Your company is considering establishing a manufacturing operation in Bangladesh in order to take advantage of the
Question:
Your company is considering establishing a manufacturing operation in Bangladesh in order to take advantage of the lower costs of production there. The options being considered are setting up a subsidiary there or contracting with a local manufacturer. Concerns are particularly in regard to human rights issues and corruption issues. Therefore, the proposal is that, by working with a local manufacturer and having strong controls in the supply contract with that manufacturer, you will reduce liability exposure. The supply contract is to include all of the necessary controls to ensure that all human rights issues are properly addressed and corruption will be avoided.
What would your advice be on this issue?
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey