Case Study: Walexron And Child Labor

872 Words 4 Pages
Walrexon stores in Indonesia employee children and work them for long hours in poor environments. A TV ad recently reveals the conditions of these employees and Walexron seeks to find the legal and ethical issues that correspond to their predicament. Section 307 of the Tariff Act of 1930 prohibits the importation of merchandise produced by convict labor, forced labor or child labor (Bagely, 2015, p. 771). So, if Walexron imports the goods that the children are making, they breaking the law by importing their goods from Indonesia that have been produced by child labor. Furthermore, non-US citizens that are working for multinational companies outside the United States are not covered by United States Equal Employment Opportunity laws (EEOC, 2003). …show more content…
To prevent future occurrences, Walexron should not chance any safety issues, no matter how unimportant they seem. They should put safety first, which will show their consumers that they put them first. Employees should not be able to hold enough stock in the large company so issues that like those of Lis and Denaly would not affect other stock holders. While the situation is unfair, if their share of stock was held to a minimum the situation could have gone undetected. In the future Walexron should enlighten their employees on the issues of insider information. Silver Wing Aircraft knew what it was doing when it sold the tug for less than market value. It was neglectful towards Walexron. Unfortunately, Walexron cannot really fend itself against these ethical bankruptcy issues, except by loaning to more creditable companies. They could prevent future issues by looking into the profitability of the company and learning more about its structure. Also, Walexron should be more explicit in its contracts. This would prevent communication issues such as the email correspondence between Toy Surplus and Walexron. In the case of bribing officials, the Walexron employee should have had training which covers the employment implications and legal issues regarding their actions. Walexron should also have a tighter control on the budget and know exactly where money is coming and going, this could prevent future occurrences or at least alert management when occurrences like this are happening. Although not necessarily illegal, Walexron should understand the ethical issues when it comes to child labor. To prevent an increase in media coverage on the issue and customer recoil, Walexron should make it publically know that they are going remodel the way they employee and treat their employees in foreign countries. While minimum wage may not be necessary,

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