Topic > Sweatchop in Indonesia - 586

Nowadays, companies face high demand not for their products but for their ethical conduct in producing goods or services. Alongside technological advances that create easy accessibility to information and openness in media coverage, consumer awareness of the ethical issue of business is also increasing. This then creates a certain type of business, especially international business; they must be careful in the conduct of their business because each country has different standards and different rules as well as regulations regarding business ethics. There are 3 ethical factors that become the main consideration for the company in their business activities which concern profit, people and planet. Although many developments have been made in the rules and protocols governing these factors, the one that still has many gaps is the people factor. The well-known ethical problem related to this factor is exploitation. It is the term used to define factories that give their workers “low pay for long hours and in poor conditions” (Undated definition of sweatshop, p. Online). This problem mostly occurs in underdeveloped or developing countries, such as Indonesia and Bangladesh. Businesses or corporations choose to carry out their manufacturing process in these countries due to the cheap labor, availability of productive workers, and lack of law on working conditions. Nike; a famous sports brand, has a long history with this ethical issue. The problem emerged in 1991, after “Jeff Ballinger releases a report documenting low wages and poor working conditions in Indonesia” (Nisen 2013, p. Online). Workers were paid closer to the legal minimum wage at just $2 a day. Furthermore, the workplace was dangerous with... half of paper......grocery store [Accessed 17 May 2014]Galpin, R. (2002), Spotlight on Indonesian 'sweat shop'. BBC News [online]. Available at: http://news.bbc.co.uk/2/hi/asia-pacific/1860217.stm [Accessed 17 May 2014]Herlina, A. (undated), Workers' Condition in Indonesia. European Parliament [online]. Available at: http://www.europarl.europa.eu/hearings/19970617/droi/doc5_en.htm [Accessed 17 May 2014]Nike workers are 'kicked, slapped and verbally abused' in factories that produce Converse. (2011), Online Mail [online]. Available at: http://www.dailymail.co.uk/news/article-2014325/Nike-workers-kicked-slapped-verbally-abused-factories-making-Converse-line-Indonesia.html [Accessed 17 May 2014] Nisen, M. (2013), How Nike Solved the Sweatshop Problem. Business Insider [online]. Available at: http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5?IR=T& [Accessed May 17 2014]