dignity and lifestyle of the workers. The workers must
receive minimal wages and must be empowered so the workers can negotiate for their
remunerations. The organizations must train and educate the employees to empower them.
The workers must be provided with overtime pays and the company must not cut the perks of
the workers. They have the right to receive a living wage and support the family. The
conditions of the workplace must be soothing for the workers and the organizations must
consider health and welfare as the main priority of the company (Kolk, 2016).
The employer must provide fair wages and must focus on reducing the health risk.
According to regulations, 8 hours of working is acceptable the organization must not include
12 hours working. It must focus on providing humane working hours under which the
workers are provided with time for the lunch breaks, occasional breaks and use of washrooms
(Blackburn, 2016).
For instance, Rio Tinto bridges the gap by providing extra benefits and creating a
workplace environment for the employees. They provide flexible working options and

Ethical Issues 4
practical benefits such as quality childcare. Such benefits help in providing work-life balance
to the employees. It has developed talk to Peggy whistleblowing program under which the
suppliers, contractors, employees have given the opportunity to anonymously report against
the behavior of the individuals. It includes violation issues and human and workers right. It
has also developed the Iron Ore business peer support program under which the workers can
share the troubles in another way. The leaders are trained to understand the mental risk and
provide a tool that helps the employees to share their troubles. It focuses on employee
engagement through surveys and interaction and creating an inclusive workplace where the
rights of the diverse workforce are protected (Rio Tinto, 2019).
Ethical Moral philosophies
The ethical moral philosophies guide the right and the wrong conduct. It describes the
ways that the organization must follow to inculcate good habits and also specifies the
consequences of wrong conduct. It covers the responsibilities that the organizations and
humans must follow to conduct right behavior (Crane & Matten, 2016).
In the above article, the Kantian theory of work must be applied which states that the
organization must provide meaningful work to its employees. The definition of meaningful
work under Kantian theory includes the work that is freely entered into. It includes the work
that allows the worker to use rational capabilities and provides autonomy and independence.
It supports the moral development of employees and focuses on providing sufficient wages
for physical behavior and is not paternalistic (Bowie, 2018).
It also includes utilitarian approach under which it evaluates the net cost and benefit
to the stakeholders. It states that each entity must be equally entailed while making the
judgments and focuses on maximizing benefits and reducing harms (Baron, Gurcay & Luce,
2018).

Ethical Issues 5
Conclusion
From the above article, it is critical to note that the wages and the worker's
empowerment are still a major concern at the Australia fashion industry. It is analyzed that
the companies do not share the information regarding the working conditions of the
employees and does not show concern to the environmental issues. The companies must
focus on providing a fair wage and empowering the employees. The employees must receive
a living wage for support to their families and living a dignified lifestyle. The theory of
Kantian and utilitarian principles must be applied to conducting the business ethically.

Ethical Issues 6
References
Baron, J., Gurcay, B., & Luce, M. F. (2018). Correlations of trait and state emotions with
utilitarian moral judgements. Cognition and Emotion, 32(1), 116-129.
Blackburn, S. (2016). A Fair Day’s Wage for a Fair Day’s Work?: Sweated Labour and the
Origins of Minimum Wage Legislation in Britain. London: Routledge.
Bowie, N. E. (2018). Dignity and Meaningful Work. In The Oxford Handbook of Meaningful
Work (pp. 36-50).
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
23-34.
Mcgregor, M. (2017). Labour Law Rules! Siber Ink.
Pearson, R. (2017). Business ethics as communication ethics: Public relations practice and
the idea of dialogue. In Public relations theory (pp. 111-131).London: Routledge.
Rio Tinto. (2019) Workers' rights and wellbeing. Retrieved from:
https://www.riotinto.com/ourcommitment/workers-rights-and-wellbeing-24283.aspx
Shaw, W. H. (2016). Business ethics: A textbook with cases. Nelson Education.
Spring, A. (2019) Australian fashion brands must improve on workers' rights, report says.
Retrieved from: https://www.theguardian.com/australia-news/2019/apr/11/australian-
fashion-brands-must-improve-on-workers-rights-report-says