Read the information below about a business decision. Northbay Outdoor sells waterproof jackets to customers in several countries. Market research shows tha...
Question 1 Report
Read the information below about a business decision.
Northbay Outdoor sells waterproof jackets to customers in several countries. Market research shows that customers value low pricing, but an audit has found that a proposed manufacturer uses workers aged 13 during busy periods. The manufacturer offers the lowest costs and can supply 20000 jackets before the winter sales season. Changing supplier would delay the product launch and reduce expected sales. The business must decide how to meet its ethical objective while protecting its reputation.
(a) Identify the stakeholder group most directly harmed if the manufacturer continues to employ children. [1]
(b) Which one of the following is an ethical action Northbay Outdoor could take?
A Keep the supplier because its costs are lowest.
B Ask the supplier to hide workers' ages.
C Require the supplier to stop child employment and carry out inspections.
D Increase the product price without changing the supplier. [1]
(c) Explain one reason why Northbay Outdoor should consider cancelling or changing the contract. [4]
Answer Details
(a) The stakeholder group most directly harmed is the children or young workers employed by the manufacturer. They are the people experiencing the child employment directly. [1]
(b) The ethical action is to require the supplier to stop employing children and carry out inspections. This addresses the unethical practice rather than concealing it or continuing to benefit from it. [1]
(c) Northbay Outdoor should consider cancelling or changing the contract because child employment could seriously damage its reputation if customers or the media discover it. Customers may then stop buying the jackets, causing sales revenue and profit to fall. Cancelling or changing the contract also demonstrates that the business is acting consistently with its ethical objective and helps protect long-term customer trust. [4]
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