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Write 4 page essay on the topic Ethics and the Indian Laborer: Unethical Business Practices in the Indian Textile Industry.Additionally, India currently has very strict labor policies related to produ
Write 4 page essay on the topic Ethics and the Indian Laborer: Unethical Business Practices in the Indian Textile Industry.
Additionally, India currently has very strict labor policies related to productivity, making their outputs of textiles very high compared to other nations which fuel a powerful supply chain for American managers. Silk production in India is currently ranked second globally in relation to total output (IBEF, 2010). Much of this is due to the government allowing 100 percent foreign direct investment in the textile industry which has significant advantages to the Indian government. This direct investment builds a low-cost infrastructure for manufacture for American companies that avoid the high costs of labor incurred when using domestic, U.S. citizens in the production process. However, the lack of progressive labor relations changes in India and government tolerance of worker exploitation represents very unethical behavior. Why is Indian Textile Labor Unethical? The average pay for workers in the textile industry is only 91 cents per hour, which is just three percent of what American workers are paid (Sincavage, Haub &. Sharma, 2010). This is significantly inappropriate considering that employees are held to very strict output standards in order to meet with ever-rising demand from international buyers. Furthermore, it is very common in India for businesses to ignore recent regulations that restrict working hours, thus making employees work excessive overtime. At the same time, most employment contracts are only oral contracts and therefore the employees do not have legal protections in the event that they are exploited (Sincavage, et al., 2010). Development of effective employee-employer relationships in this country is significantly difficult as well (Kumar, 2002). Government is aware of this non-compliance by business managers, however manufacturing leadership in India are focused on meeting the supply demands of American businesses especially as it relates to retail clothing apparel and accessories produced in these textile companies. Therefore, Indian government and manufacturing supervision are putting profits ahead of the Indian health condition with no additional compensation for these poor working conditions for the laborer. Even though international agencies such as the United Nations continue to exert pressure on improving labor reform, such groups have little to no legal influence in these countries and no changes are implemented for the Indian employee. Another difficulty in providing ethical behavior for the workers is the tiered system of production common for clothing manufacture in India. Many American companies source their apparel brands with a large textile company where orders are placed and final shipment of the merchandise is delivered. However, these companies have tiers of manufacture that include small factories and individual workers that do hand-beading, sequin work, embroidery and other associated decoration on more expensive clothing (Level Works Limited, 2009). Those smaller companies’ low-skilled laborers that are not protected under the jurisdiction of certain labor laws are usually managed by independent business owners. The companies from the U.S. that source in this way are aware of these tiers of supply, but do little to invest capital into building a more efficient supply network in the larger company.
