Discuss the ethical pros and cons of doing business with a sweatshop in a developing nation.
Subject: Management Ethics
Assignment Instructions (Please read and follow all Instructions. All instructions must be followed completely)
What is the Posting About: (This is the question(s) that the professor had asked us to write about. This information is being provided as an understanding of when working on the response to the student?s posting):
Read chapter 12 in the textbook and also the article that you choose before answering the questions.
Answer all of the following questions. Please note that all questions need to be answered in one essay
1. How does the article you picked relate to our weekly reading material (Chapter 12). Make sure to tell your instructor what the article was about and how the article relates to two of the key terms in our text.
2. What are the four types of social responsibilities that businesses have? From a historical perspective, where have businesses failed with these in the past?
3. Discuss the ethical pros and cons of doing business with a sweatshop in a developing nation. Use key terms from our text to support your thoughts.
Posting of Student Responding To:
For this week?s forum I chose the article titled: U.S. judge signals likely approval of VW diesel buyback settlement. The Volkswagen Company used illegal software to essentially trick the U.S. emissions test. According to Shepardson (2016) ?a federal judge in San Francisco said he was strongly inclined to approve a record setting $10 billion proposed buyback and compensation offer from VW for the 475,000 owners of the diesel vehicles? (para, 1). The overall unethical responsibilities of the VW Company is pretty clear. The legal responsibility of the company was clearly violated when they had this software to trick the emissions test.
The four types of social responsibilities as stated by Collins (2011) are economic, legal, ethical, and philanthropic responsibilities (page, 375). I think that some of the ways that business have failed the social responsibilities is when it comes to the taxes. It is understandable that a company needs to make a profit, or they would not be in business very long, but when the profit comes from tax avoidance and sometimes tax evasion, that is where a business reaches the unethical and illegal side. On one hand the business does what it needs to and finds a loophole to put their money in offshore accounts to make a tax avoidance, but on the other hand, that could lead to tax evasion, which will cost the company in the end.
One of the pros of doing business with a sweatshop is the cost savings to the company. As stated by Collins (2011) ?a sweatshop is a business facility that employs workers at low wages, for long hours, and in unhealthy working conditions? (page, 380). The company saves money because they are able to pay the employees much less money than they would have to in the United States because they would violate the U.S labor laws. One of the cons to this is the workers are not held to the same working conditions as they would be in the U.S. When a company can save money by employing cheaper workers, but the work conditions the workers are in is unhealthy, is this ethical? I do not think that this is an ethical way of doing business, making a significant profit off of the cheap labor of a sweat shop.