Maintaining Ethical Standards While Managing in a Global Environment By: Lukas Smith, Virginia Smith, Brandon Freck

Ethical concerns and dilemmas  Avoiding Racism and Inequality  Keeping product quality high despite cost- cutting practices  Keeping working conditions safe  Maintaining environmental health standards to ensure clean air, water, etc.  Child Labor

SWEATSHOPS Merriam-Webster Dictionary defines sweatshop as a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions

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 Greedy, corrupt management practices (including low wages)  Unsafe working conditions (long hours, poor hygiene, outdated machinery)  Prison-like barracks  Labor force composed of mostly women and children  Loss of jobs in affluent countries due to factory relocations  Low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?