Reference no: EM131470270

Question: Business Ethics and Public Opinion. Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $100 a month to assemble them. You also know, however, that a competing shoe manufacturer recently was accused by human rights advocates of engaging in exploitative labor practices because the manufacturer sold shoes made by Indonesian women for similarly low wages. You personally do not believe that paying $100 a month to Indonesian women is unethical because you know that in their country, $100 a month is a better-than-average wage rate. Assuming that the decision is yours to make, should you have the shoes manufactured in Indonesia and make higher profits for your company? Should you instead avoid the risk of negative publicity and the consequences of that publicity for the firm's reputation and subsequent profits? Are there other alternatives? Discuss fully.