http://www.cnet.com/news/apple-chastised-for-unsafe-working-conditions-in-supplier-factory/
Major companies that provide goods and services which are known as luxury or high demand goods often lean toward cheaper costs of production. With the goal of increasing profit in mind, in order to decrease the costs of production, these multinational companies resort to low-cost labor (especially in places like China and Bangladesh) to fulfill their requirements or quotas. Although low-cost labor is favorable for the multinational companies, it is not favorable for the workers themselves (Shah). This is where we must consider business ethics. For example, in the Tibken article, we notice that the article is specifically about Apple’s discrepancies and its “serious health and safety, environmental and human rights violations” (Tibken).
Ethically, it is important that all businesses follow the rules and regulations listed under the human rights act, specifically for two main reasons. The first, in order for the product, or service, to be manufactured at a higher quality, the business must satisfy the customers needs and wants. Essentially, to allow your company flourish your employees must be comfortable and pleased with the standards of their work area, to present higher quality goods and services. Secondly, unacceptable work conditions, like those found in the Catcher Suqian base, can lead to higher liabilities for not only the company but the workers themselves. If the worker turns ill it would be at the risk of the company and would result in one less employee, and to a larger extent, less profit. This encompasses Edward Freeman’s Stakeholder Theory, which states that successful businesses must create value for all stakeholders, they can’t be viewed individually (What is). Essentially to understand the value of each one of the stakeholders and how they work together to allow a business to flourish (What is). Therefore, ethics revolving around low-cost labour as well as other aspects in business are all equally important, as they exist to allow the business to expand and sustain in a productive and healthy environment.
Work Cited
What Is Stakeholder Theory? – R. Edward Freeman. Perf. Edward Freeman. Youtube. N.p., 1 Oct. 2009. Web. 10 Sept. 2014. <https://www.youtube.com/watch?v=bIRUaLcvPe8#t=32>.
Tibken, Shara. “Apple Chastised for Unsafe Working.” CNET. N.p., 4 Sept. 2014. Web. 10 Sept. 2014.
Shah, Anup. “Corporations and Worker’s Rights.” – Global Issues. -, 26 May 2006. Web. 11 Sept. 2014.