Our company is currently facing a big problem that supply of products cannot satisfy the increasing demand. According to that, the production department advises to expand production of offshore manufacturer. It is reasonable. Because the increasing demand concentrating in some specific areas that maybe far away from the domestic manufacture center, with the increasing oil price, expanding offshore production can save a huge amount of shipping cost. What’s more, offshores in some developing countries can obtain both lower labor and material cost as well. However, the International Operations department considers that lack of auditing would be more problematic than trade-offs between input costs, demand and capacity. In order to stop the supplier
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But it should be conducted in a legal and ethical way. If I am the CEO of this sensor company, I will stop the contract with this current provider and find a new one. Even though we are facing sever situation that the supply is not able to meet increasing demand from both domestic and global. Changing offshore cooperation partner will not only suffer a lot of labor cost for training new workers, but also the production lag. We may lose market shares. It is not effective to send more audit people to the facility. Since the supplier has records of breaking labor laws and making a fake working environment while audit before, it is not creditable. I suggest that we should not cooperate with this supplier any more. We cannot only look at the immediate benefits but the long-term one.
Thesis Statement
I (CEO) should stop the contract with our existing current offshore supplier, enter into a new one with an alternative provider, build company’s code of ethics, provide ethics training and conduct ethical leadership, because the current supplier is not ethical that it has record of breaking labor laws several times and make untruthful audit result, with cooperating with the new creditable supplier and strict ethics regulation, our company can obtain loyal customers, good reputation and many long-term benefits. …show more content…
Once there’s an ethical scandal, it will bring negative effects from media coverage, public criticism, legal and governmental punishment (G.Mehalu & Addis Ababa, 2011). Our existing offshore supplier used to break labor laws that force workers to work overtime without provide good and safe working environment in order to increase productivity and make profit. It did gain immediate monetary value by doing business unethically. However, the reputation of the supplier is bad, in the long run, no one would like to cooperate with it, less skilled workers would like to work for it. The company will be less profitable as time passes. Usually, audit can somehow protect workers from violating human rights by company. However, our current supplier even creates a fake that is good and safe working environment during audit. This intensifies my determination of stopping the contract with it. We should consider ethical reputation of target partners when making decision of whether to cooperate with it. The unethical behavior would be a potential threat to future agency cost and conflict. The loss will be definitely over the previous immediate benefits (Drover, Wood, & Fassin,
But it should be conducted in a legal and ethical way. If I am the CEO of this sensor company, I will stop the contract with this current provider and find a new one. Even though we are facing sever situation that the supply is not able to meet increasing demand from both domestic and global. Changing offshore cooperation partner will not only suffer a lot of labor cost for training new workers, but also the production lag. We may lose market shares. It is not effective to send more audit people to the facility. Since the supplier has records of breaking labor laws and making a fake working environment while audit before, it is not creditable. I suggest that we should not cooperate with this supplier any more. We cannot only look at the immediate benefits but the long-term one.
Thesis Statement
I (CEO) should stop the contract with our existing current offshore supplier, enter into a new one with an alternative provider, build company’s code of ethics, provide ethics training and conduct ethical leadership, because the current supplier is not ethical that it has record of breaking labor laws several times and make untruthful audit result, with cooperating with the new creditable supplier and strict ethics regulation, our company can obtain loyal customers, good reputation and many long-term benefits. …show more content…
Once there’s an ethical scandal, it will bring negative effects from media coverage, public criticism, legal and governmental punishment (G.Mehalu & Addis Ababa, 2011). Our existing offshore supplier used to break labor laws that force workers to work overtime without provide good and safe working environment in order to increase productivity and make profit. It did gain immediate monetary value by doing business unethically. However, the reputation of the supplier is bad, in the long run, no one would like to cooperate with it, less skilled workers would like to work for it. The company will be less profitable as time passes. Usually, audit can somehow protect workers from violating human rights by company. However, our current supplier even creates a fake that is good and safe working environment during audit. This intensifies my determination of stopping the contract with it. We should consider ethical reputation of target partners when making decision of whether to cooperate with it. The unethical behavior would be a potential threat to future agency cost and conflict. The loss will be definitely over the previous immediate benefits (Drover, Wood, & Fassin,