The Wage Setting Process In this paper I will defend a conception of fairness in labor markets. I will argue that we should take a procedural approach to the evaluation of fairness in markets. The procedural approach defended here goes beyond the traditional procedural view that requires only the absence of force and fraud. But it avoids the pitfalls of the other classical conception of fairness in the market: the idea of a just wage or just price. Fairness in markets (...) is analogous to fairness in the democratic process. I will start with a discussion and critique of Joseph Heath’s stimulating discussion of fairness in labor markets. Though I agree in part with his assessment of the just wage tradition, I will argue that there is room for thinking about fairness in markets. I will then lay out a conception of fairness that is based on the analogy with democracy. The procedural idea of equal power can be given an interpretation both in perfectly competitive markets and in imperfectly competitive markets. I will show how this approach has implications for conceiving of how firms ought to be organized and for defining a fair process of wage setting in the essentially highly imperfect conditions of the labor market. (shrink)

Theories of threats and offers can blind us to some wrongs even as they illuminate others. Spouses sometimes negotiate divorce settlements by proposing to litigate custody unless given financial concessions. Supported by theories that rely exclusively on rights, courts often uphold these settlements saying things like "[s]imply insisting upon ... what one believes to be his legal rights is not coercive." I suggest a means of distinguishing (divorcing) threats from offers that explains why it is sometimes coercive to insist on (...) one's rights in negotiations. (shrink)

:This paper explores the foundations of the theory of exploitation as the unequal exchange of labour. The key intuitions behind all of the main approaches to UEL exploitation are explicitly analysed as a series of formal axioms in a general economic environment. Then, a single domain condition calledLabour Exploitationis formulated, which summarizes the foundations of UEL exploitation theory, defines the basic domain of all UEL exploitation forms, and identifies the formal and theoretical framework for the analysis of the appropriate definition (...) of exploitation. (shrink)

Economic theory teaches that it is in every country’s interest to trade. Trade is a voluntary activity among consenting parties. On this view, considerations of justice have little bearing on trade, and political philosophers concerned with global justice should stay largely silent on trade. According to a very different view that has recently gained prominence, international trade can only occur before the background of an international market reliance practice shaped by states. Trade is a shared activity among states, and all (...) participating states have in principle equal claims to gains from trade. Trade then becomes a central topic for political philosophers. Both views are problematic. A third view about the role of trade in a theory of global justice is then presented, which gives pride of place to a notion of exploitation. The other two views should be abandoned. (shrink)

This paper reviews the recent literature on exploitation. It distinguishes between three main species of exploitation theory: teleology-based accounts, respect-based accounts, and freedom-based accounts. It then addresses the implications of each.

Whether an action is morally right depends upon the alternative acts available to the agent. Actualists hold that what an agent would actually do determines her moral obligations. Possibilists hold that what an agent could possibly do determines her moral obligations. Both views face compelling criticisms. Despite the fact that actualist and possibilist assumptions are at the heart of seminal arguments in business ethics, there has been no explicit discussion of actualism and possibilism in the business ethics literature. This paper (...) has two primary goals. First, it aims to rectify this omission by bringing to light the importance of the actualism/possibilism debate for business ethics through questions about the ethics of sweatshops. Second, it aims to make some progress in the sweatshop debate by examining and defending an alternative view, hybridism, and describing the moral and practical implications of hybridism for the sweatshop debate. (shrink)

:This paper argues that, inasmuch as exploitation is a form of injustice, exploitative acts need not be performed intentionally.

The economic and moral defense of sweatshops given by Powell and Zwolinski has been criticized in two recent papers. Coakley and Kates focus on putative weaknesses in the logic of Powell’s and Zwolinski’s argument. Preiss :55–82, 2014) argues that, even granting the validity of their economic argument, Powell’s and Zwolinski’s defense is without force when viewed from a Kantian republican viewpoint. We are concerned that sweatshop critics have misinterpreted the economic literature and overstated the conclusions that follow from their ethical (...) premises. We show that the best understanding of the current economic literature supports Powell’s and Zwolinski’s conclusions about the negative effects of sweatshop wage regulation, and that it is unreasonable to reject economic analysis in moral argument against sweatshops even from a Kantian perspective. Additionally, we defend the theory of exploitation as unfairness given by Wertheimer, and show how economic analysis can be applied to that theory to identify cases of sweatshop exploitation. (shrink)

In this review, I survey theoretical accounts of exploitation in business, chiefly through the example of low wage or sweatshop labor. This labor is associated with wages that fall below a living wage standard and include long working hours. Labor of this kind is often described as self-evidently exploitative and immoral (Van Natta 1995). But for those who defend sweatshop labor as the first rung on a ladder toward greater economic development, the charge that sweatshop labor is self-evidently exploitative fails (...) adequately to explain the nature of the alleged wrongdoing. While all sides might agree that poor working conditions are unfortunate and undesirable, defenders of sweatshop labor argue that they provide the best available employment alternative for some workers and the best chance at economic development for many low and middle income countries (LMICs). Some defenders of sweatshop labor even embrace the label of exploitation. <br><br>Unless there is a clear, widely understood account by which exploitation is a moral wrong, then charging a practice as exploitative will do little to advance debates over whether and why a practice is morally problematic. A considerable body of work has been developed applying a growing literature on exploitation to sweatshop labor. While many forms of moral wrong are associated with sweatshop labor, I will focus specifically on the worry that low wages allow relatively wealthy employers wrongfully to take advantage of or gain from relatively poor workers, especially in LMICs. In particular, I will focus on instances of alleged exploitation in employment relationships that are voluntary and mutually beneficial. I have two reasons for doing so. First, by restricting this review to voluntary and mutually beneficial instances of exploitation, I can isolate the moral wrong of exploitation from other moral wrongs, especially the wrongs of coercion and outright harms to workers. Second, the focus on mutually beneficial and voluntary relationships will allow for arguments that sweatshop labor is not only not exploitative, but is a morally praiseworthy means of helping to encourage economic growth in poor areas of the world and to provide jobs that pay better and are more stable than any existing alternatives.<br><br>In this review, I aim to accomplish three goals. First, I will provide an overview of the many different uses of the charge of exploitation in business practice through an examination of the uses of the term in the literature on sweatshop labor. While it is often not clear what kind of moral wrong is assumed to take place when the charge of exploitation is used, I will demonstrate that many distinct types of exploitation, connected to distinct moral wrongs, are used in the literature on sweatshop labor and elsewhere in business ethics. Specifically, I will identify two broad categories of exploitation—exploitation as unfairness and exploitation as the mere use of others—with subgroups under each main category of exploitation. Second, I will discuss which of these senses of exploitation are defensible as identifying clear moral wrongs that take place in the context of business and, specifically, sweatshop labor. As I will argue, not all uses of the charge of exploitation are capable of persuasively identifying clear moral wrongs. Moreover, there is not a single, clear type of exploitation that takes place in business but, rather, several distinct forms. Third, I will apply the lessons learned from my exploration of exploitation in sweatshop labor to other specific areas of business. As I will argue, there are multiple viable models of exploitation in the sweatshop literature that can illuminate exploitative practices of relatively well compensated employees, customers, suppliers, and entire communities. <br><br>While discussions of theories of exploitation tend to argue for a single, correct account of this moral wrong, my review of the literature on exploitation in sweatshop labor supports the conclusion that there are multiple defensible accounts of the moral wrong of exploitation. For this reason, those who would charge that a relationship is exploitative should specify the form of exploitation that they believe is taking place. (shrink)

ABSTRACT:This article considers the economic case for so-called sweatshop wages and working conditions. My goal is not to defend or reject the economic case for sweatshops. Instead, proceeding from a broadly pluralist understanding of value, I make and defend a number of claims concerning the ethical relevance of economic analysis for values that different agents utilize to evaluate sweatshops. My arguments give special attention to a series of recent articles by Benjamin Powell and Matt Zwolinski, which represent the latest and (...) best defense of the economic case for sweatshops. In the process, I challenge Zwolinski’s “non-worseness claim”, and the idea that opposition to sweatshop wages and working conditions fails to respect that the autonomy of would-be sweatshop workers. Ultimately, I conclude that even if the economic case for sweatshops rests on a solid empirical foundation, agents possess good reason to advocate for better wages and working conditions for sweatshop workers, and to prefer less exploitative or coercive relationships. Sweatshop labor undermines a compelling vision of free markets, according to both Kantian and republican conceptions of freedom, and the relationships formed by those who participate in such markets. (shrink)

ABSTRACT:This article considers the economic case for so-called sweatshop wages and working conditions. My goal is not to defend or reject the economic case for sweatshops. Instead, proceeding from a broadly pluralist understanding of value, I make and defend a number of claims concerning the ethical relevance of economic analysis for values that different agents utilize to evaluate sweatshops. My arguments give special attention to a series of recent articles by Benjamin Powell and Matt Zwolinski, which represent the latest and (...) best defense of the economic case for sweatshops. In the process, I challenge Zwolinski’s “non-worseness claim” (NWC), and the idea that opposition to sweatshop wages and working conditions fails to respect that the autonomy of would-be sweatshop workers. Ultimately, I conclude that even if the economic case for sweatshops rests on a solid empirical foundation, agents possess good reason to advocate for better wages and working conditions for sweatshop workers, and to prefer less exploitative or coercive relationships. Sweatshop labor undermines a compelling vision of free markets, according to both Kantian and republican conceptions of freedom, and the relationships formed by those who participate in such markets. (shrink)

Unlike exploitative exchanges, exchanges featuring externalities have never seemed to pose particular problems to liberal theories of justice. State interference with exchanges featuring externalities seems permissible, like it is for coercive or deceptive exchanges. This is because exchanges featuring negative externalities seem to be clear cases of the two exchanging parties harming a third one via the exchange—and thus of conduct violating the harm principle. This essay aims to put this idea into question. I will argue that exchanges featuring negative (...) externalities are not unjust in this straightforward way, i.e. because they would constitute an instance of wrongfully causing or risking a bodily or material harm. In fact, unless we are subscribing to particularly demanding variants of liberalism—e.g. perfectionist liberalism—or unless we are exclusively focusing on borderline cases of externalities—i.e. of effects of exchanges hardly to be called externalities—there is no liberal theory of how exchanges featuring externalities are unjust. (shrink)

Mutually beneficial exchanges in markets can be exploitative because one party takes advantage of an underlying injustice. For instance, employers of sweatshop workers are often accused of exploiting the desperate conditions of their employees, although the latter accept the terms of their employment voluntarily. A weakness of this account of exploitation is its tendency for over-inclusiveness. Certainly, given the prevalence of global and domestic socioeconomic inequalities, not all exchanges that take place against background injustices should be considered exploitative. This paper (...) offers a framework to identify exploitation in mutually beneficial exchange, focusing on the case of sweatshop labor. It argues that an employer can be viewed as taking unfair advantage of an underlying injustice if and only if the employer’s surplus from the exchange in the unjust state of affairs exceeds the surplus it could maximally obtain in a just state of affairs. The paper illustrates the applicability of this framework using three different conceptions of justice and argues that it is superior to microlevel accounts of exploitation that regard background justice as irrelevant. The paper concludes by describing some normative implications that follow from judging an exchange exploitative. (shrink)

Recently, business organizations have increasingly turned to a novel form of non-monetary incentives—that is, “gamification,” which refers to a motivation technique using video game elements, such as digital points, badges, and friendly competition in non-game contexts like workplaces. The introduction of gamification to the context of human resource management has immediately become embroiled in serious moral debates. Most notable is the accusation that using gamification as a motivation tool, employers exploit workers. This article offers an in-depth analysis of the moral (...) charge of exploitation. This article maintains that there are no clear grounds for believing that gamification of labor is exploitative and that if gamification of labor involves a wrong or vice, it must be something other than exploitation. (shrink)

ABSTRACT:Microfinance is often assumed to be an ethically progressive industry, but in recent years it has been the target of much ethical criticism. Microfinance institutions have been accused of using exploitative lending techniques and charging usurious interest rates; and critics even question the ability of microfinance to alleviate poverty. This article reviews recent research on the microfinance sector that addresses these ethical issues. We show how this research is relevant to a number of theoretical issues, such as how to define (...) poverty, how to understand exploitation, and how to balance financial and social goals in commercial organizations. We conclude by identifying a critical agenda for future research. (shrink)

In April 1962, white segregationists paid money to African Americans agreeing to leave New Orleans. In 2010, the British National Party proposed paying non-white migrants money to leave the UK. Five years later, a landlord in New York paid African American tenants to vacate their apartments. This article considers when, if ever, it is morally permissible to pay minorities to leave. I argue that paying minorities to leave is demeaning towards recipients and so wrong. Although the payments are wrong, it (...) is not clear if they are impermissible, given the benefits for the recipients. I argue that payments are impermissible if at least one of two conditions are met: The payments demean or harm other members of society, or the payments are provided to recipients who have failed to consent to the payments. (shrink)

Since 2015 millions of migrants have paid smugglers to take them across borders. In response, states have increasingly arrested smugglers, hoping to morally condemn smuggling, and to decrease the rate of inward migration. This article argues that, even if a state is justified in morally condemning smuggling, and justified in decreasing inward migration, arresting smugglers is a disproportionate response for reaching these ends.

The concept of exploitation brings many of our ordinary moral intuitions into conflict. Exploitation—or to use the commonly accepted ordinary language definition, taking unfair advantage—is often thought to be morally impermissible. In order to be permissible, transactions must not be unfair. The claim that engaging in mutually beneficial transactions is morally better than not transacting is also quite compelling. However, when combined with the claim that morally permissible transactions are better than impermissible transactions, these three imply the counterintuitive claim that (...) it is obligatory to engage in mutually beneficial transactions. In this paper I outline the conditions that comprise this ‘paradox of exploitation’ along with a solution that involves replacing one of the original conditions with a condition I call Weak Non-worseness. The solution captures the priority of our concerns about exploitation by making a concern for the fairness of a transaction subsidiary to a concern for the welfare of the would-be exploited. (shrink)

We consider a case where consumers are faced with a choice between sweatshop-produced clothing and identical clothing produced in high-income countries. We argue that it is morally better for consumers to purchase clothing produced in sweatshops and then to compensate sweatshop workers for the difference between their actual wage and a fair wage than it is for them either to purchase the sweatshop clothing without this compensatory transfer or to purchase clothing produced in high-income countries.

One topic of growing interest in the debate on intergenerational justice is the duty to respect the freedom of future generations. One consideration in favor of such a duty is that the decisions of present generations will affect the range of decisions that will be available to future people. As a consequence, future generations’ freedom to direct their lives may be importantly restricted such that present generations can be seen as taking future people’s lives into their hands and disempowering them. (...) This article defends the idea that present generations have an obligation to sustain a certain threshold of freedom for members of present and future generations alike. It argues that we should regard sustainability policies as a way to redistribute freedom across members of different generations. It starts by explaining the centrality of social freedom to the way we conceive of moral persons, then explains how freedom can be understood as an object of redistribution. It then argues that by imposing some risks—such as that of resource depletion or destruction of the ecosystem—on future generations, present generations push future generations’ freedom below an acceptable threshold. The paper concludes with examples of how this focus on freedom can offer guidance in selecting and justifying sustainability policies—for example, measures for conserving biodiverse environments—even when it is not clear how they will directly contribute to the well-being of future persons. (shrink)

According to some accounts of exploitation, most notably Ruth Sample’s degradation-based account and Robert Goodin’s vulnerability-based account, exploitation occurs when an advantaged party fails to constrain their advantage in light of another’s disadvantage, regardless of the cause of this disadvantage. Because the duty of constraint in these accounts does not depend on the cause of the disadvantage, the advantaged’s duty of constraint is what I call a ‘come-what-may’ duty. I show that come-what-may duties create moral hazards that can themselves be (...) exploited by the disadvantaged parties. In such cases these accounts of exploitation are either self-frustrating or over-demanding. (shrink)

:In this paper I argue that libertarianism neither prohibits exchanges in which consent is gained through deceit, nor does it entail that such exchanges are morally invalid. However, contra James Child’s similar claim, that it is incapable of delivering these verdicts, I argue that libertarianscanclaim that exchanges involving deceitfully obtained consent are morally invalid by appealing to an external theory of moral permissibility.

This paper argues that two single-factor accounts of exploitation are inadequate and instead defends a two-factor account. Purely distributive accounts of exploitation, which equate exploitation with unfair transaction, make exploitation pervasive and cannot deliver the intuition that exploiters are blameworthy. Recent, non-distributive alternatives, which make unfairness unnecessary for exploitation, largely avoid these problems, but their arguments for the non-necessity of unfairness are unconvincing. This paper defends a two factor account according to which A exploits B iff A gains unfairly from (...) B and either A believes that the gains he receives in the transaction wrong B, or A is culpably unaware that the gains he receives in the transaction wrong B. This account avoids the problems of non-distributive approaches and also delivers the intuition that exploiters are blameworthy. (shrink)

The current practices of refugee protection refugees largely leave the burdens of the refugee regime to lie where they fall. Those states which are geographically proximate to refugee-producing regions, already amongst the least advantaged, bear the bulk of these burdens. In this paper, I critically assess two proposals which seek to address this maldistribution: a market in asylum services and a principle of comparative advantage. I argue that from the standpoint of justice, these proposals share two objectionable features. First, they (...) enable relations of domination between states, because they ignore the background relations of inequality upon which they depend for their effectiveness. Second, they institute an injustice of ‘misframing,’ in that they preclude consideration of refugees’ legitimate claims to be hosted (or not to be hosted) in a particular state. The failings of these approaches are illuminating and, I argue, provide us with some theoretical desiderata for a positive account of justice in the distribution of responsibilities to refugees. (shrink)

In this thesis I present a rights-based theory of exploitation. I argue that successful conceptions of exploitation should begin with the ordinary language claim that exploitation involves `taking unfair advantage'. Consequently, they must combine an account of what it means to take advantage of another with an account of when transactions are unfair. Existing conceptions of exploitation fail to provide adequate accounts of both aspects of exploitation. -/- Hillel Steiner and John Roemer provide convincing accounts of the unfairness involved in (...) exploitation, but because they fail to provide restrictive `advantage taking' conditions, their theories of exploitation include cases that we would not ordinarily describe as exploitations. Ruth Sample and Robert Goodin provide accounts that place a stronger emphasis on the attitudes involved in exploitation and the processes that bring it about. Unfortunately, these theories do not properly incorporate the unfairness aspect of exploitation. Consequently, they are either self-frustrating or incomplete. -/- I provide a conception of exploitation that combines both aspects. I claim that a bilateral, strictly Pareto improving, and voluntary transaction t between A and B is exploitative just in case (1) there exists an unrectified property rights violation at some point in the history of exchanges leading to t that (2) reduces B's bargaining power by altering her status quo point, and (3) the degree to which B's preferences are satisfied in t is less than it would be had B's bargaining power not been reduced (by the alteration of her status quo point). Further, (4a) A's egoistic preferences are better satisfied in t because B's bargaining power is limited, and (4b) if the previous conditions also hold for A, then the reduction in A's bargaining power is less than the reduction in B's bargaining power. Finally, (5) A truly believes the previous conditions hold. (shrink)

This paper clarifies the usage of Albert Hirschman’s categories of market behaviour as of exit and voice in debates about workplace democracy by taking seriously his critique of the neoclassical analysis of competition. Pro-market liberals are generally hostile to the idea of workplace democracy and tend to favour top-down hierarchies as a way of organising labour. This hostility is generally inspired by the neoclassical analysis of exploitation and efficiency, which leads them to defend distributions achieved through exit-based competitive equilibria. Following (...) Hirschman, I propose to consider a hypothetical alternative: a democratic equilibrium, reached through the use of voice. I show that it would present the same appealing characteristics than its competitive counterpart while also accounting for the non-ideal conditions in which markets operate. Support for free markets should entail support for workplace democracy minimally understood as a strengthening of voice. (shrink)