Question

CASE 2 – Ethical Dilemma As a manufacturer of athletic shoes whose image—indeed performance—is widely regarded as socially responsible, you fi nd 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 labor-cost differential between your current 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. Please cite sources used to answer the questions.

Answer 1

The subject of this question is the ethical dilemma faced by a manufacturer of athletic shoes. The company is considering outsourcing production to China to reduce costs, but this raises concerns about the treatment of workers.

Step-by-step explanation:

In this case, the subject is related to the ethical dilemma faced by a manufacturer of athletic shoes. The company is experiencing increased costs due to rising wages in its traditional manufacturing countries. As a result, the company is considering outsourcing to China where labor costs are lower. However, this raises concerns about sweatshop labor and the mistreatment of workers in the manufacturing process.

The main ethical issue revolves around the company's responsibility towards its workers and the possible negative consequences of outsourcing to cheaper labor markets. It is important to consider the impact on workers' wages, working conditions, and overall well-being. Companies like Nike have faced criticism in the past for using sweatshops, which increases the importance of addressing these concerns.