Ethical Dilemma: Because of low costs, your company has established a manufacturing subsidiary in Southern China. At the local minimum wage, employees work 10-hour days (sometimes 12-hour days due to mandatory overtime), 6 days a week. The factory does not adhere to the same standards for environmental protection and employee safety as those mandated in the U.S.A. You are concerned with the substandard working conditions and environmental protection and ask the expatriate manager heading operations if something should be done to improve conditions. He argues that he is complying with all local regulations and laws. Moreover, he notes that the company established this subsidiary to have low-cost manufacturing base. Improving working conditions and environmental standards beyond those mandated by local laws would not be consistent with this goal. Is his position ethical? What are the potential negative consequences of continuing operations in this manner? What benefits might there be to improve conditions beyond local standards? Looking at the business ethic perspective -How would you handle this situation and why?