Table of Contents
Introduction to the Case 3
Analysis of the alternative # 1 3
Analysis of the alternative # 2 4
Analysis of the alternative # 3 5
Conclusion 7
References 8
Introduction to the Case
This case analysis concerns the question: "You are the owner of a major garment retailer in a buyer-driven commodity chain. The garments you buy, brand, and market are produced in independently owned factories in Thailand. These factories have been producing high-quality, low-cost garments for the past year. However, you have recently discovered that these factories employ child labor and have very unsafe working conditions. What should you do? What are your options?"
This is a very important ethical issue that can shape the corporate culture of the organization. There are a few decisions that the organization must make to establish this internal culture and external image to the world. The results of the actions taken in reference to these decisions could not only change the corporate culture, but they could have an effect on the bottom line that could become a controversy within the organization stakeholders.
Analysis of the alternative # 1
The first step in the resolve of these issues is to determine whether your firm approves of the practices of these independently owned factories in Thailand. Many of your competitors overlook such practices in order to purchase merchandise for a lower price. If your company is only in business to sell the highest quality product at the lowest price at any ethical expense, then you look the other way, say nothing and do nothing.
If this alternative is chosen ...