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Case Study: Conscience Or Competitive Edge?

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Please see the attachments for the case study.

1. Identify the problem or issues that Olivia is dealing with in this case. Discuss why each of these is important to Olivia, to her organization, to broader society.

2. Analyze Olivia's situation by relating the problems identified in #1 to the concepts and ideas we've discussed throughout the course. What have you learned that helps you understand the issues and gives you guidance in generating alternatives?

3. What are Olivia's three best alternatives or choices at this point? What are the advantages and disadvantages of each?

4. What is your recommended course of action for Olivia? What will likely be the consequences of that action? Justify our decision based on your own personal values and ethical beliefs.

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Solution Summary

The answer to this problem explains exploitation of labor in developing countries. The references related to the answer are also included.

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1.
The problems that Olivia is dealing with in this case is that her competitive source of shirts in Bombay was using low paid laborers that were living in and working in sub-human conditions. She had to maintain the competitiveness of lower cost. At the same time she could not clear her conscience of purchasing shirts at low prices from workshops that were using low paid laborer. Her problem was that ethical issues relating to labor were flouted. Most of the working condition norms imposed by the labor laws in developed countries appeared to be flouted.

2.
Olivia's situation is that she needs to make purchases at low prices. This was essential to remain competitive. The pricing policies of the British customers ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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