Question

Gamma corporation, an American company, signs a contract with Theta corporation, a company from another nation, where Theta will provide Gamma with certain raw materials. Because of the economy in its nation, there are many more people looking for jobs than there are jobs available. Theta hires employees at extremely low wages and does not maintain facilities up to American standards. Newspapers accuse Gamma of engaging in unethical behavior. Is Gamma's behavior ethical?

a. Yes, because it is good business to maximize profits, and those foreign citizens are better off with a job than without one.
b. No, because Gamma has an ethical obligation to make sure that people who work for them, either directly or indirectly, are being treated fairly.
c. No, because Gamma has a legal and ethical duty to make sure that foreign suppliers maintain working conditions that meet or exceed American standards.
d. Yes, because Gamma cannot be expected to investigate and oversee all of their suppliers, and Gamma is not doing anything wrong.

Answer 1

b. No, because Gamma has an ethical obligation to make sure that people who work for them, either directly or indirectly, are being treated fairly.

Step-by-step explanation:

In the context of productive globalization, it is natural for companies in one country to set up their factories in other countries and to hire companies that outsource their labor. However, contracting companies must maintain the standards of labor rights in force in the country in which employees are hired. A multinational corporation that considers itself ethical has a moral duty to enforce compliance with legislation that protects the welfare of workers.