Loading
Avatar
18 Jan 2012 2 Respondents
100%
+25XPRespond to CaseBoard
By David Seedhouse
VX Community
Genius (55502 XP)
Advertisement
http://www.vxcommunity.com/request-a-demo/
ETHICS: EXPLOITATION OR GOOD BUSINESS?

ETHICS: EXPLOITATION OR GOOD BUSINESS?

You own a small company designing and manufacturing top-of-the-range fashion garments for women. Currently these garments are made in Mumbai, in India, and transported to your Sydney depot for sale in shops.

In 2004 the Washington Post reported:

"The wages of Indian textile workers are the second lowest in the world.
An analysis of the wages of workers in a dozen textile-exporting countries found that only Cambodian workers had wages lower than that of Indian workers.

India's annual export of textiles stood at $12.9 billion, with the worker being paid an average wage of $0.38 an hour.

This was only bettered by Cambodia, which had an average wage of $0.32 an hour and exported $1.9 billion worth of textiles."

Recently you have had an offer from a factory in Kabul, Afghanistan, where businesses are being encouraged to grow as Kabul attempts to recover from years of war. This factory is even cheaper than the Indian one, for the same quality, and you estimate that your costs will plummet by 200% if you say yes.

All the workers in the factory will be women and must wear Burqas at work. Women workers earn about 50% less than men.

If you do not move to Kabul your business will be under threat from competitors who can manufacture cheaper. You want to keep making money and you recognise the rights of your shareholders to make a profit.

If you used a factory in Sydney your costs woud be so high that you would go out of business.

What do you do?
It is proposed that you move your manufacturing to Kabul

Key Concepts

Disagreement

Gender

Disagreement