There are two opposing views concerning intuitive cases of wage exploitation. The first denies that they are cases of exploitation at all. It is based on the nonworseness claim: there is nothing wrong with a discretionary mutually beneficial employment relationship. The second is the reasonable view: some employment relationships can be exploitative even if employers have no duty towards their employees. This article argues that the reasonable view does not completely defeat defences of wage exploitation, because these do not rely (...) solely on the nonworseness claim. They also rely on the idea, popularised by Alan Wertheimer, that exploitation is a form of disequilibrium price occurring in defective markets. The article then proceeds to criticise Wertheimer’s account through neoclassical, new institutional, and Austrian economics. It concludes that considerations for economic efficiency are irrelevant to assessing intuitions regarding exploitation. (shrink)

Responding to criticism by Gordon Sollars and Frank Englander, this paper highlights a significant tension in recent debates over the ethics of global supply chains. This tension concerns the appropriate focus and normative frame for these debates. My first goal is to make sense of what at first reading seems to be a very odd set of claims: that valuing free, autonomous, and respectful markets entails a “fetish for philosophical purity” that is inconsistent with a moral theory that finds no (...) wrong in harming workers, including the least advantaged among them. Sollars and Englander reach these conclusions, I believe, because their criticism assumes and relies upon the presumption of a global prioritarian frame, one which focuses individual welfare, and which they then apply at the level of individual political and economic actors. Much of Benjamin Powell and Matt Zwolinski’s work, I continue, including their criticism of political and economic activism and Powell’s indictment of organized labor, relies on a similar frame—while expanding the harms to include the freedom and autonomy of would-be sweatshop workers. This prioritarian frame, I argue, is particularly poorly suited to discussion of the ethical responsibilities of individual economic and political actors. We ought to reject it. To make progress on debates over global sweatshops, and the ethics of global supply chains in general, we need a better frame, and better standards of freedom and autonomy, than those invoked by many prominent defenders of sweatshops. (shrink)

We explore offshore outsourcing through the lenses of Catholic Social Teaching (CST). First, we review the outcomes of the 30-year debate in business ethics on issues related to offshore outsourcing. We then cluster authors into two groups—the justice-centered approach and the welfare-centered approach—corresponding to different perspectives on the ethical challenges of offshoring. In the second part, we present and apply the four fundamental principles of the CST (human dignity, subsidiarity, solidarity and the common good) to offshoring, in dialogue with the (...) previous debate. The unity and interconnection among the CST’s fundamental tenets provide a cohesive framework that integrates the points made by the justice-centered and welfare-centered approaches, while introducing the principle of solidarity, more focused on the worker as a person and their flourishing. CST also stresses the need to initiate processes oriented toward structural changes for the sake of human dignity and the common good. (shrink)

The article presents a novel normative model of shared responsibility for remedying unjust labor conditions and protecting workers’ rights in global supply chains. While existing literature on labor governance in the globalized economy tends to focus on empirical and conceptual investigations, the article contributes to the emerging scholarship by proposing moral justifications for labor governance schemes that go beyond voluntary private regulations and include public enforcement mechanisms. Drawing on normative theories of justice and on empirical-legal research, our Labor Model of (...) Shared Responsibility introduces three main claims: First, that responsibility for protecting and promoting labor standards in global supply chains should be shared by all private and institutional actors involved (whether directly or indirectly) in the production and distribution processes. Second, we offer a normative model for allocating responsibility among the various actors, based on five principles: connectedness, contribution, benefit, capacity, and power. Last, we demonstrate how the normative model could be implemented through various national and international institutional mechanisms. (shrink)

The article presents a novel normative model of shared responsibility for remedying unjust labor conditions and protecting workers’ rights in global supply chains. While existing literature on labor governance in the globalized economy tends to focus on empirical and conceptual investigations, the article contributes to the emerging scholarship by proposing moral justifications for labor governance schemes that go beyond voluntary private regulations and include public enforcement mechanisms. Drawing on normative theories of justice and on empirical-legal research, our Labor Model of (...) Shared Responsibility introduces three main claims: First, that responsibility for protecting and promoting labor standards in global supply chains should be shared by all private and institutional actors involved (whether directly or indirectly) in the production and distribution processes. Second, we offer a normative model for allocating responsibility among the various actors, based on five principles: connectedness, contribution, benefit, capacity, and power. Last, we demonstrate how the normative model could be implemented through various national and international institutional mechanisms. (shrink)

Production in sweatshops entails an elevated risk of occupational injury and sickness due to accidents and exposure to dangerous working conditions. As most sweatshop locations lack basic social security systems, health problems have severe consequences for affected workers. Against this background, this article considers what obligations employers of sweatshop labor have to their workers, and how they should meet them. Based on core libertarian concepts, it shows that they are morally responsible for health problems caused by their management decisions, that (...) they should compensate affected workers, and that they must prevent potentially irreversible health problems. In line with Nozick’s contractarian method, the article further argues that these obligations should be implemented through a compulsory employment injury insurance system. Such a system would impose industry-wide health and safety standards, in contrast to the view that libertarianism excludes any labor regulation for the protection of workers, as an illegitimate interference in voluntary labor contracts. (shrink)

In a recent article in this journal, David Faraci argues that the value of fairness can plausibly be appealed to in order to vindicate the view that consensual, mutually beneficial employment relationships can be wrongfully exploitative, even if employers have no obligation to hire or otherwise benefit those who are badly off enough to be vulnerable to wage exploitation. In this commentary, I argue that several values provide potentially strong grounds for thinking that it is at least sometimes better, morally (...) speaking, for employers to hire worse-off people at intuitively exploitative wages than to hire better-off people at intuitively fair wages. Rather than suggesting that hiring badly off people at intuitively exploitative wages is permissible, however, I suggest that this gives us reason to think that employers can be obligated to hire worse-off people rather than better-off people and to pay them nonexploitative wages. (shrink)

It is widely thought that firms that employ workers in “sweatshop” conditions wrongfully exploit those workers. This claim has been challenged by those who argue that because companies are not obligated to hire their workers in the first place, employing them cannot be wrong so long as they voluntarily accept their jobs and genuinely benefit from them. In this article, I argue that we can maintain that at least many sweatshop employees are wrongfully exploited, while accepting the plausible claim at (...) the core of many defenses of sweatshops, namely that engaging in a voluntary and mutually beneficial transaction with a person in need cannot constitute morally worse treatment of that person than doing nothing at all to benefit her. We can do this, I claim, by accepting that wealthy multinational corporations have positive duties to employ or otherwise benefit the global poor. I argue that these duties can be plausibly grounded in the fact that potential sweatshop workers are victims of global structural injustice, from which multinational corporations typically benefit. (shrink)

The ongoing controversy about sweatshop labor has mainly focused on economic, on the one, and ethical aspects, on the other side. While proponents of sweatshop labor have argued that low wages would attract foreign investments, would create new workplace opportunities and thus improve economic welfare in less-developed countries, opponents of sweatshop labor argue that such treatment of laborers would violate their dignity, and they prompt western buyers to stop this kind of exploitation. However, the arguments in this debate are not (...) new. As we will show, they can be traced back to the early “sweatshop” debate between social reformers and classical liberals in the 19th century. Interestingly, the 19th century debate identified sweatshop labor not as an industrial system but as a social phenomenon which becomes more likely when several social preconditions are fulfilled. It will be shown that the social preconditions identified in this debate determine working conditions till today and can be used to identify industries were sweatshop labor is more likely than in others—even in western countries. (shrink)

There are two opposing views concerning intuitive cases of wage exploitation. The first denies that they are cases of exploitation at all. It is based on the nonworseness claim: there is nothing wrong with a discretionary mutually beneficial employment relationship. The second is the reasonable view: some employment relationships can be exploitative even if employers have no duty towards their employees. This article argues that the reasonable view does not completely defeat defences of wage exploitation, because these do not rely (...) solely on the nonworseness claim. They also rely on the idea, popularised by Alan Wertheimer, that exploitation is a form of disequilibrium price occurring in defective markets. The article then proceeds to criticise Wertheimer’s account through neoclassical, new institutional, and Austrian economics. It concludes that considerations for economic efficiency are irrelevant to assessing intuitions regarding exploitation. (shrink)