1. Using any three approaches to International Business Ethics, analyse the ethical issues raised by this report.
2. Using your analysis in question Q7a, state what you think the supermarket ought to do in respect to this supplier. Give reasons for your answer.
1. As per the article by Weiss (2014) business ethics has emerged as one of the major factors that every organizations has to follow in order to utilize all its operational processes effectively. The case study highlighted several factors that have created serious ethical issues for the organization.
Cultural relativism represents the view that every custom, belief and ethic is relative to the individual within the social context. As per the article by Hoffman, Frederick and Schwartz (2014) cultural relativism varies from one society to another, as there is no existence of a universal moral standard. From the above case study, it can be identified that StitchCo does not focus too much on the maintenance of the cultural ethics. For instance, the case study highlighted that StitchCo utilizing underage workers for fulfilling requirements of their operational process. However, the study also have mentioned that children are the only income source of their family. Furthermore, it also has been identified that the company is not focusing on the minimum wage payment in order to enhance the profit level.
As per the article by Hartman, DesJardins and MacDonald (2014), a righteous moralist claims that a multinational standard of ethics is appropriate one for the organization to follow in different countries. For instance, forced unpaid overtime has been regarded as one of the major ethical issues regardless of boundaries. From the case study, it can be assessed that the organization is focusing only on enhancing the profit level of the organization. However, utilizing unpaid overtime actually affects the motivational level of the employees and also affecting the morality of the business. Furthermore, not providing minimum wage can also be considered as a righteous moralist issue. Now, minimum wage standard varies from one country to another, but it is necessary for the organizations to maintain the minimum wage standard in every country. From the case study, it can be assessed that the company is also not focusing on the health safety issue (Peterson and Ferrell 2016). Almost every economy utilizes similar types of safety standard that organizations have to follow in order to maintain the rights of the employees.
As per the article by DesJardins and McCall (2014) a Moral Universalist represents a meta-ethical position that is applicable for all the people regardless of their country sex, religion, race, culture. From the case study, it can be assessed that StitchCo is not providing too much focus on the maintenance of the morality. For instance, the company is utilizing forced unpaid overtime, poor health safety conditions in order to reduce the operational cost of the organization so that it does not have to charge high prices for the T-shirts. Furthermore, the case study highlighted that the job security of the workers is also at the minimum level.
Thus, it highlighted the fact that the company is not focusing on several ethical issues that might actually hamper the operational process of the organization.
2. From the above analysis, it can be assessed that supermarket has to consider several factors in order to conduct business with the supplier. As per the article by Crane and Matten (2016), business ethics plays a crucial role in developing a strong corporate relationship. However, the case study highlighted that the supplier is not focusing on any of the ethical issues at the time of manufacturing the T-shirts. Therefore, I believe that supermarkets have to take a strong action against this unethical approach. However, unethical practices not only affects economical condition of the workers but also damages the overall image of the supermarkets. Therefore, it can actually create adverse impact on the businesses of the supermarket.
Therefore, I believe that supermarket have only two options to choose from. Firstly, the supermarket can terminate the supply agreement with StitchCo. However, conducting business with unethical practices can affect the brand value of the organization. However, 1500 workers will lose their job, if the supermarket cancels the business agreement with StitchCo. This can create an adverse impact on the ethical maintenance of the supermarkets. Therefore, I recommend that the supermarket will have to induce StitchCo to implement a much more ethical approach at the time of developing the T-shirts. In fact, I believe the supermarket will also have to provide financial support so that it can able to utilize modern technologies at the production process. I believe that if StitchCo can able to utilize high-level technologies effectively, workers need not to be forced for working additional hours without any financial benefits. Furthermore, it will help StitchCo to increase the health safety level of the workers and also workers will feel more secured about their jobs. This eventually will help the organization to enhance its brand value in the market.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
DesJardins, J.R. and McCall, J.J., 2014. Contemporary issues in business ethics. Cengage Learning.
Hartman, L.P., DesJardins, J.R. and MacDonald, C., 2014. Business ethics: Decision making for personal integrity and social responsibility. McGraw-Hill.
Hoffman, W.M., Frederick, R.E. and Schwartz, M.S. eds., 2014. Business ethics: Readings and cases in corporate morality. John Wiley & Sons.
Peterson, P.E. and Ferrell, O.C., 2016. Business Ethics: New Challenges for Business Schools and Corporate Leaders: New Challenges for Business Schools and Corporate Leaders. Routledge.
Weiss, J.W., 2014. Business ethics: A stakeholder