Critical thinking and Ethics Assume you are the CMO
for a firm that is a major producer of chocolate candy and baking chocolate. The bulk of your chocolate
products are sold in the United States and Europe.
for many years, your firm has purchased cocoa beans
(from which chocolate is made) from Country A.
Country A produces 30 percent of the world's chocolate but recent reports of child labor have concerned
many country leaders and consumers. On some farms,
children are made 10 work as much as 100 hours a
week and are physically abused. Furthermore, some
receive no education whatsoever. You are considering
whether or not your company should change suppliers
and buy cocoa from Country B. Country Bis the leader
in ethically produced cocoa. Cocoa is produced in an
environmentally sustainable manner and the country
is the world leader of •fair-trade certified" cocoa production. Unfortunately, the price of cocoa from Country B is nearly twice that of Country A. This means
you would have 10 significantly increase the price of
your products which you expect to negatively affect
!he firm's sales. This, in turn would likely lead to closing some company facilities and laying off workers.
On the other hand, consumers in your markets are increasingly concerned about human rights abuses and
seek to buy fair tfade products. Develop your thoughts
on the following:
a. The positive and negative outcomes (in addition 10
those already discussed) of continuing 10 purchase
cocoa from Country A.
b. The positive and negative outcomes (other than
those already discussed) of changing suppliers and
purchasing cocoa from Country B (in addition 10
those already discussed).
c. Which country would you choose using the Utilitarian approach to decision making? Why?
d. Which country would you choose using the Rights
approach to decision making? Why?
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