Major corporations with overseas subcontractors such as


Major corporations with overseas subcontractors (such as IKEA in Bangladesh, Unilever in India, and Nike in China) have been criticized, often with substantial negative publicity, when children as young as 10 have been found working in the subcontractor's facilities. The standard response is to perform an audit and then enhance controls so it does not happen again. In one such case, a 10-year-old was terminated as a result of an audit by the parent company. This action however created unforeseen problems for the family of the child as well as for the 10 year-old as well as an ethical dilemma for the company. Shortly after the dismissal or termination, the family, without the 10-year-olds contribution to the family income, lost its modest home, and the 10-year-only was left to scrounge in the local dump for scraps of metal. Was the decision to hire the 10-year-old ethical? Was the decision to terminate the 10-year-old ethical? What questions would you ask local management concerning both the hiring and firing process? What other questions might you want to ask local management? As a consultant or manager for the parent company, what would be your recommendation? Answer only what you read in the dilemma. If you do make assumptions then state the assumptions that you have made and state your decision or comments based on that (those) assumptions.

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Operation Management: Major corporations with overseas subcontractors such as
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