The article discusses the relation between the concepts of unfair trade, exploitation, and below-subsistence wages with regard to individual economic transactions. Starting from the common notion that exploitation involves some kind of unfair advantage taking, it asks how “unfair” is to be understood, and what it is that is taken advantage of in exploitative exchanges. On this basis it then explores a line of argument for grounding the claim that below-subsistence wages are exploitative, focusing on the condition of morally transformative (...) voluntary consent to transactions. By analyzing the structure of coercion with regard to threats, offers, and circumstances it comes to the conclusion that consent to an offer is morally non-transformative with regard to legitimizing the outcome of a transaction if the person giving the “consent” has only unacceptable options in absolute terms to choose from, since this reduces “consent” to a mere act of rationality devoid of any normative content. Accordingly, it argues that insofar as below-subsistence wages are unacceptable options in absolute terms, they are to be considered exploitative and an instance of unfair trade. (shrink)

Although many people seem to share the intuition that multinational companies carry a responsibility for the working conditions in their supply chains, the justification offered for this assumption is usually rather unclear. This article explores a promising strategy for grounding the relevant intuition and for rendering its content more precise. It applies the criteria of David Miller's connection theory of remedial responsibility to different forms of supply chain governance as characterized by the Global Value Chains framework. The analysis suggests that (...) the criteria for identifying MNEs as remedially responsible for bad working conditions in their direct suppliers are fulfilled in many cases, even though differentiations are required with regard to the different supply chain governance structures. MNEs thus have a duty to make sure currently bad working conditions in their suppliers are changed for the better. Moreover, since production in supply chains for structural reasons continuously generates remedial responsibility of MNEs for bad working conditions in their suppliers, it puts the prospective responsibility on them to make sure that their suppliers offer acceptable working conditions. Further, it is suggested that the remedial responsibility of MNEs might require them to make financial compensation to victims of bad working conditions and in grave cases initiate or support programs to mitigate disastrous effects suffered by them. (shrink)