Ethical dilemma
As a manufacturer of athletic shoes whose image, indeed per-formance, is widely regarded as
socially responsible, you find your costs increasing. Traditionally, your athletic shoes have been
made in Indonesia and South Korea. Although the ease of doing business in those countries has
been improving, wage rates have also been increasing. The labour-cost differential between your
present suppliers and a contractor who will get the shoes made in China now exceeds $1 per
pair. Your sales next year are projected to be 10 million pairs, and your analysis suggests that
this cost differential is not offset by any other tangible costs; you face only the political risk and
potential damage to your com-mitment to social responsibility. Thus, this $1 per pair savings
should flow directly to your bottom line. There is no doubt that the Chinese government engages
in censorship, remains repres-sive, and is a long way from a democracy. Moreover, you will have
little or no control over working conditions, sexual harass-ment, and pollution. What do you do
and on what basis do you make your decision? With a Christian worldview
socially responsible, you find your costs increasing. Traditionally, your athletic shoes have been
made in Indonesia and South Korea. Although the ease of doing business in those countries has
been improving, wage rates have also been increasing. The labour-cost differential between your
present suppliers and a contractor who will get the shoes made in China now exceeds $1 per
pair. Your sales next year are projected to be 10 million pairs, and your analysis suggests that
this cost differential is not offset by any other tangible costs; you face only the political risk and
potential damage to your com-mitment to social responsibility. Thus, this $1 per pair savings
should flow directly to your bottom line. There is no doubt that the Chinese government engages
in censorship, remains repres-sive, and is a long way from a democracy. Moreover, you will have
little or no control over working conditions, sexual harass-ment, and pollution. What do you do
and on what basis do you make your decision? With a Christian worldview
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