Due Diligence of U.S Based Companies

Author T.A. Frank’s, Confession’s of a Sweatshop Inspector, sheds light on a subject thus far I have been relatively unfamiliar with. The idea that United States based corporations, which outsource international suppliers, should be more accountable and involved with the problems that sweatshops face, I believe is vital to creating awareness and promoting positive ethical business relationships. Of course I have an aversion to the very concept and reality of sweatshops, but like most consumers, I do not research company’s suppliers when I go to make a purchase at Wal-mart or buy a pair of Nike running shoes. American’s just do not have time; I believe American based businesses need to make conscious efforts to act on behalf of their customers and manage their companies in a way which takes into account what is best for society. For example, I agree with Frank’s statement of the importance of researching ethically operating suppliers and publicly recognizing them on their websites.

The U.S. based corporations cannot directly control sweatshops but they can set a good example by not engaging in business with suppliers that act unethically with regard to their employees and their well-being. Companies should only be contracting with suppliers that provide adequate working conditions and proper labor standards. This in turn will force suppliers to adhere to specific standards if they want a share of the business.

Companies have numerous options for outsourcing, including cheap labor. There is not a need to go after the cheapest labor possible – those sweatshops that provide horrific and almost unbearable working conditions. The United States needs to set standards and do due diligence when selecting suppliers. It is obvious that we cannot control globalization, but companies can make genuine efforts to promote the importance of ethical business practices by not engaging with sweatshops.