Etch-A-Sketch Case – International Ethics
Everywhere around North America, companies are outsourcing local operations to China and other countries. This case focuses on the move of the Ohio Art Company (OAC) from Bryan, Ohio to Kin Ki, located in China. Throughout this case analysis we are going to focus on the decision to transfer operations to China from a business ethics standpoint. We will review the economical, ethical and strategical decisions and suggest some possible ways to ensure they are taking the necessary steps to remain as ethical as possible.
Trade Policy in the United States is allowing companies to pick up and move operations to China and other countries. Many questions are not answered before companies make the decision to leave. In cases where companies are moving to China, which are home to a large number of sweatshops, ethics is a major factor. Because of Free Trade in the United States, companies are able to take advantage of low labour costs and sweatshop factories in places such as China. In an article consisting of dialogue from a Senate Meeting on Trade Policy in the USA in 2007, they stated that the Trade Policies in the United States are not working. Manufacturing jobs create middle-class lifestyles for members of the community in which they are located and when companies move operations to places such as China, they are removing jobs from the heads of middle-class families. There are many cases all over the USA of companies picking up and outsourcing to China and other low labour cost countries. Every time this happens, it devastates communities as hundreds and sometimes thousands of jobs are lost. This causes depression and home foreclosures just as in this case. Sometimes companies are left with no choice and the move is a must.
China has in place many laws and regulations regarding acceptable labour. Laws regarding employee wages, over-time rates, hours of work and working conditions are...