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Essay / Research Paper Abstract
A 4 page paper that discusses three issues/questions: The first is: the legal and ethical responsibilities of outsourcing manufacturing operations to developing countries. When considering expansion to Bulgaria and Eastern Europe, should their status as members of the OECD Anti-Bribery Convention be considered? And, the ethics of disposing of toxic containers in Indonesia. Bibliography lists 5 sources.
Page Count:
4 pages (~225 words per page)
File: MM12_PGinllwb.RTF
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across the globe. While labor and other laws and regulations differ by country, organizations need to be accountable to the higher set of ethical behavior standards, whether they be in
the home country or the developing nation. Gomes-Casseres (2005) said that an organizations top management "should go beyond current laws and professional practices, as the question also relates to performance,
reputation and, yes, even ethics." This is true even though both regulations and ethics fall into a shadow-zone when a company outsources, developing an alliance or partnership with a
company in a developing nation (Gomes-Casseres, 2005). While these partnership operations may be within the countrys legal framework, the company will face damage to its reputation if they do not
assure ethical operations. There are numerous examples of this outcome. In 2000, GM spent $2.4 billion for a 20 percent interest in Fiat because they wanted to gain Fiats
expertise in diesel engines (Gomes-Casseres, 2005). But, GM took no active part in the operations of Fiat and at the end of five years, GM was forced to pay $2
billion to terminate the deal that had nearly destroyed Fiat (Gomes-Casseres, 2005). GMs reputation suffered as did their credit rating (Gomes-Casseres, 2005). Nike suffered an even greater hit to its
reputation when, in the 1990s, it was charged with violating child labor laws as well as work health and safety laws (Gomes-Casseres, 2005). They had outsourced manufacturing operations to companies
that not only had children working but they were working in hazardous conditions. Their reputations and sales suffered from these events (Gomes-Casseres, 2005). They now monitor their outsourced suppliers more
carefully (Gomes-Casseres, 2005). 2. Expansion of small business - OECD Factors In 1997, OECD (Organisation for Economic Cooperation and Development) adopted the Anti-Bribery Convention, which intends to eliminate corruption
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