Why are Sweatshops used? To increase profit because of a cheaper labor force Avoid developed countries’ rules and regulations concerning U.S. wage and labor laws Help improve the economic state of Third World Countries To lower costs of living in affluent countries
For and Against Sweatshops Greedy, corrupt management practices (including low wages) Unsafe working conditions (long hours, poor hygiene, outdated machinery) Prison-like barracks Labor force composed of mostly women and children Loss of jobs in affluent countries due to factory relocations Low wages compared to what? Safety is second priority to providing for a family Shelter Income for families Cheaper products for buyers
Discussion Are Sweatshops Ethically acceptable? As a top manager of a business, would you choose to move your factory to an underdeveloped country for better profit? Why or why not? Do third world standards justify sweatshops? What steps could managers of sweatshops take to improve the conditions?