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SEMESTER SPRING 2023BUSINESS ETHICS (MGT610)ASSIGNMENT NO. 01DUE DATE: APRIL 29, 2024 MARKS: 10Topic: UtilitarianismTechEon, a multinational corporation in the technology sector, is considering establishing amanufacturing plant in a South- East Asian Country, called Asiana, known for its lowerlabour costs and favourable tax regulations. However, recent reports from human rightsorganisations and media channels have raised concerns about labour practices in Asiana. Thereports highlight instances of labour exploitation, including long working hours, unsafeworking conditions, and limited workers' rights protections.Despite these reports, TechEon sees the potential economic benefits of establishing themanufacturing plant in Asiana. The company's executives believe that the lower productioncosts and access to a skilled workforce outweigh the ethical concerns raised by the reports.To address the ethical dilemma, TechEon decides to conduct a cost-benefit analysis usingutilitarian principles. They aim to determine whether the economic benefits of establishingthe manufacturing plant in that Asiana outweigh the potential negative impacts on workers'rights and well-being.During the cost-benefit analysis, TechEon considers various factors, including labour costs,regulatory compliance expenses, potential reputation damage, and societal impact. Theyassign monetary values to each factor and assess the net impact on stakeholders, includingworkers, shareholders, customers, and the broader community.After completing the analysis, TechEon concludes that the economic benefits of establishingthe manufacturing plant in Asiana offset the potential negative impacts on workers' rights andwell-being. They decide to move forward with their plans to establish the plant, emphasizingtheir commitment to complying with labour laws and improving working conditions inAsiana.Requirement:Question 1: Explain how TechEon can incorporate ethical considerations into its decision-making process regarding the expansion to Asiana. Provide four specific actions or strategiesthat TechEon can implement to ensure ethical business practices in the new location. (4Marks)Question 2: Discuss the potential consequences for TechEon if it prioritises profit overethics in its expansion to Asiana. Identify three negative outcomes that the company may facebecause of disregarding ethical considerations. (3 Marks)Question 3: Evaluate the role of stakeholders in influencing TechEon decision-makingprocess regarding the expansion to Asiana. Also, identify three key stakeholders who mayhave a vested interest in the company's actions and explain how their prospects could impactTechEon’s ethical considerations and strategic decisions. (3 Marks)

Question

SEMESTER SPRING 2023BUSINESS ETHICS (MGT610)ASSIGNMENT NO. 01DUE DATE: APRIL 29, 2024 MARKS: 10Topic: UtilitarianismTechEon, a multinational corporation in the technology sector, is considering establishing amanufacturing plant in a South- East Asian Country, called Asiana, known for its lowerlabour costs and favourable tax regulations. However, recent reports from human rightsorganisations and media channels have raised concerns about labour practices in Asiana. Thereports highlight instances of labour exploitation, including long working hours, unsafeworking conditions, and limited workers' rights protections.Despite these reports, TechEon sees the potential economic benefits of establishing themanufacturing plant in Asiana. The company's executives believe that the lower productioncosts and access to a skilled workforce outweigh the ethical concerns raised by the reports.To address the ethical dilemma, TechEon decides to conduct a cost-benefit analysis usingutilitarian principles. They aim to determine whether the economic benefits of establishingthe manufacturing plant in that Asiana outweigh the potential negative impacts on workers'rights and well-being.During the cost-benefit analysis, TechEon considers various factors, including labour costs,regulatory compliance expenses, potential reputation damage, and societal impact. Theyassign monetary values to each factor and assess the net impact on stakeholders, includingworkers, shareholders, customers, and the broader community.After completing the analysis, TechEon concludes that the economic benefits of establishingthe manufacturing plant in Asiana offset the potential negative impacts on workers' rights andwell-being. They decide to move forward with their plans to establish the plant, emphasizingtheir commitment to complying with labour laws and improving working conditions inAsiana.Requirement:Question 1: Explain how TechEon can incorporate ethical considerations into its decision-making process regarding the expansion to Asiana. Provide four specific actions or strategiesthat TechEon can implement to ensure ethical business practices in the new location. (4Marks)Question 2: Discuss the potential consequences for TechEon if it prioritises profit overethics in its expansion to Asiana. Identify three negative outcomes that the company may facebecause of disregarding ethical considerations. (3 Marks)Question 3: Evaluate the role of stakeholders in influencing TechEon decision-makingprocess regarding the expansion to Asiana. Also, identify three key stakeholders who mayhave a vested interest in the company's actions and explain how their prospects could impactTechEon’s ethical considerations and strategic decisions. (3 Marks)

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Solution

Question 1: TechEon can incorporate ethical considerations into its decision-making process regarding the expansion to Asiana by:

  1. Conducting a thorough due diligence process: This involves investigating the labour practices in Asiana and ensuring that they align with TechEon's ethical standards.

  2. Implementing a robust compliance program: This program should ensure that TechEon's operations in Asiana comply with local labour laws and international human rights standards.

  3. Engaging with local communities: TechEon should engage with local communities and stakeholders to understand their concerns and expectations. This can help the company to develop strategies that address these concerns and contribute positively to the community.

  4. Establishing a grievance mechanism: TechEon should establish a mechanism that allows workers and other stakeholders in Asiana to raise concerns or complaints about the company's operations. This can help to identify and address potential ethical issues early on.

Question 2: If TechEon prioritises profit over ethics in its expansion to Asiana, it may face several negative consequences:

  1. Damage to reputation: If TechEon is seen as disregarding ethical considerations, it could damage its reputation among customers, investors, and other stakeholders.

  2. Legal consequences: If TechEon violates labour laws or human rights standards in Asiana, it could face legal consequences, including fines and sanctions.

  3. Employee morale and productivity: If workers in Asiana feel that they are being exploited, it could lead to low morale and productivity, which could ultimately impact the company's bottom line.

Question 3: Stakeholders play a crucial role in influencing TechEon's decision-making process regarding the expansion to Asiana. Three key stakeholders who may have a vested interest in the company's actions include:

  1. Workers in Asiana: They may be concerned about their rights and working conditions. Their prospects could impact TechEon’s ethical considerations and strategic decisions as the company needs to ensure that it treats its workers fairly and ethically.

  2. Customers: They may be concerned about the ethical implications of TechEon's operations in Asiana. If customers perceive that TechEon is acting unethically, they may choose to boycott the company's products.

  3. Investors: They may be concerned about the potential risks associated with TechEon's expansion to Asiana. If investors perceive that TechEon is disregarding ethical considerations, they may choose to divest from the company.

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