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Source: Hofstede Cultural Dimensions Model website comparison
B2E Violations of Child Labor -- Making the Right Choice
Donna needs to stop the negotiations and write a code of conduct for all suppliers before proceeding with any further supplier or joint venture qualification in Asia. The code of conduct will be required for every supplier to sign, and any violation of them is grounds for immediate dismissal from the B2E supply chain and strategic sourcing strategies and initiatives. She also needs to report Chenggong Corporation to the local and national government and also make it very clear that B2E will not tolerate the exploitation of children in production centers -- ever. To just slough it off and still go forward is to contribute to many children's lives being irreparably damaged -- all due to a lack of ethics on managements' part.
Ethically B2E needs to take a hard line on child exploitation in manufacturing, because once a culture like that starts in a company other abuses follow (Maurer-Fazio, Connelly, Chen, Tang, 2011). She needs to realize that B2E will be far more valuable globally as a company for stepping back from this, reporting it, and enforcing a very strict code of conduct on its supply chain. This decision to be so focused and hardline on the issue will save the company literally millions...
B2E needs to be the leader in the fight against child labor abuses as Starbucks has been the champion of fair trade coffee. Not just because it is part of their brand but because it is part of their ethics. With the world so transparent with social media, ethics have become an even brighter light globally. B2E needs to tell the CEO of Chenggong Corporation that they are being reported and that this practice will not be tolerated in any supplier relationship. To do anything less is to sacrifice the lives of poor, disadvantaged children just for a few more dollars of gross margins and profits -- and that is ethically reprehensible to do to another human being.
References
Hofstede, G., & Minkov, M.. (2010). Long- versus short-term orientation: new perspectives. Asia Pacific Business Review, 16(4), 493.
Maurer-Fazio, M., Connelly, R., Chen, L., & Tang, L.. (2011). Childcare, Eldercare, and Labor Force Participation of Married Women in Urban China, 1982-2000. The Journal of Human Resources, 46(2), 261.
Venaik, S., & Brewer, P.. (2010). Avoiding uncertainty in Hofstede and GLOBE. Journal of International Business Studies, 41(8), 1294-1315.
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