Chapter 6 Critical Thinking Case

Topics: International trade, Economics, Export Pages: 4 (1049 words) Published: October 2, 2010
Chapter 4 Critical Thinking, pg 155

1.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 should the American executive do?[/b]

This is very common in many nations especially those that do not have child labor laws. In this case, the company already knows it is in violation of the company’s prohibition of child labor. The manager should have not hired her but ethically for him it was the moral thing to do to keep her from becoming a “street child.” This becomes a moral dilemma that challenges the ethics of the company and the executive who now knows the situation. In my opinion, both the manager and/or the American executive should seek help from the local officials or sponsor the 12th year old girl in the local orphanage if possible. For the foreign subsidiary, the social and moral responsibility would be to put aside donations to the local orphanage, especially if the subsidiary is part of an American company.

4.Are facilitating payments ethical.

In my opinion, no, but it does happen. Yes, if it’s to cover the cost of expediting a service or product from an international company, but I feel that everything that goes through some form of customs should be processes as received. The Foreign Corrupt Practices Act of 1977 (FCPA) evolved from investigations by the Office of the Special Prosecutor that provided evidence of illegal acts committed by American firms in foreign lands. This is suppose to prevent American companies to making questionable payments to various foreign governments and political parties.

Chapter 5 Critical Thinking, pg 192...
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