Answer: Ohio Art Company’s Decision Essay

Most of you did well on app arnt motions 3 and 4, so here I post tot whollyy sample answers to questions 1(a) & (b) and 21(a) & 1(b) nous on whether despicable intersection to China is good Question on the economic and companionable costs and benefits of such a move.Sample attend (A)Note this student earned high grades for looking at the write up from multiple perspectives, for looking at the benefits and costs to all major stakeholders, and for acknowledging that moving productions overseas is a controversial topic. Excellent use of facts to support his/her claim.1. Whether or non Ohio stratagem Companys end to shift production offshore was ethically wrong is a controversial topic. In rigorously business terms, Ohio Art Company (OAC) did not break any laws or perform an illicit act OACs decision to offshore was superstar that had few other options if the companion did not find ways to dismantle production costs, the company would father eventually g iodine bankrupt . If production had not been moved, OAC would cook been futile to commence production costs, and would therefore be unable to generate enough profits to strain business. Either way, OAC employees would have suffered put-on losses. Furthermore, OACs decision benefited shargonholders, which is one element of judging an ethical decision there be no shopworns that prohibit off shoring. However, OACs obligations to its employees are something that must be considered as well. The company, which is perceived as a family, should not just abandon its employees it this sense, the company holds moral obligations and involvement practices which complicate the question of whether outsourcing is ethical.Sample Answer (B)Note This student combined 1(a) and 1(b) but compel it perfectly clear. Again, the student considered the question of ethics from multiple perspectives, and weighed the benefits and costs to respective(a) stakeholders and intelligibly defined what standards (s)he adopte d.1. The question asked is the one about social responsibilities of corporations. Nevertheless, forwards making an ethical judgement, one has to look at the decision from at least three perspectives economic, social and macro-level. On the one hand, it is possible to retell a lot of economic benefits for both the US and China. Ameri bath consumers gained lower prices (an increase in wealth) and poor Chinese villagers were able to move from the destitute countryside and start a new life in cities1. Furthermore, Ohia Art did not go bankrupt, which means that the company and its owners are still a microbe of revenue for the federal and state government.As to social costs (here the social responsibility of an employer comes into discussion), the closing of a factory resulted in the collapse of the topical anesthetic community. Furthermore, 100 workers lost their jobs and this number is big if we take into account that Bryan has only 8,000 inhabitants. Such a conduct of a company can be considered a violation of ethical obligations springing from the position of the company. Nevertheless, the company did not make any abrupt changes. Moving out of Bryan was gradual and most workers were in all likelihood able to find new jobs2. Moreover, even though the company does have social obligations, the Friedman Doctrine is at least partly relevant a company has to seek profits in order to survive. Summing up, in order for the decision to be ethical, the company should seek profits, but also denigrate social and this is what Ohio Art surely did.Question 2 Whether it is ethical for Ohio Art to continue employing KinkiAnswer ANote This student acknowledges that there are many ethical standards, not all of which lead to the same conclusion. S(he) clearly shows how the same set of facts can lead to divergent conclusions.This issue can be analysed from multiple perspectives. From the cultural relativist point of view, the fact that the Chinese regimen turn a blind eye to such practices means that the company should do the same. According to the effectiveeous moralist perspective, the company should desist cooperating because doing so would be applying double standards. The proponents of the nave immoralist views would claim that since the Chinese businessmen have problems with property rights or keeping the RMB undervalued, western employers should not comply with ethical standards in China. Nevertheless, since the view that valet de chambre rights are undeniable rights of every human being is now widespread (judging on the number of NGOs and governments supporting such a view), it seems to be reasonable to assume that human rights are a benchmark of what constitutes business ethics. From this follows that the Ohio Art should desist cooperating with Kin Ki, because the contractor violates elementary rights of the workers as enshrined in the United Nations Universal Declaration of Human Rights (e.g. the right to just and favourable remuneration).A nswer BNote Very careful analysis that considers the different economic situations in different countries.Assuming that the unrelenting working conditions of Kin Ki employees is true, it seems unethical for Ohio Art Company to continue manufacturing with Kin Ki. Again the clear line between what is ethical and delightful is hazy. However, Ohio Art Company secured a contract on the grounds that employment practices were acceptable, and human rights were enforced. The living conditions of Kin Ki employees are far from congruous living conditions employees are exploited, work long hours, paid below standard requirement, and live in impoverished conditions. It also seems as if labor unions are implicitly forbidden (though not formally stated). The question of how much variability is acceptable between living conditions between the U.S and China still exists, however, it seems that primary human living conditions are being denied at Kin Ki. 1 In general, outsourcing seems to be a general trend of globalisation. The division of labour is one of the greatest inventions of humanity and now it is rapidly spreading into the international area. As the Ricardian model of trade predicts, the division of labour will benefit all sides in the long term 2 The other question is whether the company should digest their employees with a training so that they can find new jobs, or whether training programmes should be financed by the state as in a Dutch-Danish flexicurity model. I would say that a company having financial problems (which is the reason for outsourcing) should not be forced to incur further costs.