This case discusses how labor laws in China provide limited protection for workers, raising ethical concerns when U.S. companies do business with firms located there. (For the case, go to www.cengage.com/management/mathis or visit the instructor companion website.)

1. What obligation does a company like Apple or HP have to ensure that suppliers follow the local labor laws? What should Apple do if it discovers that the supplier is not in compliance with those laws?

2. How should a multinational company like Apple reconcile the differences in labor laws around the world? For example, workers in the United States are provided substantial protection from discrimination and unfair treatment. This is not the case in all nations. If a company like Apple is doing business with suppliers around the world, what standard should be used to evaluate labor practices?

3. As someone who might purchase devices made by Apple, Dell, or HP, how does this treatment of workers at a supplier influence your opinion of Apple and other U.S. companies that deal with such suppliers? Does Apple bear any responsibility for these labor problems because of its quest for ever lower costs?