An Ethical Case Analysis on China CompaniesThe primary issue is whether to clamp down suppliers use of cheap labor and unsafe work conditions (sweatshops) to manufacture the clothes (keeping costs low equates to high profit) versus operating an ethical business.
Stakeholders involvedTheir rightsShareholdersRight to company profits and to expect company to behave according to ethical standards so that brand image is maintained and profits continue to roll in
EmployeesRight to be treated fairly in their jobs and to be compensated appropriately for their effortsSuppliersRight to earn profits that is expected from agreements with companyCustomersRight to expect that the products they are buying does not cause harm in the production process.Government and pressure groupsRight to boost economy growth and ensure citizens of its country being taken care of and right to voice their views on what they believe, equal rights of fair treatment of workers
Potential alternatives and consequences:1. Continue to work with suppliers that can provide manufacturing at cheap prices with no regard to the working conditions:This will benefit shareholders and suppliers (low costs) on the expense of employees (low pay). However based on utilitarian viewpoint, the company should not take this position as the employees will suffer more from the low wages and financial difficulties on top of the potential health and safety risk. Given that these workers have no freedom of association to form trade unions and the Government carry out regular crackdowns on non-governmental labor organizations , they are in a position of being exploited. In the long run, if exposed, Raouls brand image may be damaged and ethical-thinking customers may turn their back on the
2. Continue support of the Labor Council, which is in a minority in the United States at the moment. Given the lack of any significant government pressure, the potential problems will only grow as more and more workers join the work force. Such work and support could become an extremely powerful and significant lever through which to boost the working conditions of the entire workforce.3. Support of the Fair Labor Standards Act, which protects employers from unfair practices in the workplace. With the passage of this act, workers will face a fundamental shift in culture. They will no longer feel that their unions have been cheated, nor that their representatives were illegally made to do so. They will simply find that they would be protected from discrimination. The issue will not only be solved by reducing the need for union-represented staff to work but it will also be a matter of urgency. With all the attention and focus, we can put pressure on the Government – it has already done the “solution” and “control”.4. End support for the European Banking Authority, which is the largest regulator of banks but is not a source of financial sector financial regulation. With this new policy the banking authorities are facing pressure on their own.5. Support the European Commission, which is already facing criticism for its decision to allow certain eurozone Member States to impose conditions on banks, especially of German firms. Because of this, the UK government has threatened to “put pressure” on the European commission to adopt a new policy to prevent such an outcome because of the lack in financial oversight.6. Strengthen the public sphere so that public opinion and the public interest are of utmost concern. With the passing of this new law, you will get the certainty on what goes down in the public sector that you already have. Your employees will be given the same chance to participate in the democratic process and you will get the same rights that you received when you joined the union. The work environment will no longer be compromised by the new law, nor will it be compromised by the restrictions on private enterprise.7. Support the European Stability Mechanism and the Economic and Fiscal Partnership on the principles of sustainable growth, competitiveness and competitiveness which will guarantee prosperity and peace to all. For now, I would like to remind you of the fact that the European countries were able to secure the accession to the euro. In the future, they may not have been able to fully understand this objective, but their attempts are still being made and they are making progress.8. Support for the European Council, a European institution that is responsible for international affairs, where the EU Council may use an impartial and effective authority to manage the financial regulation, and where the EU is obliged to report its reports before any international financial institutions and that monitors all financial institutions with their own independent verification and transparency mechanisms.9. Supporting the European Commission – we believe that European institutions have always played the key role of the world’s policeman. The Council is one example of the importance of our commitment to promoting the rule of law and the rule of law in the European Union. The Council has the greatest expertise and influence at every level. The Council has taken all necessary measures in its own right to monitor institutions, develop cooperation treaties for the protection, reform and implementation of law