International Business: Competing in the Global Marketplace
International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Chapter 5, Problem 1CTD
Summary Introduction

To explain: The possible course of action for the American executive.

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Explanation of Solution

The possible course of action for the American executive:

The situation of child labor is not uncommon in most of the underdeveloped countries. While the manager is right about the possible consequences of removing the girl from the job, allowing the girl to operate as a child labor is not the right thing to do. The notion of the manager is right but the course of action is wrong.

The American executive must look into developing a corporate social responsibility fund to provide free education and livelihood to underprivileged children like her in the area they operate. Regardless of what is the situation admitting the girl as a child labor is wrong. The American executive must take the steps to ensure all these children get the minimum education possible so that they can create their own life.

The actions of the American executive will also bring goodwill among the employees, consumers and other stakeholders. It will also make a strong statement that the company cares about the people apart from generating profits.

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A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company's prohibition on child labor. He tells the local manager to replace the child and tell her to go back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will probably become a street child if she is denied work. What ethical issue is evident in this case?
A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company's prohibition on child labor. He tells the local manager to replace the child and tell her to  go back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will prob­ably become a street child if she is denied work. What ethical issue is evident in this case? ...........
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