- 15,041
This very question/dilemma was the topic of an assigned paper in my Ethics class as part of my MSBA program.
The conclusion I reached was that it was indeed unethical to pay such low wages, knowing that you were supporting continuing poverty in a third-world country.
On the other side of the coin, if you don't do it, someone else will, which puts you at an economic disadvantage. Now we can discuss the ethics of letting your kids go hungry.
I would say you reached a very poor conclusion then.
The average household income in the Philippines in 2015 was 267,000 pesos. The current exchange rate is 50 to 1. So 3 USD an hour and a 40 hour workweek, working 50 hours a week is 300,000. Meaning this person is earning well above the household income, assuming they are getting enough work.
Cost of living is relative. What is needed in one location may be more or less than what is needed in another.