The Ohio Art Company's Business Practices Essay example

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1) The main reason for Ohio Art Company’s decision to move its production to china was simply to stay in business. When asked if it was an ethical decision, you must look at the company as a whole and not just the sake of their employees. Even though OAC does have moral obligations to its employees, they also have moral obligations to there stakeholders as well. OAC’s main goal was to keep overall costs for its most popular product the “Etch-A-Sketch” under $10 or else lost money. On an economic perspective, with the move to China Americans would achieve lower prices plus lower overall cost while the move would give Chinese villagers a higher paying job and possibly a better life. A win/win situation if you ask me. Under the Friedman…show more content…
“The righteous moralist claims that a multinational’s home-country standards of ethics are appropriate ones in all countries.” In this case the OAC should stop doing business with Kin Ki due to its labor and human rights violations. But to some people, these poor working conditions may be acceptable in developing countries such as China. The second moralist view: The naïve immoralist states “that if a manager sees that firms from other nations are not following ethical norms in a host country then they should not either.” In this situation, one would think that since China has a bad reputation of violating human rights and using cheap labor through sweatshops, then it would be okay for the OAC to do the same, which is a very bad way of doing business. I think that OAC should make sure that their workers at Kin Ki are being taken care of in and out of the factory, if not then OAC should stop doing business with Kin Ki immediately and end their contract.

3) It is possible for executives from OAC as well as Mr. Killgallon to have no knowledge of labor problems at Kin Ki but it is very unlikely. The only plausible way they wouldn’t have any knowledge of the labor problems is if the company’s executives have never done business or stepped foot into China to see for themselves the poor working conditions Chinese workers face everyday. Usually the top executives would be on top of things and pretty knowledgeable on
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