Ohio Art Cmpany
In this case, Ohio Art Company has moved its production of Etch-A-Sketch toys to Kin Ki Industrial in China. As a result, the company had to laid-off 100 workers located in the town of Bryan in Ohio, United States.
On the ethical perspective, the decision was considered ethical under the perspective of the shareholders of the Ohio Art Company. The company is responsible to maximize its profits. Since the company has been losing sales and profits since 2008, decision makers have to cut losses. The move of Etch-A-sketch productions to China helped saved the heavy salary costs of employees and production costs. Hence in the perspective of shareholders, the decision is ethical.
If the company failed to stop the loss of profits and improve financially, the company may not be able to sustain its operations because they will lose its competitiveness in the toy market. They will be unable to compete with other toy companies who moved their productions to China to reduce costs. Eventually the company will face the threat of bankruptcy and shut down.
The case stated that American workers received monthly salary of USD1,500 along with other benefits such as health insurance, protection by the worker’s union and employment regulations. They are considered as fortunate employees compared with the Chinese workers. It is also considered as ethical to move the production of Etch-A-Sketch to China will give Chinese citizens more opportunities to receive better employment benefits and improve their living conditions.
On the other hand, the decision is also considered as unethical because the move of production led to 100 American workers become unemployed. The laid-off employees then had trouble to make their mortgages for their homes. As a result, these workers have to leave Bryan to seek other employment opportunities.
It is also unethical because the laid-off of the employees result a negative chain reaction in the community. The loss of citizens in Bryan caused the
On the ethical perspective, the decision was considered ethical under the perspective of the shareholders of the Ohio Art Company. The company is responsible to maximize its profits. Since the company has been losing sales and profits since 2008, decision makers have to cut losses. The move of Etch-A-sketch productions to China helped saved the heavy salary costs of employees and production costs. Hence in the perspective of shareholders, the decision is ethical.
If the company failed to stop the loss of profits and improve financially, the company may not be able to sustain its operations because they will lose its competitiveness in the toy market. They will be unable to compete with other toy companies who moved their productions to China to reduce costs. Eventually the company will face the threat of bankruptcy and shut down.
The case stated that American workers received monthly salary of USD1,500 along with other benefits such as health insurance, protection by the worker’s union and employment regulations. They are considered as fortunate employees compared with the Chinese workers. It is also considered as ethical to move the production of Etch-A-Sketch to China will give Chinese citizens more opportunities to receive better employment benefits and improve their living conditions.
On the other hand, the decision is also considered as unethical because the move of production led to 100 American workers become unemployed. The laid-off employees then had trouble to make their mortgages for their homes. As a result, these workers have to leave Bryan to seek other employment opportunities.
It is also unethical because the laid-off of the employees result a negative chain reaction in the community. The loss of citizens in Bryan caused the