Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $100 a month to assemble them. You also know that human rights advocates recently accused a competing shoe manufacturer of engaging in exploitative labor practices because the manufacturer sold shoes made by Indonesian women for similarly low wages. You personally do not believe that paying $100 a month to Indonesian women is unethical because you know that in their country, $100 a month is a better-than-average wage rate.

Write 1-2 paragraphs explaining whether you would have the shoes manufactured in Indonesia and make higher profits for the company or avoid the risk of negative publicity and its potential adverse consequences for the firm's reputation. Are there other alternatives? Consider the impact of the route you choose and short-term vs. long-term profits, as well as the ethical decision making criteria.

On one side (the good and righteous side), if you do not produce shoes in Asia, your long term survival economic is doubtful, but people view your company as a company that does the right thing no matter what. Will it increase sales? Theoretically it should, but in practice it doesn't. Are Nike sales hurt because each shoe is produced in an Asian country that pays $0.25 per day? No, they aren't. The same applies to Reebok, Adidas, Puma, New Balance and every single major shoe manufacturer in the world. Bad press hurt tuna back in the 80's, but some companies are not affected by it.

The alternative (the evil, dark side of the force side) results in your company being able to survive on the long term. It will not necessarily mean that your company will grow and become the world's largest shoe manufacturer, but you will be able to survive and continue to operate.

There is also a trick that you can use to avoid reputational damage and bad press, and that is to establish a foreign subsidiary in Indonesia using a different name. Then your foreign subsidiary sells you the manufactured goods, and the blame fall son the subsidiary. Believe it or not, that simple solution is used by most corporations including clothing manufacturers, electronics, toys, etc.

If you analyze this from an ethical point of view, the alternative is much simpler. Producing in Indonesia (or India, or Burma, or Pakistan, or Vietnam, etc.) and paying a $100 salary will allow a family to live a very decent life and probably even prosper. They will have a much better lifestyle than the rest of their neighborhood. Each Indonesian worker represents one less poor family in Indonesia. On the other hand, American families will probably get hurt, but it is also much easier for an American worker to get another job that pays a normal wage (in US standards) and allows them to live well.

suchetasVT suchetasVT · Answer 2 · 2022-04-07T18:42:24+02:00

Business ethics applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organization.

What is business ethics?

Business ethics is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment.

If you analyze this from a business ethics point of view, something else is much simpler. Producing in Indonesia (or India, Burma, Pakistan, Vietnam, etc.) and paying a $ 100 salary will allow the family to live a dignified and possibly successful life.

They will have the best way of life possible. Each Indonesian worker represents one of the poorest families in Indonesia.

On the other hand, American families are more likely to be harmed, but it is also much easier for an American worker to find another job that pays the normal wage (according to US standards) and allows us to live a normal life.

Hence, this is the right approach to following ethics in business wherein the business focuses on the right path for its growth and survival in the market. Paying $100 to Indonesian workers and producing the shoes will give them a stable life to lead.

To learn more about business ethics, refer:

https://brainly.com/question/8594181