>> Business Law and Ethics
Write a five page double-spaced essay addressing the case below.
Only use the facts of the case to explain your answer as they relate to the class materials. This assignment requires a written essay with references to the text and to class materials.
PART - SUPPLY CHAIN
Green Move's recent success is due largely to its strategic relationship with one of its suppliers, the Solar Group. The Solar Group manufactures the solar panels that are critical in the Zero Pedal. The Solar Group is located in Bangladesh where it employs over one hundred people, including many child laborers. Consistent with Robert's conscionable mindset, Green Move's contract with the Solar Group specifies that "no children shall be employed by the Solar Group and that all workers shall be treated fairly."
One evening Robert receives a telephone call from an online blogger who claims that he obtained video footage within the Solar Group factory depicting a dimly lit and poorly ventilated work environment. He also claims that the factory workers are paid less than an adequate wage to live in dignity. He asks Robert to comment and tells him that he will be posting a link in his blog to the video to show the public that Green Move is a phony and that its relationship with Solar is being used to exploit foreign workers.
Ironically, at the same moment, Akash is returning from his long day of work at the Solar Group factory. He is 23 years old and has been working intermittently in various factories since he was thirteen. Most of his childhood friends do not have jobs and those who do earn less than Akash. He has never left Bangladesh. Akash is tired but he is thankful to have found a job at the Solar Group. He understands that the work is dangerous but he hopes to move into a supervisory position within five years where he will realize a modest increase to his hourly wage. As a result, he has avoided the recent debate among his coworkers whether they should unionize and leverage their collective weight to demand better working conditions.
Robert knows that the workers at the Solar Group factory are paid more than the average wage in Bangladesh. However, he also knows that work environment is much worse compared to the conditions in the United States and that these labor practices which are legal in Bangladesh are illegal in the U.S.
1 What should Robert do about the conditions at the Solar Group? Terminate the agreement? Whose interests are at stake?
2 What is the appropriate standard he should apply when considering the working conditions and wages in Bangladesh?
3. How might the blog impact Green Move's brand?
PART - FOREGIN EXPANSION
Green Move has a small technology team employed in the Boston office and outsources the remainder of its technology needs. Viktor has long advocated the substantial cost savings and better management if Green Move were to hire well educated individuals from Eastern Europe at low wages. Privately, Viktor realizes that he would also like to make a difference in Russia by helping the underemployed and unemployed. The board met and agreed that Green Move should consider this as a long-term strategy and that Viktor should investigate a remote technology base in Russia. Viktor spoke to his friends and believes that he has found the perfect location to lease. The government- owned property is large, well lit and its urban location will attract many workers.
Viktor has traveled to Russia to visit his family and to meet with the property manager. The two discuss the rich history in the area and Viktor is under the impression that the property is available. It is not until the end of the meeting that the manager informs Viktor that there will be a competitive bid for the lease of the property. He instructs Viktor to send him his best offer by the end of the week and hands him two envelopes; one addressed to a government office labeled "property lease bid" and the second addressed to the property manager labeled "facilitation." He explains that whatever he places in the second envelope will "keep the process moving" and the he would hate to see him miss out. Viktor takes both envelopes.
1 - Should Viktor provide a bid on the property lease? Should he include both envelopes? Why or why not? What are the legal and ethical considerations?
2 Should Green Move expand its operations in Russia?
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Considering the current conditions at the company of Solar Group, the interests of the factory workers are at stake. The environment of the factory is not suitable for the employees, while less wages are given that is inadequate for living in dignity. Also, the work environment involves poor ventilation across the factory, unfit for the health and welfare of the workers (Stafford, 2010). This condition abides the Act of Occupational Safety and Health (OHSA) according to which every Bangladeshi worker will be having the right to a healthy and safe work environment. The Act has been covered under the OHSA program operated by the federal government. In this scenario, if Robert terminates the contract, it will have to pay a price for breaching the contract, and hence, he must consider incorporating a policy to be in compliance with OHSA. This will require the consideration of certain responsibility as an employer providing a healthy and safe workplace free from any kind of recognized hazards. This will require the consideration of following key requirements (Oxenburgh, 2004):
• Provision of appropriately maintained equipment and tools
• A system of warning like labels or codes, for warning the workers about hazardous chemicals or potential hazards
• To post the significant of act across prominent and opportunistic locations
• Maintaining records about work in relation with illnesses or injuries