Read the Resolving Ethical Business Challenges case at the end of Chapter 10 covering Preet and his responsibilities for AMEX Corp.Resources. In a 2 page (maximum) Word document (double spaced, size12 font, nicely formatted), respond to the end of chapter questions.

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RESOLVING ETHICAL BUSINESS CHALLENGES* After graduating from college and working a few years at "Of course they aren't going to do anything", said a small technology firm, Preet scored a high-level job in Jim, who had been working in the logistics department the logistics department at Amex Corporation. Amex sells for 12 years. "Why should they? As long as the company high-quality electronic products that are extremely popu- gets their shipments, they aren't going to disrupt the prolar among technical savvy young adults. Part of Preet's job cess by requiring major changes." involves working with a team to oversee Amex's contractors Dawn, who had only been working for six months, in China. Amex contracts with factories across Asia to build chimed in. "But Jim, theyhave to do something. From what components for the company's electronics. Preet's team was Preet said, the workers have terrible working conditions." to ensure the shipments were as orderly as possible. Preet's Jim sighed. "Dawn, you haven't been in this busiteam had innovative people, and they performed so well the ness long enough to see how things work. The factory in company began giving them more responsibility, including Shandong really isn't that bad compared to many other solving major challenges that arose within the factories. factories in China. It's not unusual for factory workOne day Preet was to visit the factory in the Shandong ers to work longer hours. Besides, you might think the province of China. Shipments were falling behind schedule, employees there don't make much for the amount that and there seemed to be more accidents occurring there. they work, but it's a lot better than what people get in Preet was to observe the factory and meet with manage- other factories. For better pay people are willing to work ment to determine where the problems occurred. Preet in less than ideal conditions." looked forward to her first trip to China and to actually visit Preet spoke up. "Just because that's normal in the cula factory to learn more about the manufacturing process. ture doesn't necessarily make it right. Many of these prob- When Preet arrived at the airport, the managers of lems could be avoided if the factory ensured their workers the factory greeted her and showed her around. When wore appropriate safety gear and hired more employees." she got to the factory, all of the employees were hard at "The factory probably can't hire more workers", Jim Work. One group of workers cleaned the components said. "Where are they going to get the money?" using special chemicals. Preet noticed they did not wear "Well, maybe Amex should begin paying them protective face masks, even though she knew the chem- more," Dawn replied. "That would translate into higher icals could be harmful if inhaled. When Preet asked wages and the ability to hire more staff." about this, she was told that face masks were recom- "You've got to be kidding!" Jim said. "The whole mended but not required because the chances of getting reason why Amex is there in the first place is because sick from the chemicals were low. labor costs are so cheap. Besides, being able to keep costs As Preet spent time at the factory, she noticed low is the only way to price our products reasonably. more things wrong. She discovered employees, on Consumers want low-priced products." average, worked at least 12 hours per day, sometimes "But consumers also care about how workers are with no breaks. She knew company policy mandated an treated, don't they?" Preet asked. eight-hour work day. Sometimes employees would put "They might show some concern," Jim replied. "But in as much as 18-hour shifts. Preet spoke with one of if it's between higher-priced products or better working the employees who told her on condition of anonymity conditions, I guarantee consumers will choose the latter." that they were denied sick leave. Any perceived idleness on the employees' part resulted in reduced pay. He also informed her there had been several suicides at the plant QUESTIONS | EXERCISES from overworked employees. When Preet asked the 1. Discuss some of the choices of the firm and the supervisor why the factory did not hire more workers, advantages and disadvantages of each. he replied they did not have the money. 2. Describe how Jim takes a cultural relativism approach When Preet returned to the United States, she wrote to the problem. a list of recommendations for improving the factory. 3. Since Amex does not own the Chinese factory, are Later that month, her team met with the company's top they still accountable for the working conditions of its managers in the logistics department. They expressed suppliers? Why or why not? concern about Preet's findings but offered no recommendations for how to fix them. Afterward, Preet com- 'This case is strictly hypothetical; any resemblance to real persons, plained to members of her team. companies, or situations is coincident al