A textile manufacturer is closing its North Carolina plant and moving the production of its products to a developing nation in Southeast Asia. The primary reason for the move is because the lower labor cost will allow the organization to benefit from the new location.
Proponents of the decision laud the move as a means to save the organization by taking advantage of the free market and finding cheaper methods of producing the company’s goods.
Opponents of the decision state that a trust existed between the company and the employees and that a breach of trust will occur due to this decision. Additionally, opponents cite recent findings that contractors in the Southeast Asia region, where the company is moving, have been cited for utilizing child labor and failing to provide working conditions equivalent to those in the United States.
Officials in the Southeast Asia region have answered the criticisms of the use of child labor by pointing out that oftentimes children are the only individuals in a family who are capable of working, and to deny them that opportunity would create even greater hardships on the already desperately poor population.
Journal of Business Ethics