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Manychip has determined that there are three possible general locations for building a key production facility:

1) a rural location in the southwest United States that has offered major tax incentives and promised to make Manychip exempt from certain local environmental restrictions
2) an overseas location in Southeast Asia that will provide low cost labor, no tariffs consisting of 12 - 25 year old employees that have been well-trained
3) a major metropolitan U.S. city that is the most optimal from a workflow standpoint, has minimal tax incentives and more stringent local restrictions with the potential for an excellent employee pool (numbers and quality)

Using course materials and other research:

1. Identify the ethics implications of each alternative: postulate what situations might prove problematic and describe how the company should handle them.
2. Identify the methods the company should use in making the final decision on this facility location.
3. Comment on other postings by critiquing the other proposals and suggesting aspects of your classmates' plans that may have been overlooked.

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Identify the ethics implications of each alternative: postulate what situations might prove problematic and describe how the company should handle them.

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1. Identify the ethics implications of each alternative: postulate what situations might prove problematic and describe how the company should handle them.

1) a rural location in the southwest United States that has offered major tax incentives and promised to make Manychip exempt from certain local environmental restrictions:

The most important ethical implication of this option is related to the degradation of environment which could occur due to relatively relaxed and weak environmental restrictions in the region. In an attempt to earn more profits and exemption from local environmental restrictions, Manychip might be tempted to ignore certain important aspects related to conservation and protection of the environment and might overlook certain key steps necessary to protect the environment from its harmful operations.

For a big company like Manychip which operates manufacturing centres at different locations, it is imperative to maintain global standards in terms of environmental protection, even though the laws and restrictions are relaxed in few places. This is essential to maintain good corporate image in the eyes of the government, society and stakeholders and customers of the company.

The situation could really turn problematic for Manychip and its corporate image if environmental activists or general people like shareholders and other stakeholders find out that Manychip is not maintaining global standards in terms of environmental protection and is violating rules wherever possible. Such a situation can be avoided and tackled by Manychip by ensuring that the company does not compromise on such a crucial aspect and should maintain global and highest standards in terms of environmental protection, even though the laws at few locations do not require it to do so.

2) an overseas location in Southeast Asia that will provide low cost labor, no tariffs consisting of 12 - 25 year old employees that have been well-trained

Even though this location appears attractive in terms of ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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