Ethical US Trade Policy: Enhancing Overseas Sweatshop Conditions

This report addresses the ethical responsibilities of the US government and multinational corporations in improving the working conditions of sweatshops overseas. It highlights the deplorable conditions and low wages in many third-world sweatshops contracted by US companies, emphasizing the need for stricter trade laws and ethical decision-making. The report suggests that the US government should implement policies that ensure minimum wages, better working conditions, and regular audits of supplier factories. It also proposes that companies found guilty of misconduct should face penalties, including bans from future contracts. The report further argues that increased trade openness and foreign investment in developing countries can lead to economic growth, improved labor skills, and better living standards. Ultimately, the report advocates for a collaborative approach between the US government, multinational companies, and local governments to uphold ethical standards and improve the lives of workers in sweatshops. Desklib offers a wide range of solved assignments and past papers for students.

P a g e | 1
Name:
Class:
Subject:
Date:

P a g e | 2
To: US Trade Policy Makers
From: US Human Right Activist
Date: November 24, 2018
Subject: Request to make policy to improve the condition of sweatshop overseas.
Ethical Decision inbuilt trust hence ensures responsibility, care and fairness to the individual.
This process eliminates all the possibility of the misconduct that can happen to an individual or
group. It is said that it reduces any conflict that can occur in future by educating and making
peace resolution. The government makes an ethical decision in keeping the trust of its citizen and
people related to them. For sweatshops overseas, the government is not fully accountable for its
conditions, but it can pass some law which can help them to regulate the companies who are
involved in it.
Here the government has to take some ethical decision to improve the quality of work conditions
in third world countries or supplier countries. A company like Wal-Mart, Benetton, Mango,
Amazon they outsource their apparels and goods from countries with the low economy, they
make huge profits as they are high-end brands and have high demands in developed nations.
US government should ensure that the company who have sweatshops in third world countries
should have such legal policies which provide the minimum wages and better working condition
for the labors there. Mainly the company outsources the goods by giving work to third world
supplier ensuring the necessary parameters are met. But due to high profit ends these outsourced
company doesn't provide basic facilities to its workers. When an accident occurs, the name of US
Company gets highlighted and, hence the goodwill and reputation get spoil (Kates, 2018).
We all are aware of the incidents that happen in Bangladesh's sweatshops in the past. Around
600 deaths have been reported from last six years due to fire, and about 1100 people died due to
building collapsed which had many sweatshops. Many sweatshops have deplorable working
conditions and poor wages. The many US and European countries have their sweatshops in

P a g e | 3
Bangladesh and other economically backward countries due to cheap labor. Such incidents help
in the notice, and human rights groups work to ensure the better compensation to people who
suffer loss. The company denies any benefit because they have outsourced the labor through the
third party to the company who got a contract and the government of that nation should ensure
the safety of their people (Rouge, 2016).
This issue becomes the big debate as who is responsible for the poor working condition of the
sweatshop. The answer lies on the fact that company to make a huge profit as the cost of labor in
the US is high they get their job done from outside. They don't share the policy of workers as
they have on in the US nor they ensure the working condition of the people working for them
overseas (Kates, 2018).
Human rights activist all over the world protested against the US brands whose sweatshops were
responsible for the poor working condition of labors in low economic countries. This has
resulted in the downfall of consumers so less demand for production, thus resulting in
unemployment in such countries. This is no solution to the problem (Culiberg, Barbara, and
Domen Bajde. 2013).
US government should ensure that company who have sweatshops overseas should have or share
some moral responsibilities with the outsource partner there. They should make such
amendments where the company has to describe the model or structure of its manufacturing unit
and measures taken for the protection and safety of its labor (Butcher, Charity. 2012.)
The government should ensure that any company which is founded guilty should not be given
any further contract for business. They should also have a trade policy with countries where US
Company can have their manufacturing unit on a profit basis or as foreign investment. This will
improve the relationship with the third world nation and have a huge profit margin. If such
policy gets implemented, then the US will beat China for being no. 1 exporter of brand apparels.
This gives the opportunity to the US to recreate its position in the textile industry (Agustia,
Nahartyo and Sudaryati, 2018).

P a g e | 4
Trade law should be made strict so that any company in future doesn’t escape from the
consequences. When the company found guilty of heavy misconduct fine or banned should be
imposed on them. US multinational companies should focus on the profit margins or low cost but
also skilled labor and new target market. Developing countries which are more open to trade
policies and foreign investment are more likely to have high wages and high maintained skill
labors with the proper working condition. Research should be conducted about the place where
the manufacturing unit will be outsourced before giving them the business so that they can keep
a check on the quality of the working condition (Bressán and Arcos, 2016).
The openness of trade with the US in developing nation will bring an economic boom in their
country. The poverty line will go up as more and more people will get the skill to get the job.
The US multinational with local companies should train people and make them aware of the
proper working condition. With the improvement of the working condition of the sweatshop the
productivity will also go up. The middleman or third party will exploit the labor less hence the
quality of life will be improved. The entire sweatshop should follow the code of conduct as
sketched by the law like no to child labor or forced labor (Lydia. 2015).
The regular external audit should be done to check and monitor if the company or not are
maintaining the standard. Who are their compliances and what facilities they are providing to
them? List of suppliers should be provided for the audit purpose, and if found guilty of it then
next order should not be given until and unless it is completely resolved.
Audit of the supplier should be by working condition like they should have clean drinking water
and proper sanitation at work. There should be an emergency exit if an accident occurs.
Firefighter equipment should be present to avoid any causality. Hourly wages and working hour
should also be in their consideration (Powell, Benjamin, and Zwolinski. 2011)
.
Ethical Decision will help the US trade to grow and build a relationship with other countries. It
will resolve many issues without any violent interference. The people of the supplier country will

P a g e | 5
be benefitted ad they have more job opportunities in their country and have better-skilled labor
and lifestyle (Culiberg and Bajde, 2013).
US government male the law but it has to be followed by all multinational companies. They
should understand the social and moral responsibility of the society and should work for the
improvement of it. All the company should form a standardized audit process under which all the
supply chain has to undergo to pas the check. Companies should come together and invest in
improving and understand the supply chain and continues to work together in improving the
working condition (Dill 2018.)
Only Government is not responsible for improving the working condition of the sweatshops
overseas but the multinational too. When these companies come under the scrutiny of the human
rights group or UNICEF the company incurs a loss which directly or indirectly affects the
economy of the country. With more foreign investment the responsibilities of multinational
companies increase to regulate or check from time to time their suppliers and their effect on their
company. It should to fully aware of the suppliers and countries with which companies are
dealing with so that they can plan or change their course of action. US government is not fully
accountable for the condition of the sweatshops overseas but with the help of trade law will be
able to regulate it to some extent and can boost or revive its past economy war (Rixom and
Mishra, 2014).

P a g e | 6
References
Agustia, D, E Nahartyo, and E Sudaryati. 2018. "The Mediating Effect Of Ethical Judgment On
The Relationship Between Ethical Orientation And Ethical Decision". Kne Social
Sciences3 (10). doi:10.18502/kss.v3i10.3368.
Bressán, Jerónimo Montero, and Ayelén Arcos. 2016. "How Do Migrant Workers Respond To
Labour Abuses In “Local Sweatshops”?". Antipode 49 (2): 437-454.
doi:10.1111/anti.12250.
Butcher, Charity. 2012. "Teaching Foreign Policy Decision-Making Processes Using Role-
Playing Simulations: The Case Of US-Iranian Relations". International Studies
Perspectives 13 (2): 176-194. doi:10.1111/j.1528-3585.2012.00457.x.
Culiberg, Barbara, and Domen Bajde. 2013. "Consumer Recycling: An Ethical Decision-Making
Process". Journal Of Consumer Behaviour 12 (6): 449-459. doi:10.1002/cb.1446.
Dill, David D. 2018. "Correction To Enhancing Academic Quality And Collegial Control:
Insights From US Policy On The Ethical Conduct Of Human Subjects' Research". Higher
Education Policy. doi:10.1057/s41307-018-0097-5.
Kapiriri, Lydia. 2015. "Ethical Challenges In Clinical Decision-Making In The Era Of New
Technologies: Experiences From Low-Income Countries". Health Policy And
Technology 4 (3): 256-262. doi:10.1016/j.hlpt.2015.04.001.
Kates, Michael. 2018. "Sweatshops, Exploitation, And The Case For A Fair Wage". Journal Of
Political Philosophy. doi:10.1111/jopp.12155.
Powell, Benjamin, and Matt Zwolinski. 2011. "The Ethical And Economic Case Against
Sweatshop Labor: A Critical Assessment". Journal Of Business Ethics 107 (4): 449-472.
doi:10.1007/s10551-011-1058-8.

P a g e | 7
Rixom, Jessica, and Himanshu Mishra. 2014. "Ethical Ends: Effect Of Abstract Mindsets In
Ethical Decisions For The Greater Social Good". Organizational Behavior And Human
Decision Processes 124 (2): 110-121. doi:10.1016/j.obhdp.2014.02.001.
Rouge, Jean-François. 2016. "Sweet Sweatshops - A Reflexion About The Impact Of
Sweatshops On Countries’ Competitiveness". ECONOMICS 4 (1): 7-36.
doi:10.1515/eoik-2015-0023.