Ethical/Unethical Dilemma
Ethical dilemma
Ethical dilemmas are a common issue for Apple Company. Recently there has been complains that one of their suppliers is using a chemical n-hexane that has poisoned 49 of its workers. Another issue that came up after that was that some of its suppliers use child labor in making of their products. These problems are seen as ethical dilemmas which can affect companies that use suppliers where there is a lax in regulation which can bring about a great amount of damage to the company's brand and the products it makes.
The solution to child labour is basically to fire the underage employees, it is problematic since they may be the only bread winners of the families this problem is artificial and does not directly affect the consumer of the products from Apple Inc. however the managers and leaders of Apple inc have argued that this is not only a problem that affects Apple but it is a problem in the whole world due to the general lack of strict enforcements by local agencies. Many companies face pressure in finding the lowest cost providers and they are free to find them anywhere in the world. Often there are guidelines set for the companies such as green practices; bribery and child labor there however lack policies that are in regard of enforcement. Most of the companies such as Apple know the violations made by some of its suppliers but adopt an attitude of don't ask don't tell with these suppliers so that they can optimize margins and assure their profits.
The problem is not that the practices go on but rather that they exist and the risks that are related to them are not assessed properly against the savings provided by the low cost suppliers. However the assessment of the risks that come with the ethical dilemmas such as employing children is difficult since most of these practices are carried out in companies that are in countries where such practices that are not acceptable are a common occurrence. Therefore Apple should take serious measures in dealing with the ethical dilemma that it faces. The core of the problem that is tied to use of child labor by its suppliers is price. Incase apple tries to police the suppliers they might shift the problem to another part of the firm or even create more problems. This therefore means that Apple should give severe penalties and punishments in combination with general hands off approach to compliance auditing regarding to issues outside the quality of the components. Apple should therefore terminate the contracts they have with such suppliers and charge them any costs that the company might incur incase they find the suppliers to be in violation in any of the rules that are related to child labor or caustic chemicals. They may terminate the contracts for there, five and up to ten years.
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