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      Ethical issues of Labor Contractor

      In today’s globalizing business environment, it is rather easy to dismiss ethical obligation toward labor contractors as well as the ethical obligation toward the actions of labor contractors.

      In essence a labor contractor is an extension of a company which allows for outsourcing of its work, yet does not have an employee status. Though different from independent contractor which perform work independently for up to several different organizations simultaneously; labor contractor generally perform one particular task at any give time. Hence making them to proxy employee; which in turn may be accompanies by public relation issues such as moral and ethical standards.

      Such direct or indirect associations with a company logically dictate a clear approach in order to avoid pitfalls that may occur if loose regulations are used. Pitfalls include direct association to mismanaged practices that may or may not violate local rules, yet violate moral codes of the originating company.

      One of the rather clear examples is the use of child labor. Many developing nations that host foreign companies may not prohibit the use of child labor, yet those foreign countries will fact a degree of public outcry if it becomes public that production of particular goods may have involved child labor. It is besides us to make a judgment about the validity of child labor because of our lack of understanding of asymmetric factors that may contribute to such necessities. However, it is rather morally and socially prohibitive to even consider factors such as child labor as necessary.

      Ultimately it is important to point to the most significant factor in such decision making; mainly that most such moral obligations and the consequences have to be tied to public eyes and the reaction of the most important participants – consumers.

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