Question

Gamma corporation, an american company, signs a contract with theta corporation, a corporation 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?

Answer 1

Assuming the options are:

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

The answer is B. Gamma has a responsibility to ensure that its workers, including those working indirectly for the company, are being treated fairly. This is a key ethical concept in international business, and often a source of controversy, as many large American companies outsource low-cost labor, and often the conditions that these employees work in are far from fair.