Is it immoral for US Corporations to use cheap overseas Labor?

Topics: Sweatshop, Economic development, Economics Pages: 4 (965 words) Published: October 31, 2014

Is it immoral for US Corporations to use cheap overseas Labor?


Cheap overseas labor sourcing is a procurement strategy in which company sources materials from countries with lower labor and production costs in order to cut operating expenses. In this contemporary business world, using cheap labor is one of the most contentious issues as it is readily available in developing nations. A number of US corporations have embarked on this practice with the aim of maximizing profits, which increases shareholder satisfaction and guarantees the success of the corporation. Though using cheap overseas labor has become quite common for many US corporations, the practice has resulted in several questions regarding whether it is immoral or not with respect to the impact the practice has on the United States and the third world countries. This does not revolve around the process of using cheap labor; rather, it involves around the ethical issues surrounding the process. YES: Business week points out that using cheap overseas labor is immoral, because many US corporations have been guilty of negligence in monitoring and controlling the quality of working conditions in their overseas workshop operations. The result is continued abuse and exploitations of workers by US firms. NO: Daniel Griswold argues that sweatshops are ethical because sweatshops improve economy by raising living standards and lead to better utilization of global resources. He further points out that anti-sweatshop legislations are unwise and will only hurt people they are trying to help. Sweatshops Abuse

Opponents of sweatshops argue that they are exploitative and inhumane because of unsafe and unfavorable working conditions, exhaustive workloads, excessively long work hours, below-subsistence level wages and physical and mental abuse. Several US corporations like Walmart, Nike and others have failed to follow labor codes of conduct and human...
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