
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Case Analysis. Read the cases given below. and answer the questions for each case. Make sure
that in answering you cite an ethical basis Ex: "Principles of Accountability further prove that
the action waRS...." You will be graded accordingly and based on how you defend your answer.
A rubrics is provided for your reference. All answers for the case analysis shall be written in a
yellow pad paper.
Case #1: Apple Inc. and Underaged workers
Cunnie Guglielmo, a reporter for Bloomberg news services, begins an article on Apple this way: "Apple
Inc. said three of its suppliers hired 11 underage workers to help build the iPhone, iPod and Macintosh
computer last year, a violation it uncovered as part of its onsite audit of 102 factories."
Her story adds details. The underage workers were fifteen in places where the minimum legal age for
employment is sixteen. She wasn't able to discover the specific countries, but learned the infractions
occurred in one or more of the following: China, Taiwan, Thailand, Malaysia, Singapore, South Korea, the
Czech Republic, and the Philippines.
Following the discovery, the employees were released, and disciplinary action was taken against a number
of the foreign suppliers. In one case, Apple stopped contracting wvith the company entirely.
The story closes with this: "Apple rose $2.62 to $204.62 yesterday in Nasdaq Stock Market trading. The
shares more than doubled last year.
Questions:
1. The ethical question is whether Apple ought to contract (through suppliers) fifteen-year-olds to work on
factory floors. Is the fact that the stock price has been zooming up a pertinent fact, or does it not affect the
ethics? Explain.
2. Assume that in the countries where fifteen-year-olds were working, it's customary for children even
younger to earn an adult-type living.
a. What is an advantage of following the local customs when making economic decisions like the
one confronting Apple?
b. Does the custom of employing young workers in some countries change your ethical
consideration of the practice in those places? Why or why not?
21Page
Shot on Y11
Vivo Al camera
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