Throughout the five-year simulation I found two major economic decisions that I believed to be top priorities for K-Tai moving forward. The first decision I want to discuss is K-Tai’s supplier employee safety concerns that were raised in year three. Health and Safety should come at the top of any companies concerns for ethical reasons and lawsuits especially because it is such a big part of a company’s image. The root of the issue is that the laws differ from the supplier’s country to the United States, so K-Tai had been walking on thin ice when it came to the safety of their supplier’s employees. Another part of this problem can be found as an inability to handle relationships with different types of stakeholders and suppliers that companies
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Any successful company knows that health and safety of their employees is a top priority, those employees are the heart beat to a company, without them you have no product. It is important to note that safe is defined as “complying with government standards” (Starbird) K-Tai’s case is not rare, other companies have to deal with these types of employee safety issues as well. The overseas laws differ compared to the United States and these laws favor U.S. firms because the chemicals and equipment they use are cheaper as well as legal in other countries. As I continued my research on this issue I was founding out that a lot of the times the company itself specifically the CEO has no idea what the work environment is like, they rely on auditors and their subcontractors to make sure everything runs smoothly. When I say run smoothly, that usually means quickly. Not many companies want to deal with issues that aren’t in their country and situations that they don’t have complete control over. One of my findings was from 2012 in Bangladesh where audits came to a factory which made sweaters for many companies across Europe and the U.S. There are usually twelve major categories for approval and over a …show more content…
Many companies goal is to increase revenue every year, K-Tai made it a top priority to become a leader in ethical development. Sometimes quick development can leave room for error in specific areas of business as we saw in year 2 of the simulation with K-Tai’s issue in the Middle East where the building contractor and site manager received excess money and information was leaked, again tainting the ethical standing of K-Tai. Although any improvement, like ethical issues or revenue will be a stakeholder’s top priority in choosing whether they want to invest or not, how fast a company grows can also show investors that the products demand is very high which can raise interest. Similar to the last situation I talked about with auditors speeding through inspections, that may not be the only thing companies are trying to speed through. Many of these U.S. firms want to expand as quickly as they can by opening up factories in these poor countries because they believe that they are at least creating jobs for these people who don’t have much of an education. What happens when production outpaces the building of these factories? As I furthered my research I found an article from the Wall Street Journal where Syed Zain Al-Mahmood had a similar conclusion that was brought forward. It seems that there has been a recent growth in
Any successful company knows that health and safety of their employees is a top priority, those employees are the heart beat to a company, without them you have no product. It is important to note that safe is defined as “complying with government standards” (Starbird) K-Tai’s case is not rare, other companies have to deal with these types of employee safety issues as well. The overseas laws differ compared to the United States and these laws favor U.S. firms because the chemicals and equipment they use are cheaper as well as legal in other countries. As I continued my research on this issue I was founding out that a lot of the times the company itself specifically the CEO has no idea what the work environment is like, they rely on auditors and their subcontractors to make sure everything runs smoothly. When I say run smoothly, that usually means quickly. Not many companies want to deal with issues that aren’t in their country and situations that they don’t have complete control over. One of my findings was from 2012 in Bangladesh where audits came to a factory which made sweaters for many companies across Europe and the U.S. There are usually twelve major categories for approval and over a …show more content…
Many companies goal is to increase revenue every year, K-Tai made it a top priority to become a leader in ethical development. Sometimes quick development can leave room for error in specific areas of business as we saw in year 2 of the simulation with K-Tai’s issue in the Middle East where the building contractor and site manager received excess money and information was leaked, again tainting the ethical standing of K-Tai. Although any improvement, like ethical issues or revenue will be a stakeholder’s top priority in choosing whether they want to invest or not, how fast a company grows can also show investors that the products demand is very high which can raise interest. Similar to the last situation I talked about with auditors speeding through inspections, that may not be the only thing companies are trying to speed through. Many of these U.S. firms want to expand as quickly as they can by opening up factories in these poor countries because they believe that they are at least creating jobs for these people who don’t have much of an education. What happens when production outpaces the building of these factories? As I furthered my research I found an article from the Wall Street Journal where Syed Zain Al-Mahmood had a similar conclusion that was brought forward. It seems that there has been a recent growth in