Lesser of two evils

Another week, another case that I struggle to find the right answers to a complex ethical issue/case. I think I finally got it, there is no good or bad, there is always some good & always some bad. Our only hope is to try to do the lesser of two evils. If we refer to this week’s case, K-PAN, by seeking their increased profitability, went to a developing country that provided low cost labor. As it happens in many developing countries, Nicaragua (Country chosen by K-PAN to operate) has high unemployment rate and fewer a) wages, b) effective labor unions, c) effective labor laws, d) producer constraints, e) environment standards. By having low labor cost & long shifts, K-PAN was in fact promoting sweatshop manufacturing.
But what are the alternatives? The alternatives are maintain production in USA & lose a competitive position (and provide ZERO new jobs in Nicaragua) or increase the wages in developing countries & also lose our competitive position. Either way the competitors will probably find a way to beat us. On the other side, if we move production to developing countries, we will be bring jobs to people in need & that should count for something. What we need to ensure is that there is a balance in place. A low wage but secure job can be ethically correct as long as it does not violate the basic ethical norms of society. For example, child labor should not be allowed, pregnant women should have the right for temporary maternity leave, have the right incentives in place, and so on. To conclude, I think that by providing a safe work environment & market-based wage, companies can reach a profit maximizing point that is both economically & socially responsible for all parties.