Yes, companies bear an ethical burden when they contract production to factories abroad and reduce jobs at home.
Because they associate this practice with sweatshops, which are manufacturing facilities in other countries where workers — sometimes even children — receive unfair wages and unfavorable working conditions, some people immediately dislike purchasing their supplies from other countries. This is a major reason why some people immediately dislike this practice.
Businesses that frequently contract out to these foreign countries are the target of negative public relations. Neither are large corporations exempt. Other companies including Adidas, Converse, Abercrombie & Fitch, Victoria's Secret, and Billabong have come under fire. Nike is still attempting to shed its reputation for taking advantage of workers in sweatshops.
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