Major Corporations with overseas subcontractors (such as Ikea in Bangladesh, Unilever in India, and Nike in Chia) 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. Shortly thereafter, the family, without the 10-year-old’s contribution to the family income lost their modest home, and the 10-year-old was left to scrounge in the local dump for scraps of metal. Was the decision to terminate the 10-year-old ethical? Why or why not?

Major Corporations with overseas subcontractors (such as Ikea in Bangladesh, Unilever in India, and Nike in Chia) 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. Shortly thereafter, the family, without the 10-year-old’s contribution to the family income lost their modest home, and the 10-year-old was left to scrounge in the local dump for scraps of metal. Was the decision to terminate the 10-year-old ethical? Why or why not?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter15: Purchasing Law And Ethics

Section: Chapter Questions

Problem 6DQ

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