305 ESOLVING ETHI CAL BUSINESS CHALLENGES from college and working a few years a
ID: 326412 • Letter: 3
Question
305 ESOLVING ETHI CAL BUSINESS CHALLENGES from college and working a few years at firm, Preet scored a high-level job in Of course they aren't going to do anything," sai m, who had been working in the logistics departmen cess by requiring major changes chimed in. "But Jim, they have to do something years. "Why should they? As long as the company ty hnical savvy young adults. Part of Preets job k with a team to oversee Amex's contractors mahes Amex contracts with factories across Asia to build popu gets their shipments, they aren't going to dis Dawn, who had only been working for si s for the companys electronics. Preet's team was Preet said, the workers have terrible working the shipments were as orderly as possible. Preets ve people, and they performed so well the Dawn, you haven't been in this busi ness long enough to see how things work. Shandong really isn't that bad compared to many other in hlges that arose within the factories of China. Shipments were falling behind ng anget was to visit the factory in the Shandong work longer hours. Besides, you mig think the employ schedule, ees there don't make much for the amount that they to be more accidents occurring there. work, but it's a lot better than what peopl the factory and meet with manage factories. For better pay people are willing to o determine where the problems occurred. Preet than ideal conditions forward to her first trip to China and to actually visit When Preet arrived at the airport, the manag. When she got to the factory, all of the employees were ents using special chemicals. Preet noticed they did Preet spoke up. "Just because that's normal in the cul ictory to learn more about the manufacturing process. ture doesn't necessarily make it right. Many of these prob- lems could be avoided if the factory ensured their workers he factory probably can't hire more workers," Jim "Well, maybe Amex should begin paying them rs of the factory greeted her and showed her around. wore appropriate safety gear and hired more employees. Hard at work. One group of workers cleaned the com said. "Where are they going to get the money?" ot wear protective face masks, even though she knew more," Dawn replied. "That would translate into higher the chemicals could be harmful if inhaled. When Preet wages and the ability to hire more staff." asked about this, she was told that face masks were rec nded but not required because the chances of get- "You've got to be kidding!" Jim said. "The whole reason why Amex is there in the first place is because omme labor costs are so cheap. Besides, being able to keep costs low is the only way to price our products reasonably "But consumers also care about how workers are sick from the chemicals were low As Preet s pent time at the factory, she noticed more things wrong. She discovered employees, on average worked at least 12 hours per day, sometimes with no breaks. ste knew company policy mandated an eight-hour work day Sometimes employees would put in as much as 18-hour shifts. Preet spoke with one of the employees who told her on condition of anonymity that they were denied sick leave. hny perceived idleness on the employee's part resulted in reduced pay. He also informed her there had been several ucides at the plant from overworked employees. When reet asked the supervisor why the factory did not hire Consumers want low-priced products." treated, don't they?" Preet asked. They might show some concern" Jim replied. "But if it's between higher-priced products or better working conditions, I guarantee consumers will choose the latter. . Discuss some of the choices of the firm and the advantages and disadvantages of each. 2. Describe how Jim takes a cultural relati 3. Since Amex does not own the Chinese factory, are hore workers, he replied they did not have the money en Preet returned to the United States, she wrote recommendations for improving the factory nth, her team met with the company's top in the logistics department. They expressed reet's findings but offered no recom till accountable for th suppliers? Why or why not? ons for how to fix them. Afterward, Preet com This case is strictly bypothetical, any resemblance to real persons, to members of her team companies, or situations is coincidental.Explanation / Answer
Answer 1.
The various options that can be explored by the company are:-
Option 1
Change the supplier rating system to include parameters which would factor in the safe environment in which the goods are produced.
Advantages of the choice
The suppliers would have to follow the scoring system as non-compliance may lead to loss of valuable business
Disadvantages of the choice
The reports and information are subject to manipulation and would-be difficult and cumbersome to enforce properly.
Option 2
Closely monitor the working condition of the suppliers. It could station a company official in the supplier’s premises and ensure that guidelines are met.
Advantages
It would help to curtail the problem of non-adherence by the Chinese and help improve the image of AMEX.
Disadvantages of the choice
The autonomy of the supplier would be hampered who might see this as an intrusion and is not in good faith which in turn is not good for the long-term business relationship.
Answer 2.
As per cultural relativism, the ethical and moral perceptions of any individual cannot be called as absolute attributes and are more or less shaped by the culture in which an individual lives and is nurtured. As mentioned in the case it can be found that Chinese culture believes in the way the workers work in the factory as per the culture of the numerous manufacturing firms in China. So, Jim’s argument that working more than the stipulated time, under the hazardous condition and without safety equipment is something the Chinese accept without questioning. So, from a cultural relativism point of view height be correct but holistically speaking it can be said that just because people oppose something does not mean that it is not wrong.
Answer 3
Even if Amex does not own the factory it is can be held responsible for its actions because the end users are using the products which are sold by Amex. The branding and supply chain belongs to AmEx so it is their responsibility to ensure compliance.
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