PRIN.OF OPERATIONS MANAGEMENT-MYOMLAB
11th Edition
ISBN: 9780135226742
Author: HEIZER
Publisher: PEARSON
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Question
Chapter 2, Problem 1ED
Summary Introduction
Summary:
The company is the manufacturer of athletic shoes and is widely regarded as a socially accountable company. But, by being socially responsible they need to handle the increasing costs of their operations.
In order to make reasonable profits, the company has been pushed to compromise the socially responsible practices to ensure that the company is reaping sufficient gains. The Chinese government is repressive and barely a democracy.
To determine: The decision made by the manufacturer.
Expert Solution & Answer
Answer to Problem 1ED
The manufacturer will retain the current practice as it is more important to be ethical rather than having more gains despite carrying out unethical operations.
Explanation of Solution
Decision made by the manufacturer:
The manufacturer has the chance to move its operations to County CN. But, it would mean the manufacturer has to compromise the ethical principles and practices that has been followed for so long.
As a manufacturer I will stick with the existing practice despite incurring more cost it will only affect the company. I would like to uphold the ethical image projected my company and moreover there is no enough input on the working conditions.
The basis of the choice would be to uphold ethical image to the customers. Even though the manufacturer is taking loses, I would take pride in not operating in under such horrific working conditions.
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