Business_Ethics_Final_Project

Business Ethics Carolyn Deann Richardson XMGT/216 September 3, 2011 Deborah McCafferty Business Ethics The first article selected for this paper is based around the child worker in the Brazilian export oriented shoe industry. The article from the Business Ethics Quarterly (French & Wokutch, 2005) examines the child workforce and the US Governments views and attempts to push the United States views on Child Labor Laws onto foreign countries such as Brazil. The article focuses on Franca, Brazil, a city which is renowned for its excellent shoe exports and according to (French & Wokutch, 2005), is notorious for its use of child workers. The article examines whether the child labor laws are unfair in Brazil, especially in Franca. It also examines how the Brazilians view child labor, which is definitely different from the standards in the United States. Interestingly enough, Lynchburg, Virginia, was once the shoe manufacturing capital of the United States and oddly enough in its heyday, the powerhouse shoe manufacturers here in Central Virginia often utilitized child labor, before the labor laws were enacted in the late 1930’s. In fact Craddock-Terry Shoe Company was the fifth largest shoe producer in the United States. Most of the history one can find on Craddock-Terry Shoe Company has left out the fact they often employed workers under the legal age of 16 are left off the pages or are pushed into the background. The fact is Craddock-Terry was sued in 1948 by the United States Circuit Court (United States Circuit Court vs. Craddock-Terry Shoe Corporation, 1948/1949). The case clearly established the fact that Craddock-Terry consistently employed children under the age of 16, specifically on U.S. Government contracts. Hence, the automatic attraction for the child labor laws in Franca, Brazil and how the United States put pressure on the manufacturers in Franca, to put an end to employing children under the age of 15 to work in their factories. According to (French & Wokutch, 2005), the children were employed due to intensifying global competition and later on the stagnation of the domestic market as the true reasons for child employment than family poverty. Franca’s sin of employing child labor is almost parallel to that of Craddock-Terry in the 1940’s. The difference is the fact the United States ceased employing children years before Brazil; therefore it has to or had to be wrong and inhumane. Because of international pressure and globalization manufacturing, several firms were forced to close down in Franca. In order to remain competitive, firms in Franca turned to outsourcing the labor intensive portion of shoe making. French and Wokutch write that the subcontracting or outsourcing of the labor intensive part of manufacturing led to family owned businesses that employ their children and many are under the age of 16, however, it is acceptable for one to employ their family members no matter what their age is. A survey was conducted of the families and their children in Franca, 90% of the children surveyed claimed they chose to work and gain experience as their alternative was the street. The work ethic in Brazil is very strong according to French and Wokutch, and as in the United States, most Brazilian children spend the money they make on items for themselves, and do not pay family bills or are required give their parents money. The second article chosen for this paper is on the exposure of child laborers in the tobacco trade in Kazakhstan. The ethics of Phillip Morris are in question because of the child laborers that are being utilized in the tobacco fields. The children are cheap labor, according to the group Human Rights, because they are paid based on piecework. Interestingly enough, Philip Morris International claims to have no previous knowledge of child labor used in picking tobacco on the farms in Kazakhstan. Only a tiny fraction of the tobacco from the farms in Kazakhstan is used in cigarettes and none of the tobaccos allegedly picked by children was put in any cigarettes sold outside of the Soviet Union. The spokesperson for Philip Morris International stated “Philip Morris is firmly opposed to child labor”, Peter Nixon said in a phone interview from the International headquarters located in Switzerland. Human Watch Inc. was also reported to have stated, the families often bring their children to work with them and require they pick the tobacco alongside the adults because the work is piecemeal and the workers are paid by what they pick per day. Human Watch Inc., went on to state that Philip Morris certainly had the funds to prevent such labor atrocities and should immediately ensure that no child workers are picking tobacco for Philip Morris International. The New York Times article pointed out that while Mr. Nixon, the company spokesperson thanked Human Watch for pointing out the continuing abusive situation and would immediately rectify the situation. The ethical perspective is, child labor in the United States of any kind is specifically illegal, prohibited, frowned upon and is not tolerated. Philip Morris does not allow child workers to participate in picking tobacco on farms located in the United States, but as stated earlier in this paper, picking tobacco which is considered highly labor intensive, is outsourced to sub vendors or contracted out to the farmers that grow the tobacco, so if the farmer chooses to enlist his or her children in picking tobacco, there is no harm in it, nor is it illegal or frowned upon because the individual farmer has the right to employ his or her family members as they see fit. Philip Morris in the United States is far removed from who actually picks the tobacco. Virginia is a tobacco state, the tobacco is sold very much like it was 150 years ago, taken to market by the farmer that grew the tobacco. Ethically who is responsible for ensuring who picks the tobacco' No one is, we take it for granted in the United States the tobacco was picked by legal employees. Philip Morris has since taken steps to ensure the tobacco they purchase in the international marketplace is not tobacco picked by children. The writer, Andrew Kramer, did note the total sales for Philip Morris in 2009 were $25 billion sales on internationally marketed cigarettes and in comparison, the amount of tobacco purchased in Kazakhstan was a mere 1,500 tons while their total global purchase was 400,000 tons. Global business ethics are different in the United States. The world does not have the same view of child labor as perhaps the United States, England, France and other European countries. Developing or emerging nations are still learning and often time’s corporations take advantage of the lack of knowledge or education. However, as citizens of the United States, one cannot be overly critical of child labor in other countries without truly understanding the overall demographics of the family, the standards of living, the educational systems and where and how children rank in the family unit in foreign countries. We must not, as a nation be too quick to judge, not too many years ago in many cases less than 70 years ago, the United States readily accepted child labor and thought nothing of allowing young children to work in some very dismal situations. What the United States has to do as the global market continues to expand into third world countries or emerging nations is, challenge ourselves to be honest, morally, and ethically responsible but not be too quick to force our way of doing business onto others. In summary, while most of us find child labor appalling and intolerable, we do not condone or encourage unfair labor practices of any kind. Labor injustices happen across the world on a regular basis. Corporations located or based in the United States have come a long way in correcting the wrongs that may have been committed over the past 15 years. Corporations like Nike have agreed to stop buying shoes made by children, Wal-Mart has cracked down across the globe on companies using unfair or illegal labor practices, and Philip Morris has done the same with their tobacco internationally. The list of vigilant or enlightened corporations grow each day as we are made aware of what actually takes place in foreign countries. Price is the main driver in tandem with purchasing power is what motivates the American consumer into demanding the best bargain at the lowest price. As consumers, it is our responsibility to be cognizant of where the merchandise we purchase comes from. Find out on one’s own merit how and where the product or goods are manufactured. Further, understand who is manufacturing the product or goods rather than deluding ourselves into thinking the company we purchase from has done their ethical due diligence. References Akin, L. (2009). Working Conditions of the Child Worker in Turkish Labour Law. Employee Responsibilities & Rights Journal, , 53-67. French, J. L., & Wokutch, R. E. (2005). Child Workers, Globalization, and International Business Ethics: A Case Study in Brazil's Export Oriented-Shoe Industry. Business Ethics , 15 (4), 615-640. Kramer, A. (2010, July 14). Phillip Morris is said to benefit from Child Labor. Moscow, Russia. United States Circuit Court vs. Craddock-Terry Shoe Corporation , Docket Number 9582 (4th Circuit court 1948/1949).