As a corporate finance professor, I have a duty to prepare you for the world of finance. This preparation encompasses introducing you to core finance concepts, formulas, theories and case examples from the business world.
As a Catholic teaching here at The Catholic University of America, I also have an obligation to present to you the basic tenants of Catholic social teaching in economics/work/business. This is important because the Church has a great deal to offer to the dialog of how we run and manage our businesses and how we interact with the world of work.
If I do my job well, by the end of the semester, you will understand the context and origins of the core Catholic economic principles of (1) respect for the human person, (2) solidarity, and (3) subsidiary and understand exactly how the application of these principles can make you a more effective business person.
Congratulations to Stephanie and Amelia for being our first presenters with Rerum novarum (yes, in Latin the second word is NOT capitalized). One of the things that struck me in their presentation, however, was the need for a bigger picture view of the modern global labor market.
Rerum novarum, at its core, is a sincere defense of the inalienable dignity of workers and was addressed to all humanity-- not just the Roman Catholic community. It stresses the importance of the (1) right to property, (2) principle of cooperation among the social classes, (3) rights of the weak and the poor, (4) the obligations of workers and employers, and (5) right to form associations. (Keep in mind that the Church has had much more to say on these issues since 1891-- and we will continue our exploration throughout the semester.)
That said, I think that we had some good dialog around these concepts in class. However, I am interested in what you think about modern application of these core concepts after having slept on it a bit. A group of students from Ohio University posted the video above that may spark some thoughts. Let me know what you think.
MSBA511 - Applied Financial Management, exploring our vocations in business with a vision of service to God and community.
When I read Rerum novarum, I thought about how far America has come since this was written. I failed to think outside of the country and look at the fact that there are still some countries that have terrible working conditions and we as Americans benefit materially from that. That is scary and in the sense of the rights of the weak and poor as addressed in Rerum Novarum, I think that it is clearly still applicable to parts of the world today. My question is what can we as Americans do to help ameliorate this situation in countries where we virtually have no power? Can we boycott the products made from these countries? Not if we plan on affording anything. This is something to ruminate on because it's clearly an issue.
ReplyDeleteRight to property is my favorite because it makes me think of capitalism. However I fear for countries like North Korea where this is something that is unheard of. Again, its sad to think that we take things like property for granted.
Cooperation among social classes is definitely an issue in capitalist countries. We have it hear in DC. There is clearly a class divide in this city where the wealthy are scared to go through certain parts of town from previous conceptions of the people who live there and the poor may resent the wealthy for having things they don't have. It could definitely be worse with more violence but it is still something that will need to be worked on. It is coming up with an appropriate policy that is the issue here. I feel like that is always the issue.
I'm indifferent on unions currently but in terms of the obligations of employees and employers, I think that at least in America, employers have come a long way of being supportive, friendly, and approachable. That is a general statement and there is always room for improvement. However, I also think that a lot of employees have stopped "working to live" and it is definitely possible that productivity in turn has decreased, but for the better of human development.
I have studied Rerum novarum in the past and it was nice to revisit it. It's a wonderful encyclical and very adaptable to modern society. I especially appreciate the Church's stance on the rights of workers, the weak and the poor, for those three groups of people are vulnerable and deserve the support of not only the Church, but the greater community.
ReplyDeleteProf. Carpenter, thank you for posting this video. I have been involved with an organization called Kids Can Free the Children (originally Free the Children). This organization, which was founded and run by young people, sought to end child labor and exploitation. As a teen, I was the director of a KCFTC chapter in NJ. My work with the organization allowed me to understand what child labor is, why it exists and how to end it. It is devastating that it still exists, but not a surprise. As long as big companies have power and seek to make profits, their work will be outsourced to developing countries to produce their products where the labor is cheap. Until more stringent labor laws are passed and enforced (easier said than done, I know), child labor will persist. Rerum novarum was one of the first to attempt at making this ideal a reality. While its theories may have been applied to developed nations, its scope does not reach many developing nations.
Thanks to progress made by documents such as Rerum novarum, in countries such as the United States, employees are now protected by labor laws that allow them earn at least a minimum wage and to work in safe conditions. Children are required to attend school and cannot work until the teenage years. This should be the standard worldwide, but it is not. What is most devastating to me is that it is the developed countries that assist in this type of lifestyle existing.
Amelia, you mentioned boycotting certain products. This is a popular method of defying a company, such as Nike, that is notorious for their child labor practices. Unfortunately, boycotting has very little effect, especially on billion dollar companies. Of course, the message can be powerful with a large enough campaign, and I encourage everyone to do this on a personal level, but the impact will not be felt by Nike. Boycotting a smaller company may have a greater impact, but this will then negatively affect the children in factories. If a factory is shut down, children will be left on the streets and are likely to partake in other money-making activities, i.e. prostitution. The underlying problem here is not child labor--It is poverty, which really just opens up another can of worms...
All in all, as Amelia said, the United States came a long way in labor practices and property rights, so there is hope for all countries. Until then, I will be grateful to live in a country where I am protected as a worker.
Over the past few generations, the right to property has been maintained in theory and is maintained still by law. Yet, because of certain economic decisions and debt, and the increased debt that each generation has in comparison to the previous generation, the amount of private property that is actually obtained is shrinking. In general, debt limits one’s ability to own property, invest, and gain more property. Therefore, in light of our modern day situation: through key economic decisions, only a few people and government are increasingly controlling the masses as the average person’s ability to obtain property, to be truly independent and in control of their own lives, is limited, even in a democratic society where the pursuit of property is technically on the books as a legal right. While certain government officials may not intentionally want to limit the average person’s financial freedom, we may agree that the affects of certain economic decisions limits the average person’s financial potential. After all, as we grow increasingly in debt as a nation and individually, financial potential in general, decreases. Even many people, who “own” homes today, may have not needed a mortgage at all two generations ago or less of a mortgage one generation ago. The amount of debts, loans, and mortgages are increasing with each generation for the past few generations. Through key modern economic and even social decisions, this right to property is being taken away because in reality, the ability to truly own property is decreasing for the past few generations.
ReplyDeleteThis video reminds me of Professor McHie’s lecture on Moral Imagination and the three main principles: Respect for Human Core Values, Respect for Local Tradition and Belief that Context Matters. Remember, when we were presented with the situation of child labors? Often, these child labors are the sole financial providers for their families. Therefore, their work allows their families to eat for a week. Yes, the wages are low, the labor is difficult and children are denied education. But who are we to say to these children are no longer allowed to work? I am not arguing for child labor. However, I am arguing for other solutions. With that said, these are my suggestions and possible other alternatives for child labor.
ReplyDeleteRespect for Human Core Values relates to the notion all individuals deserve the same opportunities. All humans possess human dignity and merit equal rights. Therefore, all human deserve the right to an education. Education not only benefits the individual, but also the community. Education provides growth and innovation for generations to flourish. Using Moral Imagination, the children should not be denied an education because it is a human core value.
Respect of Local Tradition is important when addressing this issue. Visibly, local tradition allows children to work in order to provide for their families. Although in the United States, children are not allowed to work and not go to school, the tradition in other nations may be different. It is our responsibility to respect others’ cultural beliefs and traditions. If children are permitted to work in other cultures, we must respect those values and find solutions in order to allow those guidelines while attempting to better the child.
Belief that Context Matters directly correlates with the idea that not all situations are black or white. Grey areas do exist. In order to make good decisions, one must understand all of the variables involved and more importantly, understand the story behind every situation. The children who are working are working for a noble cause: their families. Although they are not being educated, the children are employed for a viable reason. Despite the fact, education is essential in order to ensure success the children are currently forgoing their education in order to support their families. Nonetheless, education would only provide the children with more opportunities in the future and more money to give to their families. Therefore, while taking into consideration the fundamentals of the Moral Imagination, I propose two solutions. The factory the children are working for can pay for the children to go to school and then hire the children to work for the factory when they are of age to work. Thus, the factory is making an investment in the children and their education; in addition to securing a return in their labor after the children have completed their studies. Alternatively, if it is impossible for the children to stop working entirely, the children could still work for the factory—in order to provide monetary income for their family—but go to school for half a day and work for the other half. Moral Imagination allows business owners and outsiders to analyze complicated situations in a variety ways. As a future member of the business world, it is imperative to analyze situations such as these from all angles. By doing so, a better informed decision can be made.
I believe Rerum novarum did great things for capitalism, workers rights, impoverished individuals, and the business world as a whole. However, not every situation is black and white. In a perfect world, yes, we want children to enjoy their childhood as NON-LABORS. But the world is not perfect. I think its important to remember human rights in every situation. Everyone deserves a right to a fare wage and free life.
This video reminded me of the class Prof. McHie taught last semester about moral imagination and respecting the belief that context matters. (Steph, we are on the same page here…) Upholding human dignity, respecting for basic rights, and practicing and enabling good citizenship are core values of the human person that must be upheld despite local traditions or practices and contexts.
ReplyDeleteChild labor is fundamentally wrong. Children workers are victims of social and distributive injustice. But, often times, they are the sole income earners for their families… they are then forced to choose between an education and supporting their families. Such a situation does not allow much of a choice for these children who consequently, compromise their own dignity and tights as human persons. With respect to the belief that context matters, child labor cannot be absolutely wrong. These children and their families may end up in worse conditions to just survive if they do not work. The benefits that child laborers received must also be recognized. Children workers become interdependent of their parents and acquire skills and knowledge that help their personal development. It is just as important to recognize children’s diverse needs and work situations, as it is to work towards bringing about justice.
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ReplyDeleteThis video brings to memory discussions the class had with Mr. McGurn last semester, about living or doing business in developing countries which have few laws protecting adult workers, much less children. There was a time were children were helping their parents in crop fields and farms both in Europe and the Americas; every nation has phases were it is necessary for the whole family to come together. Similarly, developing countries require more labor unfortunately at the expense of children, who are a cheap resource.
ReplyDeleteAs Meredith mentioned, the real problem is poverty. We can boycott certain products; it most likely will not have a significant impact on child labor. What can we do when parents have to push their children into the work force for the family to survive? I think it is great that some of these kids can be sponsored in a way that relieves parents of financial burdens as the child is educated; many non-profit organizations are involved in such programs. I believe until a change comes from within the country, all outsiders should do is bless individuals one at a time to lighten their affliction.
Regarding adult labor in the U.S., I believe some of us are very close to these kids worldwide. We are supposed to be working and compensated for 40 hours a week, however a lot of jobs do not stop when we step out of the office. We work on the road, on vacation, in our sleep, anywhere we can to be more “productive”; which also means working a 60-hour week for the same wage as 40 hours. We tend to forget why we work in the first place. I do believe though that our generation is more likely to strive for balance between social life and work. Again, workers rights have come a long way thankfully, and I look forward to their systematic improvement.
This video struck a chord with me, especially after our lecture from Congressman Fortenberry last week. He spoke about countries such as China that the U.S. currently outsources production to. These countries offer no benefits to their people and instead spend their proceeds on their military. In order to do business with U.S. companies many production factories in China must abide by strict labor codes. However, with a country prone to exploiting their own people, how can one be sure these laws are strictly enforced? This question always came to my mind while working in the fashion industry. My boss and other high level executives were constantly taking trips to China, Indonesia, and Sri Lanka to ensure the controls and standards of the production facilities were up to par. However, it always made me wonder how they kept tabs on the production facility by visiting only 3 times a year. How can U.S. business regulate the standards of a company overseas? These questions might not even occur to those in the U.S. who think of policy enforcement and rights brought forth by Rerum novarum as the norm. The essential rights of workers have been preserved for years in the states, making it hard for many to imagine the unbearable work conditions that are still in existence today. However, it is still a legitimate concern in many third world countries that have not adapted Rerum novarum beliefs. Therefore, U.S. businesses have the responsibility to mandate and enforce workers’ rights in countries where they do not exist. In conclusion, although the United States has mandated worker’s rights for over a century, they must follow these same founding principles in global business trade.
ReplyDeleteAs mentioned by earlier posters this is a subject with which we have some familiarity. I think that Meredith and Stephanie both made very solid points. Stephanie skillfully laid out the issues tying human core values and respect for local traditions that all businesses must adhere to when operating and pointed out the crucial issue facing these children- often they must work to ensure the survival of themselves and their families. Even then the sad reality is that in many cases the work they do only allows the most tenuous of grasps on survival. As mentioned by both Prof. McHie and Mr. McGurn during their lectures on the subject that it is sometimes difficult for Americans to immediately understand what a fair wage may be in a foreign country. When one hears that children are being paid 80 cents per hour we are horrified. When assuming a 40 hour work week that is an annual salary of 1536.00. The average salary of a person in India is $500 per year(Stanford School of Business). If the salary were 80 cents per day it would still be $292 per year and while that is a low figure the general poverty in the country combined with the low average income leads to very low prices on goods. While 80 cents seems to be a criminal wage here, in many places it is a good salary enabling a wage earner to afford to feed, clothe and house their family. While there are certainly problems existent in every country in the world when it comes to child labor and unsavory working conditions we must always remember to keep these issues in context. Conditions and standards in the United States are no more globally applicable than those from Sri Lanka, Zimbabwe or Poland. Each country has its own social and cultural values, its own fair wages, its own quirks and problems. The real issue which is brought to our attention by videos like the one above are those of poverty. As Meredith pointed out poverty creates the undercurrents which make child labor a necessity. Poverty is why quality of life is low, why workers remain in terrible conditions, why child labor is even socially conscionable in many places. The challenges to nations and regions gripped by poverty are manifold, yet we see often that economic bounty springs from low yet fair taxation, government encouraging investment, political stability and the personal and professional freedom to create and grow. When one looks at many of the nations who have some of the worst labor environments these key building blocks are not present and haven’t been for some time.
ReplyDeleteStephanie said well when she wrote “Everyone deserves a right to a fair wage and a free life”. While we agree that child labor shouldn’t be practiced, we should take a measured approach to ending it. If we simply refuse to allow it children will be hurt. We should instead work to create environments where children are free to pursue their education, allowing them a fair wage and a free life.
When I was in Colombia, I visited a trapiche, which is a traditional cane sugar (known as panela)factory. It was run by a very poor family in the countryside. There was a little boy, perhaps around 6 years old, covered in soot collecting wood for the fire and he actually looked like he enjoyed the work. I automatically thought, shouldn't he be playing soccer or something. It was heartbreaking. Poverty itself is heartbreaking. The only thing that we could do to help was to buy some panela. Sadly, it's a situation with no easy solution.
ReplyDeleteWhat can we say? Child labor happens and yes its wrong but it’s not the causation but the effect of something else. It’s not like there is amble adults to work and these companies are choosing children over adults. No, typically the children are the sole income providers for their family and without them earning what little they do the family would starve. So what do we do? Well you first have to find out the underlying cause of the children having to work. What are the parents doing? Are they ill? If so then the healthcare industry is the one that needs to be fixed. Are they deceased? If so then the social services industry is the one in need of fixing.
ReplyDeleteYes, these companies are exploiting these children but what does boycotting the companies do? Worst case scenario, the companies move somewhere else or shut down and the children are out of work, on the streets begging. Best case scenario for the kids, the companies fix the work environment and pay fair wages. But this just continues the cycle. These children still don’t get an opportunity to better themselves through education and training and I think that is the true tragedy in all of this. The children are stuck in a never-ending cycle of poverty.
I think the true underlying meaning in Rerum novarum is essentially that all workers should have the opportunity to better themselves so that they too can live a free life.
It is great to hear about your work with that organization, Meredith! I remember doing a paper back in the day about child labor during the Industrial Revolution. It is amazing to see how far America has come when other countries are lagging behind and still living in that 'industrial revolution' way. America has realized the true worth of all children and their impact on the future of society. I believe that a lot of America's success is due to the care and concern our government has put on education and labor laws. I mentioned in my last week blog post that education is so important to improving society. If people are left ignorant, it will only slow down growth and harm human society. The children are our future, and other countries need to realize this. It may be only one of the many benefits that America has compared to other countries but it just has that much more effect. Like Meredith said, we can only do so much in our boycotting effort. We must moreso look for ways to decrease poverty and improve education in foreign countries.
ReplyDeleteThe subject matter of this video directly correlates with several themes and topics that we covered last semester. It deals with the issue of the dignity in the workplace and the proper role of both the employer and the employee. When faced with a question of this sort, it is always important to do as Freidman say: to “break things down to their principles.”
ReplyDeleteWhen we as Westerners are faced things like foreign labor conditions, our immediate reaction is to recoil with disgust. This is only natural. However, we must look at all of the elements that play out in this situation. Should a major company break off its relationship with a foreign company if its working conditions are denying young workers the right to an education? Let’s look at this question a little closer.
First, we could have a long discussion on what exactly is a “right.” But that is a much longer discussion for another day. For the sake of the argument, let us accept education as something that should be pursued by all.
Secondly, we must look at the differences that are placed upon education and work in countries that differ as greatly as America and North Korea. The American view of education states that it is a generally accepted way of life. Indeed, it is oftentimes a prerequisite to employment. However, in less wealthy areas (say Bangladesh for example) there is a much greater emphasis placed upon work (work equals sustenance). It is a necessary way of life.
Thirdly, in several of the underprivileged nations, there is a very large emphasis placed on family (some would argue that it is far greater the West’s). By boycotting the child’s place of work in an attempt to allow him the opportunity to pursue an education we must ask “how is this going to affect his family dynamic?”
Fourth, the lines are a little blurry in this situation because there is not the immediate loss of life. If these machines were grinding up children then, yes, one would be morally culpable for participating in a business relationship. But are these children being paid a wage that is consistent with the average pay rate for that country? The answer to this question would make it all that more difficult. Because there is not an immediately perceived immorality (though we are tempted by time and temperament to think so) it is a little more difficult to condemn.
We cannot automatically assume that they are unhappy and yearning for an education. It is a safe assumption, but an assumption nonetheless. Would the families be split up if the child were to pursue an education? Does the child even want to pursue and education? What would be the financial ramifications of a major corporation breaking off its business relationship with an outsourced company because the American corporation disapproves of the outsourced companies child labor practices? Would it be better for the entire town to be plummeted into financial decay for the sake of a perceived injustice?
As mentioned earlier by Stephanie, we have to take into account all of these variables before we can take action against those things that we perceive to be morally abhorrent.
Sarah, thank you for sharing your story. Poverty is a very heartbreaking issue. I have never seen poverty in another country, but we do not have to go far. Unfortunately, we can look out our back doors and you are right. There is no easy fix for these issues. The children in these countries are working in order to support their families. As the movie clip demonstrated, these children are often separated from their families and working in harsh, dangerous conditions. If the child does not work, then their families do not eat.
ReplyDeleteWhat makes situations like these more heartbreaking is that the children do not know that it is in violation of their human rights. They grew up in harsh conditions and they do not know any better. It would be wonderful if a program could be implemented in order to pay the children for going to school, instead of going to work. This way the child would be safe and gain an education to better their life, and the life of their family members.