Exploitation of Oversees Labor by Multinational Companies Research Paper

Exploitation of Oversees Labor by Multinational Companies - Research Paper Example It is therefore not appropriate to say that the companies move to undeveloped countries to exploit their cheap labor as the country also benefit largely from new employment opportunities created and revenues that help the countries to develop (Drusilla K. Brown, Alan V. Deardorff, &Robert M. Stern, 2002) Nevertheless, businesses are bided by a code of ethics which are moral values that determine how individual, group organization and business transact their businesses. These can be applied to all form of businesses as they are universal and business must follow them in order to respect human dignity during transaction. Business being unethical means that it operates against the universal code of ethics which prevent it from immoral ways of gaining profits through exploiting human recourses. With the main objective of the business being making profits, it must ensure that it contributes and respect human dignity despite their states of need (Flanagan & Robert 2006, p.118). Labor in US has become so expensive for many companies to operate at a profit. As a result, many companies have moved its operations to other countries to countries where there are high levels of unemployment. Their move can be looked in two dimensions. One is that the companies are doing favor to the local society through providing them with labor. But, on the other hand it can be perceived as exploiting cheap labor. Cheap labor can be perceived to be labor which can be obtained at a low cost and is worth of no respect (Drusilla K. Brown, Alan V. Deardorff, &Robert M. Stern, 2002) One of such companies that exploit cheap labor overseas through opening up of production branches in developing countries is IBM. This is a company that mainly deals with software development which is an expensive sector when it is operated in United States. This has forced the company to open its branches in India as the level of running such a business is low. Due to high population the government has found it har d to be able to support the high population making majority of them to live below the poverty level. Some of the skilled personnel who have the same qualifications as those in United States are unemployed therefore; when such an opportunity arises they are ready to offer their labor despite being paid lowly. Despite the undeveloped countries having many employment challenges that hinder them from putting up laws and regulations that would prevent United States companies from exploiting overseas labor, the companies should not use this as an opportunity to make enormous profits on behalf of the poor citizens. This is because the company will be increasing the poverty levels in the country as after exploiting the resources, the money obtained is then transferred back to United States. Instead the company should participate in corporate social responsibility through involving itself with maters that would improve the welfare of that country or the society. Mainly, the companies that ar e involved in using overseas labor are those whose operations cannot be easily mechanized therefore; need a lot of labor to run its processes. Clothing industry is one of those sectors that have established their companies overseas. This has enabled the company to be able to utilize both the available cheap labor and raw materials. With the advanced technology due to globalization, management of these branches have been