Many companies provide on-site child care facilities for employees' children. In some situations, this service is provided free of charge; in other situations, employees are charged, usually on a sliding-scale basis relative to pay, for such services.
a. If a company provides, but does not charge for, employee child care, the cost of such facilities would be considered a cost center. What potential ethical issues might arise when child care facilities are viewed as a cost center?
b. If a company charges for employee child care, do you think the company should establish a designated percentage of profitability that it wishes to earn on the facilities? Discuss the reason for your answer.