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Multinational Corporations

Autor:   •  May 8, 2017  •  Research Paper  •  1,975 Words (8 Pages)  •  453 Views

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Running Head: BUSINESS



In recent times, many multinational corporations (MNC’s) looking for establishing their operations in developing (i.e. poorer) countries that often lack, or do not enforce, minimum standards concerning wages, working conditions, the use of the natural environment, etc. In this case, sweatshop (sweat factory) is a factory or workshop, especially in the clothing and footwear industry that sometimes employing child labor and there manual workers are employed at very low wages for long hours and under poor conditions. Along with this, it is also noted down that, this paper discusses arguments of sweatshops as MNC’s (and/or their contractors) employment practices, strategies and policies in poorer and developing countries. Moreover, in the globalization, all industries cannot be ‘off-shored’ to poorer countries. Globalization process may now be resulting in the establishment of onshore employment practices that compared to sweatshops employment practices. This paper also evaluates sweatshops in Australia and analyses it position in poorer countries by referring to moral argument, governance argument, and economic argument. In the same way, all these are the key issues or objectives associated with this research paper that would be addressed during the study of this research paper. Finally, it can be said that, this research paper would be more valuable, and effective for the readers in understanding the concepts and role associated with the Sweatshops.

Arguments of Sweatshops Employment Practices in Poorer Countries by MNC’s

Sweatshop is a workplace operated by MNCs that has socially unacceptable working conditions due to the work in these conditions may be difficult, dangerous or underpaid for the workers. In addition to this, the employees or workers in sweatshops may underpaid and work long hours. At the same time, it is also found that, Sweatshops operated by MNCs are establishing their operations in developing (i.e. poorer) countries that may violate child labor laws and laws mandating overtime pay or a minimum wage. On the other hand, it is also nalyzed that, Sweatshops operated by MNCs those are establishing their operations in developing countries that do not enforce minimum standards concerning wages, child labor laws and safe or secure working conditions (Kolk & Van Tulder, 2006). On the other hand, it is also found that, these unethical or illegal aspects of business or workplace creating attention of the world's to the shocking conditions workers in the country's clothing industry.

In the past times, many workplaces have been low-paying, child labor, and without job security or workplace safety, but the concept of a sweatshop developed between 1830 and 1850 as a specific type of workshop in garment or cloth making under arduous conditions in London, England. At the same time, it is also found that, the workplaces system of subcontracting in the tailoring trade and might contract only 100workers and more. Moreover, during 1850-1900, sweatshops attached the rural poor in the workplace to poor or less growing cities (Miller, 2003). These sweatshops operated by MNCs incurred criticism by labor leaders as crowded, child labor, poorly ventilated, low wages, prone to fires and there are many crowded workers into small tenement building.


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