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Exploring the Ethics and Economics of Global Labor Standards: A Challenge to Integrated Social Contract Theory

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  • Hartman, Laura P.
  • Shaw, Bill
  • Stevenson, Rodney

Abstract

The challenge that confronts corporate decision-makers in connection with global labor conditions is often in identifying the standards by which they should govern themselves. In an effort to provide greater direction in the face of possible global cultural conflicts, ethicists Thomas Donaldson and Thomas Dunfee draw on social contract theory to develop a method for identifying basic human rights: Integrated Social Contract Theory (ISCT). In this paper, we apply ISCT to the challenge of global labor standards, attempting to identify labor rights that could serve as guides for corporations producing or outsourcing outside of their home country. In addition to identifying areas of universal agreement, we also examine whether ISCT is, in fact, a sufficient basis for determining worker rights; we seek to define the parameters of the “sweatshop” problem; we include the application and results of our ISCT analysis as applied to labor standards: the global labor rights hypernorms; and conclude that ISCT is sufficient only for rights that are universal. We also discuss whether market-driven decisions can identify the boundaries of labor rights, or at least assure that market outcomes are compatible with maintaining labor rights, in order to respond to the shortcomings of ISCT. We conclude with some comments on directions of analysis for labor rights determination.

Suggested Citation

  • Hartman, Laura P. & Shaw, Bill & Stevenson, Rodney, 2003. "Exploring the Ethics and Economics of Global Labor Standards: A Challenge to Integrated Social Contract Theory," Business Ethics Quarterly, Cambridge University Press, vol. 13(2), pages 193-220, April.
    • Handle: RePEc:cup:buetqu:v:13:y:2003:i:02:p:193-220_00
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    Cited by:

    1. Prabhir Poruthiyil, 2013. "Weaning Business Ethics from Strategic Economism: The Development Ethics Perspective," Journal of Business Ethics, Springer, vol. 116(4), pages 735-749, September.
    2. Meyer, Klaus E. & Thein, Htwe Htwe, 2014. "Business under adverse home country institutions: The case of international sanctions against Myanmar," Journal of World Business, Elsevier, vol. 49(1), pages 156-171.
    3. Tolga Ulusemre & Xin Fang, 2022. "How do Expatriate Managers Draw the Boundaries of Moral Free Space in the Case of Guanxi?," Journal of Business Ethics, Springer, vol. 176(2), pages 311-324, March.
    4. George Brenkert, 2009. "ISCT, Hypernorms, and Business: A Reinterpretation," Journal of Business Ethics, Springer, vol. 88(4), pages 645-658, October.
    5. Federico Ast, 2019. "The Deliberative Test, a New Procedural Method for Ethical Decision Making in Integrative Social Contracts Theory," Journal of Business Ethics, Springer, vol. 155(1), pages 207-221, March.
    6. Ben Wempe, 2008. "Four Design Criteria for any Future Contractarian Theory of Business Ethics," Journal of Business Ethics, Springer, vol. 81(3), pages 697-714, September.
    7. Duane Windsor, 2018. "Dynamics for Integrative Social Contracts Theory: Norm Evolution and Individual Mobility," Journal of Business Ethics, Springer, vol. 149(1), pages 83-95, April.
    8. Katherina Glac & Tae Kim, 2009. "The “I” in ISCT: Normative and Empirical Facets of Integration," Journal of Business Ethics, Springer, vol. 88(4), pages 693-705, October.
    9. Baris Parkan, 2009. "On Multinational Corporations and the Provision of Positive Rights," Journal of Business Ethics, Springer, vol. 85(1), pages 73-82, February.
    10. Santangelo, Grazia D., 2018. "The impact of FDI in land in agriculture in developing countries on host country food security," Journal of World Business, Elsevier, vol. 53(1), pages 75-84.
    11. Haesun Park-Poaps & Kathleen Rees, 2010. "Stakeholder Forces of Socially Responsible Supply Chain Management Orientation," Journal of Business Ethics, Springer, vol. 92(2), pages 305-322, March.
    12. Dirk Gilbert & Michael Behnam, 2009. "Advancing Integrative Social Contracts Theory: A Habermasian Perspective," Journal of Business Ethics, Springer, vol. 89(2), pages 215-234, October.
    13. Ben Wempe, 2009. "Extant Social Contracts and the Question of Business Ethics," Journal of Business Ethics, Springer, vol. 88(4), pages 741-750, October.
    14. Ryan Burg, 2009. "Deliberative Business Ethics," Journal of Business Ethics, Springer, vol. 88(4), pages 665-683, October.
    15. Gregorio Guitián & Alejo José G. Sison, 2023. "Offshore Outsourcing from a Catholic Social Teaching Perspective," Journal of Business Ethics, Springer, vol. 185(3), pages 595-609, July.
    16. Wright, Scott A. & Schultz, Ainslie E., 2018. "The rising tide of artificial intelligence and business automation: Developing an ethical framework," Business Horizons, Elsevier, vol. 61(6), pages 823-832.
    17. Thomas Dunfee, 2006. "A Critical Perspective of Integrative Social Contracts Theory: Recurring Criticisms and Next Generation Research Topics," Journal of Business Ethics, Springer, vol. 68(3), pages 303-328, October.

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