How to Spark Ethical Change in an Adverse Environment

3611 words 15 pages
Ethical Decision Making in A Global Environment:
How to Spark Ethical Change in an Adverse Environment
Ethical Decision-making in Business
Final Exam

The ability to make complex ethical decisions is a crucial skill that must be possessed by managers, especially those who work for global corporations. Doing business internationally provides additional challenges to managers due to cultural differences and increased competition from companies that may possess different ethical standards. The case “This Whole System Seems Wrong: Felipe Montez and Concerns about the Global Supply Chain” provides an excellent example of this dilemma. This paper will analyze, in detail, a specific ethical situation facing Felipe Montez, the Purchasing
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Finally, Felipe must consider the result in the event that the public becomes aware of the practices inside its manufacturers’ facilities, and what kind of message that send to the public, competitors and its employees. The positive outcomes to be gained from forcing changes in the factories are the improved health and safety of employees, at the very least. Furthermore, the housing linked to the factories would be improved. Perhaps additional sources of income or aid could be offered by charitable organizations to offset loss of income after child labor laws are more strictly enforced in the area. From a negative standpoint, Felipe must quit his job if the situation creates such a significant conflict of interest, which puts him at a disadvantage from a financial standpoint. Also, his company stands to lose profit from decreased margins, poor investor relations, or because of negative public perception. Before choosing to force any operational changes, Felipe would have to calculate the potential price increases, the potential margin loss, and numerous other predictions based on how the market may react to higher product prices. However, if Felipe chooses a more proactive path to improve the factory conditions, he must evaluate the likelihood of how many people may lose their jobs, and what impact that may have on the local economy. Taking away a stream of income from a poor area of the world could prove disastrous for the region, and this could have negative


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