Reference no: EM132808989

1. Do you think Dunlap Jeans should be responsible for ethical lapses made by individuals further down its supply chain? Why or why not?

2. Should Dunlap Jeans continue to work with their suppliers in an effort to change practices in their countries, or should they stop working with every supplier, even the conscientious ones, in a country that uses unethical or unsafe practices? Explain your reasoning.

3. Do you think consumers should be expected to take into account the ethical track record of companies when making purchases? Why or why not?

4. Would knowing that a product was produced under ethically questionable conditions affect your decision to purchase it? Explain with examples.

Case Study: Dunlap Jeans

Dunlap Jeans is an international manufacturer of designer denim jeans and related items of casual clothing. It manufactures and sells its own brand but also manufactures jeans for other well-known brands. The company is growing at an incredible rate globally. Business managers are under an enormous amount of stress dealing with different cultures and satisfying their stakeholders. In the global environment, there is even a greater challenge of battling corruption, monitoring workplace conditions, and environmental issues.

Corruption - A Global Problem

One of Dunlap Jeans biggest struggles in developing their international business has been concern with corruption, or the abuse of power for financial gain in foreign countries.  The countries that Dunlap Jeans has found to be highly ethical, such as Denmark, Norway, Canada, and Germany, all have a strict ethical codes of conduct.

On the contrary, countries in Asia, South America, and Russia, which do not have ethical business codes, have forced Dunlap Jeans managers to deal with corruption issues, such as:

• Sweatshop conditions in their factories in South America and Asia
• Expected bribes to conduct business in Mexico and Russia
• Deceptive advertising by some of their overseas subsidiaries
• Activities that harm the environment with their factories in India and Asia

Employment

Another ethical issue facing Dunlap Jeans is employment factors, such as wages and working conditions. Dunlap Jeans factory conditions fluctuate depending upon the country. For example, Dunlap Jeans was having difficulty with child labor issues in their factories in Asia.  Dunlap Jeans employment standards in the USA are to provide a good wage, protection of workers, and a fair number of employment hours. But they were having difficulty meeting these standards in their foreign operations. Their managers struggled with how to have policies that will protect workers yet be accepted by the local marketplace.

Environment

Another ethical issue facing Dunlap Jeans is the differing laws regarding environmental protection and waste. In the USA Dunlap Jeans is seen as a socially responsible company committed to the protection of the environment. But, in its foreign operations many contractors have far lower standards for emissions and waste disposal. Their managers struggle with the dilemma of applying their own standards at a great cost or simply following the standards and laws of the country they are in.