Ethics Around the Globe: Projectfor Business and Accounting students
Youare the controller at a medium sized sports apparel company. Your sales managerhas just signed a contract with the US Olympic committee to produce warmweather clothing for the downhill ski team. This contract would increase yourrevenues by 20% for next year as well as create exposure for your name andbrand. In short, you think it would bring in future business. Your businessmodel focuses on American Made products as well as quality.
Asyou investigate the sales manager’s proposal to the Olympic committee you findthat the mark-up on the products is just 10% of total costs. This concerns youbecause on average, your mark-up percent is 40% of total costs. This means ifanything unexpected happens with production, this contract could quickly gofrom being profitable to losing money for the company.
Asyou gather a team to discuss the risks and opportunities associated with thisproject, the sales manager is strongly pushing to accept the contract and to“let production deal with the risks”. The Vice President (VP) of Productionstates that if the cutting and sewing were outsourced to an emerging marketproducer, the labor costs could be reduced and the risk of the project losing moneywould be greatly reduced. He reasoned that the materials are still American made;just the assembly is done in another country. The VP of Production has acountry in mind. The wages paid in this foreign country are one fifth thosepaid in the US and there are no benefits attached to those wages. This countrydoes not impose any tariffs so shipping and importing costs would be very low.The VP’s knowledge is coming from his brother-in-law who works in this country.He could take care of any government fees, setting up the factory and findingworkers. The VP has never seen the workers who would be hired or the workingconditions in the factory.
For this assignment you are revisiting the scenario presented in the Module 02 Course Project assignment (Kantianism vs. Utilitarianism). As you will recall, this is where the company you work for is faced with a decision regarding where to produce the clothing for the U.S. Olympic downhill ski team. Currently, that decision has been postponed so that all facts and stakeholders can be considered.
Reflect on this scenario and respond to the following questions:
- What would the company do if it followed Garrett Hardin’s global economic justice perspective?
- What would the company do if it followed Peter Singer’s global economic justice perspective?
- What do you believe the company should do in this situation? (It would be a good idea to reflect and consider your responses to the previous part of this project.)
This assignment should be 3-5 pages and in APA format.