They were made in mockery of the Elves and were puppet-slaves (because of fear for) Morgoth and Sauron. Despite how "evil" they were, Tolkien liked to think that even Orcs weren't beyond redemption:
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They would be Morgoth’s greatest Sins, abuses of his highest privilege, and would be creatures begotten of Sin, and naturally bad (I nearly wrote ’irredeemably bad’; but that would be going too far. Because by accepting or tolerating their making - necessary to their actual existence - even Orcs would become part of the World, which is God’s and ultimatly good.)~Letter #153
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