Alexandra Bandina1 and Ahmad Banki2
Affiliation: 1John Molson School of Business, Concordia University, Montreal, Canada and 2Department of Economics, Dawson College, Westmount, Canada
Email of Alexandra Bandina: [email protected]
Email of Ahmad Banki: [email protected]
Abstract: In search of a consensus about the root cause of the ethical issues of sweatshops, this paper uses insights from economics to arrive at a fundamental principle: the mother of all evil is the concentration of power. To appraise the ethical value of a transaction or policy, one must investigate the extent to which it creates or sustains monopoly powers. The paper applies this principle to licensure, protectionism, boycotting, trade unions and price controls. The moral guidelines driven from this principle are predominantly negative in nature: they offer actions and decisions which must be avoided in order to prevent the concentration of power.
Keywords: Social Responsibility of Business; Business Ethics; Labour Standards; Employee Rights.