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Labor Practices Paper

784 words - 4 pages

Labor Practices Paper

Labor Practices Paper
Sweatshops are used by companies to lower the cost of its production. The sweatshops refer to a company or factory which violates labor laws. They are known for employing children, providing below poverty wages, mentally and physically abusing their workers, forcing them to work long hours and punishing with physical force and sometime firing them if they do not comply accordingly. A lot of well-known companies have received backlash for using sweatshops to manufacture their products. Companies will not admit to using sweatshop labor because despite consumers wanting to keep cost down, it is unethical ...view middle of the document...

Demand defines the willingness of a consumer to buy a certain product. If goods or services are released to the market and they are purchased by only few customers, this means that their demand is low. Companies will in most cases think in terms of demand and supply. They will price their products at a high price if the demand is high. When the demand falls, the companies will reduce their prices to attract more customers and to remain competitive. Even though sweatshop labor is completely unfair and unethical, so many companies are tempted to continue to maintain these horrible environments. Consumers although do not agree with the conditions of the employees are often demanding lower prices on products.
The decisions a company makes on a daily basis has a huge impact on the company’s ethical environment. Companies that continue to remain ethically strong and create a supportive environment for their employees can easily avoid costly fines, a bad reputation, and getting involved in illegal activities. It is important for companies to stay focused on their goals and what kind of ethics the company was built on, as to not be influenced by other companies that are being incredibly unethical, even if they are being successful. According to "The Importance of Being Ethical" (1999), “Companies with strong ethics programs have found that these efforts can reduce potential costly fines, decrease...

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