Question

What are the benefits that come from working in nations that maintain strict laws on human rights, healthcare, labor, and compensation? What are the drawbacks? Why do so many organizations choose to work and operate in countries without such laws? Overall, is it ethical, in your view, for organizations to do business in countries that do not maintain the laws mentioned above?

Answer 1

Following are the benefits that come from working in nations that maintain strict laws on human rights, healthcare, labor, and compensation:

One starts to understand that

1. to brings together the productive and suitably remunerated work, safety measures should be taken at the workplace for the physical and mental health of the workman at work place.
2. To provide social protection for families of employees, better prospects for their personal development and social integration,
3. To provide freedom for individuals working in the organization to set out their claims, to organize and to participate in decisions that affect their lives, and equality of opportunity and treatment for all men and women.
4. Decent work and high productivity is not only the objective but also a suitable Compensation (Remuneration), overtime and working facilities and environment is also to be provided to the employees.
5. To provide health care like first aid and their Medicare securities through Group Health Insurance by the Organization to provide them piece of mind while performing their duties with full dedication.
6. To bring the Organization at par with international legal framework on social standards ensures governments and employers to avoid the temptation of lowering labour standards in the hope that this could give them a greater comparative advantage in inter- national trade.
7. In this way the improvement in the Performance of employees increases and employees / staff turnover by changing their jobs decreases.
8. Through the legal nature of the standards in legal systems and administrations at the national level, and as part of the corpus of international law can bring about greater integration of the international community and provide the awareness for the following acts in the industry:-

1. Workable safe and healthful workplace,
2. compensation - workplace injuries and illnesses,
3. the right to form trade unions and bargain collectively,
4. equality of conditions and rights for immigrant - workers
5. Acceptable Conditions of Work with Respect to Minimum Wages, Hours of Work, and Occupational Safety and Health
6. freedom of association and protection of the right to organize,
7. the right to bargain collectively,
8. non discrimination amongst the employees,
1. occupational safety and health,
10. workers' compensation,
11. migrant worker protection
12. labor laws - effective enforcement;

Drawbacks:

Incase one does not work in the nations organization where strict laws on human rights, healthcare, labor, and compensation are not maintained, then he does not learn the meaning and the importance of the health care, safety and healthy workman environment.

Lowering labour standards can encourage the spread of low-wage, low-skill and high-turnover industries and prevent a country from developing more stable high-skilled employment, while at the same time slowing the economic growth of trade partners. Because international labour standards are minimum standards adopted by governments and the social partners, it is in everyone’s interest to see these rules applied across the board, so that those who do not put them into practice do not undermine the efforts of those who do.

Moreover such Organizations are more prone to accidents and labour hazard. They do not provide any health insurance, safety equipments like safety belts, safety goggles, safety nets, safety shoes and other safety accessories for the for the safe working conditions. They also do not provide structural wages and overtime. In such organizations workers have to work for more hours than International Standard.

Why do so many organizations choose to work and operate in countries without such laws?

Many Organizations chose to work in the countries where such laws are not followed. It is because they find it easier to operate and save money of Compliances of such laws due to loose law structure in such countries. By deviating with such laws they get more work done with less compensation to the employees. They do not provide any medical or health aids, they bypass the safety of the employees and working conditions are also not good. They stress upon the Productivity and Cost Reduction of the product. Their prime motive is to earn more profits.

Overall, is it ethical, in your view, for organizations to do business in countries that do not maintain the laws mentioned above?

Overall it not ethical, since an Organization is a not only a Profit Center or profit making unit but with the same it is also having a Social Responsibility to upgrade the employees working with them. They must provide reasonably good compensation and the overtime to the employees so that the basic need like livelihood expenses, Medical Emergencies, Children Education, and a social status as per their cadre should be maintained.