What drives a corporation to use low-cost labor?

[Shavkat]

The utilization of low-cost labor raises several moral and ethical problems, and none of them are readily answered. Every society depends on its workers, who play a crucial role in the production process. The largest majority of customers in a community, however, are workers, and without the ability to consume what is produced, there is no sense in it. I am sure some companies are still aiming for this especially manufacturing companies.

 

[Johnson2468]

Some corporations may want to use low cost labor in order to increase their profit or even use the money to get more quality materials so as to increase their products quality

 

[SHAHID987]

Some organisations are still haring very low cost labour in order to increase their profitability they don't give the real payment to the workers which they deserve and that's why the output comes not up to the mark.

 

[Springtime]

The main purpose of corporations using low-cost labor is to cut costs and increase profit margin. But in my location, there is minimum wage system. In May 2023, the minimum wage will be increased to HK$40 (US$5.5) per hour. It's illegal to pay a worker less than this amount.

 

[Yohanna]

If a corporation is not making profit then it will not be able to pay huge amount of money for labourers.

 

[uptrendfinancialsignal]

Utilising a low-cost labour is to minimise expenses in the company.

 

[Shavkat]

Some corporations may want to use low cost labor in order to increase their profit or even use the money to get more quality materials so as to increase their products quality

I do think that most manufacturers are doing this. They tend to maintain buying high-end materials for their products. The massive production will be carried out with laborers that were paid so low to compensate the production rate per day.

 

[IB D]

It is a complete business strategy to keep cost of production low and stay competitive. If you look at it in sight of present economic realities, it could be a great strategy for a business to adopt.

 

[astutimeliana723]

Something that encourages companies to use cheap labor is to reduce production costs in order to increase profits. Even though low salaries are not effective for the smooth running of the company's operational processes, because there are many possibilities for employees to resign and move to other companies.

 

[Etini Willie]

Low cost labour can really help you to drive cost down but the challenge is that they may not be able to deliver within the efficency level required. It is a pragmatic approach to business.

 

[Authenticity101]

It is true that many companies utilizes low cost labour. Factories and other firms in my country pay their workers so low yet the work load is so huge. I guess they just want themselves to earn huge profits and that raises so many ethical issues.

 

[Niyi Briggs]

There is a reason why companies like Apple and other tech giants have their manufacturing plants in China. It is all because they can have access to very cheap labor. It is not peculiar to small factories. V

 

[Heatman]

The utilization of low-cost labor raises several moral and ethical problems, and none of them are readily answered. Every society depends on its workers, who play a crucial role in the production process. The largest majority of customers in a community, however, are workers, and without the ability to consume what is produced, there is no sense in it. I am sure some companies are still aiming for this especially manufacturing companies.

The main thing that is going to drive a business corporation into making use of low-cost labour is because they are trying to maximize their profit making.

 

[Bisolami]

Utilising a low-cost labour is to minimise expenses in the company.

This is very good in a company but I think it will affect their production because they will reduce the ingredients used to produce those those good and the quality will also drop

 

[eldavis]

In some cases it could be due to inflation. The cost of living is extremely high, hence people are looking for ways to cut cost of production just so they can make profit.

 

[Blessed19]

The one thing that makes an organisation or company go for a low cost labour is because they are trying to manage the expenses and most of the time low-cost labels they're bring in good profit for most organisations.