Etch-a-Sketch Ethics - 797 Words

Case Study 2: Etch A Sketch Ethics MGT 214 – Managerial Foundations 6/12/2013 1. Was it ethical of the Ohio Art Company to move production to China? What were the economic and social costs and benefits of this decision? What would have happened if production had not been moved? In my professional opinion, I believe the Ohio Art Company’s decision to move the production of their Etch-A-Sketch product to China was ethically sound. The Ohio Art Company was losing money while manufacturing in Bryan, Ohio. Even though outsourcing resulted in layoffs in Ohio, it also saved the jobs of many other employees by keeping the company profitable. Furthermore, even though outsourcing may result in lost jobs in the USA, it does provide†¦show more content†¦Do you think the company executives had any knowledge of the working conditions? At first glance, I had a hard time believing that the Ohio Art Company and Mr. Killgallon had no knowledge of the labor issues at Kin Ki. According to an Article from The Wall Street Journal, published a few months prior to the damaging New York Times article on Kin Ki, Ohio Art’s vice president of manufacturing made â€Å"quarterly visits to China† (Hymowitz 2003) to meet with suppliers. This fact, partnered with the labor strikes at Kin Ki prior to 2003, made me believe that Ohio Art must have had some idea of what was going on with the labor conditions at Kin Ki. However, the same New York Times article that publicized the poor conditions at Kin Ki also explained why Ohio Art and its executives may have been clueless to the situation during the quarterly visits. The New York Times describes â€Å"crib sheets† or â€Å"the official working conditions at Kin Ki as described on paper.† (Kahn 2003) These â€Å"crib sheets† were issued by Kin Ki manag ement to all Kin Ki employees prior to any visits from outside companies or inspectors. (Kahn 2003) Kin Ki managers were intentionally hiding the poor conditions from anyone visiting their manufacturing operations. 4. What steps can executives at the Ohio Art Company take to make sure they do not find the company profiled in The New York Times again as an enterprise that benefits from sweatshop labor? Obviously, Ohio Art must take steps toShow MoreRelatedEtch – a – Sketch Ethics1192 Words   |  5 PagesBing Liu 991144491 Written Report Case: Etch – A – Sketch Ethics 1. Was it ethical of the Ohio Art Company to move production to China? What were the economic and social costs and benefits of this decision? What would have happened if production had not been moved? The term ethics refers to accepted principals of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization. Here, it refers to action of the Ohio Art Company. It was ethicalRead MoreThe Ohio Art Companys Business Practices Essay example779 Words   |  4 Pagesand not just the sake of their employees. Even though OAC does have moral obligations to its employees, they also have moral obligations to there stakeholders as well. OAC’s main goal was to keep overall costs for its most popular product the â€Å"Etch-A-Sketch† under $10 or else lost money. On an economic perspective, with the move to China Americans would achieve lower prices plus lower overall cost while the move would give Chinese villagers a higher paying job and possibly a better life. A win/winRead MorePractical And Ethical Consideration Of Marketing1123 Words   |  5 Pagesvalue for customers, clients, partners, and society at large. Practic al and ethical marketing are the basic principals and values that govern the business practices of those engaged in promoting products or services to consumers. In another word, ethics is to act fairly, truthfully, and what it is culturally acceptable. Practical and ethical consideration of marketing to children has changed throughout the years. It has changed because of the growth of marketing competition. Marketing and Children:Read MoreUse Of The Cell Phones On Children Essay1891 Words   |  8 Pagesdisadvantages. The advantages include the access to the knowledge (possible on cell phone with Internet), entertainment, online social gathering and making friends, connectedness with parents in troublesome times such as earthquake, flood and storm etch when the children are away from home. Other advantages include checking the educational progress of the children by the parent on the cell phone from the schools and evaluating their progress. The disadvantages include wastage of time, damage to brain