Assume you are a manager of a large heavy equipment manufact

Assume you are a manager of a large heavy equipment manufacturing company.  Your company currently outsources the manufacturing of a specialized piece of equipment to a firm in another country. The outsourcing of this piece of equipment has saved your organization a considerable amount of money and has increased profits by 15%.   A recent newspaper article has revealed that this firm is paying their employees only a few dollars a day and their employees often work long hours.  While you are not the only company that uses this firm your company was specifically named in the newspaper
article.  You have been asked by your CEO to make a decision on whether or not to continue to do business with this firm.

QUESTIONS :

 1. Discuss the ethics of continuing to do business with this firm.  In this discussion evaluate the economic, legal and ethical issues. Describe how a written code of ethics might impact your decision.

2. Describe any other factors you would consider in making a decision to continue or discontinue doing business with this organization.

3. State the process you would follow to make your decision, provide your decision, and explain the decision making style you have used.

4. Prepare A SWOT analysis of your decision using the following table:

Strengths

Weaknesses

Opportunities

Threats

Solution

The immoral scandals and acts by the institute can picture it to the distrust by public at a point of time and it will not be able to carry on in the long run. Business Ethics means the customs of business which depicts the highest level of integrity and honesty in values in the society. Business ethics include the moral performance which is reliable with the generally accepted business values in society. There are various ethical issues which are faced by the business in its day to day operations.

Ethics in business is the most critical part for an organization and it involves the decision making by various individuals who work for the organization. If the decision made by them is unethical then it will impact the actions and behaviors of various stakeholders of the organization including employees, members, customers, shareholders etc. (Moriarty, 2008).

Business ethics is very important as it creates an ethical culture within the organization and improves the efficiency of employees and management. If the ethics in business is not followed then the business would not be able to survive in the long run. Business ethics can be defined as the perception of correct or incorrect in the business practices and behaviors (Lennerfors, 2013).

Management theories that underlies Business Ethics

The management must consider all the ethical issues at the workplace. The management must be provided a clear and well written code defining and guiding the employees for the ethical behavior at the workplace. The management must disseminate the information relating to business ethics and the codes to avoid concentration in a certain management level.

The competitive advantage of dominance of the company can be improved if the company implements CSR. The violation of social and ethical responsibility can have a drastic impact on the organization and can expose governmental and labor regulations. Thus, the company should ensure to oppose its cost minimization strategy so as to provide enough of margin to suppliers to pay to their labors. This will somehow prevent the labor abuses and will allow the company to sustain in the market for a long term. The cost minimization strategy for the company will have no impact on it sales as the customers would till purchase the product at higher cost but with reduced labor abuse .

Swot analysis:

Strengths - increased profits and savings/

Weaknesses- deteriroration in quality and performance appraisal

Opportunities - Higher profits and higher growth

Threats - labour abuse, unethical business ocnduct, legal issues