One day you see Tom, the foreman, speaking to your immediate supervisor in the corner of the factory floor. As you come closer, your supervisor waves to you to join them. She tells you that she does not want the boxes of products with red stickers thrown out. She gives you the contact information of the head of a supermarket in San Lopez and tells you to sell the merchandise at reduced prices there. You immediately wonder if this is product dumping. Delectables needs to convert every product it makes into cash, she explains. There is no inspection system in San Lopez. It is also highly unlikely that Delectables would be linked to any sickness, since gastric diseases are more common there. She sees the look on your face and adds that the prevalence of disease in San Lopez makes it much more likely that San Lopezians will have developed higher levels of natural immunity to parasites and bacteria like salmonella than Americans, who are not exposed to as many contaminants. San Lopezians are exposed to numerous parasites and worms that are far worse than salmonella; and many people there eat what Americans regard as contaminated foods on a daily basis without any serious ill effects. Delectables' products, even if contaminated, are superior in quality to most processed foods available in San Lopez. Moreover, studies suggest that the poor in San Lopezians are generally deficient in protein. Delectable's peanut butter is high in protein, thus meeting a nutritional need.
Questions
1. What are the legal and ethical issues, if any, raised by the supervisor? Please include in your answer a consideration of the following: evaluate the supervisor's arguments using the international business ethics theories and models that you learned.
2. The initial question was about dumping red sticker products in San Lopez. Would your analysis differ if the order was to dump yellow sticker products? Explain.