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Is it ethical for companies to use unpaid interns if they know they will not have any jobs to offer at the end of the internships?
It can be ethical IF the firm is up front in their providing and understanding to the intern. Listing the job duties and expectations. My daughter did an internship to assist with the restoration of President Eisenhower’s house, she received room and board. There was no false expectation of employment once the project was complete. She went on to add this internship to her resume and it paid off. The conservator she worked for is considered a visionary and highly respected. SO, her internship though it was unpaid, she received priceless training and development from it. This is an example of how an internship at that particular company may be a building block to the intern getting into a better opportunity.
Now if the company has used smoke and mirrors and is leading the intern on, making them think there will be a job opportunity at the end of the internship: this is unethical practice.
Is it ethical for companies to use unpaid interns if the unpaid internships replace paid jobs? Again this can be answered in a number different ways.
Yes it can be ethical. If the company is going under and it is the only way it can survive, yes.
If the company is phasing current employees out, say through their own leaving or retirement and will eventually have a staff of jus interns, I believe this can be ethical as well. As long as there is no strong arming of current works to leave.
If it is just a means to save money and has replaced current workers with inters, then I say No it is not ethical.