The case of the overseas suppliers

Assignment Help Financial Management

Reference no: EM131920782

The Problem: The Case of the Overseas Suppliers

As you begin moving forward on your products, you are always on the lookout for high quality, organic, inexpensive herbs to include in your product. You have found a supplier in the mountains of Northern India who can give you a good price on excellent herbs. The contract would provide that this partner would be an exclusive supplier of a wide variety of herbs which are grown in India. The supplier would contract with local farmers for the herbs, work with them to guarantee quality, and would assure the herbs were processed in accordance with your quality control standards.

The only difficulty is that you have found out that child labor is used in the cultivation, harvesting, and processing of these herbs. When you raise the question, your supplier indicates that because the farmers are very poor, having the entire family work the fields is essential for them to reach even a threshold level of sustenance. As far as the children in the processing plants, the children are never under the age of 10. The jobs are prized because working in these kinds of plants gives whole families increased wealth.

The price you will pay for these herbs under this agreement is very competitive. By accepting this contract you will be able to keep your price very low and maintain your competitive advantage.

This question explores whether American companies have any obligation to work for international labor justice. While low wages for adults are problematic, even more problematic are low wages and possible indentured servitude for children.

The Greatest Good

In three to four coherent paragraphs, compare and contrast your options using the Results Lens. In the process, consider the following questions:

Influence Factor: Given that different stakeholder groups are affected in different proportion, determine the impact that the decision will have on various groups?

Criteria for Happiness: What are the criteria for happiness for the various stakeholders? In considering the criteria, determine what options may be "deal breakers" and what factors might be "tipping points."

Units of Happiness: How many "utils" of happiness do each option provide to each stakeholder?

Greatest Good: Determine which option creates the greatest good for the greatest number of people.

Reference no: EM131920782

Questions Cloud

European call option expiring at the end of the period : Using the BOPM, determine the equilibrium price of an XYZ 35 European call option expiring at the end of the period.

Concerning business continuation agreement : Which of the following is not true concerning a business continuation agreement?

Determine equilibrium price : determine the equilibrium price of an XYZ 100 European call expiring at the end of the third period (n=3).

Life insurance proceeds would be paid to her estate : Sue’s stock would pass to her estate. Sue’s life insurance proceeds would be paid to her estate.

The case of the overseas suppliers : As you begin moving forward on your products, you are always on the lookout for high quality, organic, inexpensive herbs to include in your product.

What is the npv after the capital structure change : Your boss is considering an investment in new manufacturing equipment. What is the NPV after the capital structure change?

Tax-deductible fringe benefits : All of the following are tax-deductible fringe benefits a C corporation may provide to its shareholder-employees except?

Creates family limited partnership : Susan creates a family limited partnership in which she owns the general and limited partnership interests.

What is the company cost of equity : What is the company’s cost of equity? If the firm converts to 25% debt, what will its cost of equity be and WACC?

User Account

All Pages