Is it ethical to manufacture as cheap as possible?

Résumé du document

The domestic environment in which firms constantly compete helps shape their ability to grapple with international markets. To tussle through this phase of vigorous competition, firms in the domestic area must continually strive to reduce costs, boost product quality, increase productivity, and develop innovative products. Firms that have been assessed in this manner are often equipped with skills necessary to succeed internationally. Further, many of the investments made by these firms in order succeed in the domestic era, can be strategized and a new policy can be adopted. For example heavy investments undertaken by the firm in departments such as the R&D, the quality control, and the financial department could be transferred or outsourced to international markets at favorably low costs. In this file we will try to comprehend the ins and outs of the company's behavior especially when striving to reach the global market. In order to answer this question we have classified this study into three parts. In the first part, we focus on the main reasons of the company propelling towards internationalization. The second part deals with the unexpected effects that arise due to the enforcement of foreign human labor and its exploitation (outsourcing). Finally the conclusion (third part) deals with an analysis of ethic in a global manufacturing process.

Extraits

[...] Fair- trade ensures that producers are paid a decent price that at least covers the true costs of production, despite often serious fluctuations in world commodity prices Conclusion The interaction of labour standards and international trade has become a key issue in the relations between the industrialized and the developing countries. As we know, workers in developing countries are subject to exploitative and abusive working conditions, and that their wages are very low, below their cost of living. The developed countries have to promote a labour standard to prohibit the use of forced labour and child labour. It could be done through mechanisms such as the World Trade Organization (WTO) and bilateral and regional trade agreements. [...]

[...] Business ethics are framed in several different ways. In a global sense of universal human relations, ethics are concerned with how a company conducts business to support widely held human rights and to protect nature. However universal human rights are subject to so many interpretations that few laws exist on an international scale to guide corporate conduct. More specific corporate conduct concerns ethical relationship between the company and people beyond the organisation who are directly affected by a company's decisions. [...]

[...] In addition to these standards, there are other labour standards that are currently being discussed that relate to the acceptable conditions of work, which include: a minimum wage sufficient for a living, a limitations on hours of work, and a certain safety and health in the workplace. The enforcement of labour standards through trade agreements should improve the working conditions and wages of workers in poor countries, reduce child labour and perhaps ban sweatshops. To conclude, the fact of producing as cheap as possible does not matter, what matter is the way it is done. Not respecting human liberty and dignity to produce is the big deal that links with ethic. References International Business and Managerial Perspective” (second edition) Ricky W. GRIFFIN and Michael W. [...]

[...] In fact, the unfair trade is the main reason of child labour and very low pay wages. The multinationals firms fix the products price at the cheapest as possible. Then local factories or companies in poor countries have to do the necessary to get the contract. They fix the wages to the lowest as possible. Therefore a salary is not enough for the living of a family. Childs have to work too to help out the family. In fact, as multinational corporations expand across borders, countries often compete with each other for jobs, investment, and industry. [...]

[...] Nike does not own directly the manufacturing plants. Adidas has one small factory, responsible for just 1 per cent of its total output. Instead of manufacturing products in owned factories huge corporations tender out the production of goods to a number of contractors, who in return may give the job to yet smaller contractors and factories. The factory who offers the best price gets the contract. b. The child labour In this research of making the most profits as possible, firms make everything to get an advantage upon the competition or the market. [...]