7/18/2019 Suggested Answers to Case 1

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Sanny Liao, Brian Chen

BA178 International Business

Suggested Answers to Case 1: Etch-A-Sketch Ethics

uestions 1 ! 1" #ointsa$ %as it ethical o& the 'AC to (o)e *roduction to China+ #oints$

• .e&ine Ethical

o Eg/ 0tilitarian, antian, 2ried(an, etc/• #ro

o Co(*any3s sole res*onsi4ility is to (a5i(i6e *ro&it within legal

constraints

o Co(*any would ha)e gone 4ankru*t i& they had not (o)ed ! would ha)e

hurt co((unity anyway

o #ro)ide o4s to *eo*le who are in worse conditions than A(erican

workers

o 'thers

• Con

o ook away o4s &ro( A(erican workers

o %as not res*onsi4le in their (o)e ! did not e)en guarantee (ini(u(

working condition in China

o 'thers

 4$ %hat were the econo(ic and social costs and 4ene&its o& this decision+ #oints$

• Econo(ic: ena4les 'AC to stay co(*etiti)e9ali)e, *ro)ides o4s to Chinese

workers, *ro)ides chea*er *roducts &or consu(ers, etc/ causes une(*loy(ent in

Bryan, etc/

• Social: destroys Bryan3s co((unity, *ro(otes su4standard treat(ent o& Chinese

workers

•  ;eed to 4alance the )arious e&&ects

c$ %hat would ha)e ha**ened i& *roduction had not 4een (o)ed+ #oints$• Acknowledge that this is a conecture ! i/e/ there are other *ossi4le scenarios

• 'AC (ay lose co(*etiti)eness and go 4ankru*t

• 'AC (ay lose (oney 4ut will look &or alternati)e ways to sa)e (oney9stay

co(*etiti)e

uestion " ! 8 #oints

Assu(ing that the  NYT  re*orting was accurate, is it ethical &or the 'AC to continue

working with in i+

• .e&ine Ethical

• <es/ It is too costly to look &or other *artners, should continue to work with in

i 4ut &ind ways to address the la4or *ro4le(s it3s the cultural nor( etc/

•  ;o/ According to =your de& o& ethical>, it is wrong/ #erha*s 4ecause it3s against

the law, or 4ecause 'AC has res*onsi4ilities to all stakeholders/

uestion ? ! " #oints

Is it *ossi4le that the 'AC did not know a4out the la4or *ro4le(s+

•  ;o9<es

7/18/2019 Suggested Answers to Case 1

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Sanny Liao, Brian Chen

BA178 International Business

•  ;eed to 4ack u* the argu(ent

uestion ! ? #oints%hat ste*s can the CE' o& 'AC take to ensure that the 'AC will not a**ear in the  NYT  

again as an enter*rise that 4ene&its &ro( sweatsho* la4or+

• Contractual sa&eguards ! incor*orate S#ECI2IC la4or conditions into the contractwith in i or their re*lace(ent$

• hreaten to work with other co(*anies i& the a4o)e contractual ter(s are )iolated

• .irectly in)est in *roects to enhance the li)ing9working en)iron(ent o& Chinese

workers

• Engage in acti)e (onitoring o& working condition in China

@eneral Co((ents a4out Cases

• Be o4ecti)e

• %hen necessary, de&ine unclear ter(s

• Answer the uestion

• And only the uestion

–  ;o need to *onti&icate

• Be cogni6ant o& alternati)e argu(ents

• 2acts are your &riends

@''. L0C '; <'0 ;E CASED