As a manufacturer of athletic shoes, we have a tangible product, shoes. In the world wide shoes market, we differentiate our product from other companies’ as socially responsible. The purpose of making shoes in other countries is to reduce the cost of the product. Based on the cost, we should accept the contract of moving the factory to China so that the cost of product could get lower. However, our product’s image and performance is widely regarded as socially responsible. To produce products consistent with the mission as the worldwide socially responsible manufacturer, we should strongly consider ethical implications of our business decisions. We should not take the contract. The Chinese government is not democratic yet, and we will only have little or no control over working conditions, sexual harassment, and pollution, and we should not risk company by changing suppliers and also, the working conditions might ruin our image as a socially responsible company.
We should continue the business with Indonesia and South Korea, because we cannot take the political risk and potential damage to our commitment to social responsibility. Even though the Chinese company can offers a cheaper price which could lower the cost of product, we cannot take it because of the company image. the image of the company is important, as I think moving the manufacturing to China will cause more damage by driving away existing customers than the money we could save from making shoes, so continuing business with Indonesia and South Korea is better decision.