Etch-A-Sketch

Name:        Aye Myat Mon

ID No:                              

Batch No. 13

Case No. 1

Ohio Art Company is best known as the producer of one of the top selling toys as the venerable Etch-A-Sketch.  But once they have the troubled time for toys’ maker they decided to outsource the production to China. Ohio Art Company is not breaking the laws and it was ethical of the Ohio to move production to China.  It will be getting the economic benefits for both US and China.  US will get the lower price for the product and Chinese workers will get the better life style, better experience in working environment than their country.  But for small town of Bryan they lost their jobs and there will be no income for the employees.  It will affect that the tax base is eroding from the loss manufacturing and foreclosure of their home and death to the community. The social costs for the US workers are higher. They cannot afford to pay the overhead cost as well as the labor cost while the retailers want to keep product cost under $10 with the higher wages and operation costs.  As to social cost, the company went to moving production to china will become the many workers at the Bryan are jobless but company perceived the employees who made the product as their family and they don’t want to left  their employees.  The company needs to take social responsibility and holds for the moral responsibility by gradually moving the production activities.  That can be help to increase their profit and reduce the cost efficiency.  If the production had not been moved, the cost of production will be raise and it can be reduce the demand of the retailers and consumers. It will be leading to the business unable to lower their product price, losing their profit and unable to continue the business

.                                                                          Name:        Aye Myat Mon

ID No:                              

Batch No. 13

Case No. 2

According to the case study, Kin Ki is unethical for Ohio Art Company to continue the manufacturing assuming that the New York Times description of working conditions is correct.  Kin Ki is taking advantages on their migrant workers in many aspects of the operation that includes workers salary, working conditions, pensions, medical benefits, meals and accommodations which set by the Shenzhen province where Kin Ki is located. But the New York Times did not mentioned about Kin Ki is violating the laws that is set by Shenzhen province.  It seems that not only the Kin Ki but also the all of the China factory are not following the laws.  From the point of view of naïve immoralist Kin Ki will be ethically defensible because of everyone is doing the same and working condition is meet the local standards and workers are also willing to work on under this circumstances. The Ohio Art Company should be accepting it and the company will be bad profile in the publicity and damage of their reputation with customers and their business world.  But from the point of view of righteous moralist, Kin Ki should follow the standards of Shenzhen province.  Ohio Art company should stop continue with Kin Ki because of they are violating on the human rights.  If the Ohio Art Company wants to continue business with Kin Ki, the Ohio should have the proper contract with the terms of the human right conditions, happy working environment, standard working hours, good meals, competitive wages, pensions, medical benefits etc, if not the workers will be strike for their higher wages, better working conditions.  These are the standards for the nation and Kin Ki is failure to do this then Ohio Art Company should go for the legal action and terminate the relationship with Kin Ki.

Name:        Aye Myat Mon

ID No:                              

Batch No. 13

Case No. 3

It is not possible that Mr Killgallon had no knowledge of labor problems at Kin Ki and as of the company executive they should had knowledge of the working conditions. They had been making pocket-sized Etch-A-Sketch toys for nearly a decade and this is not their first time to doing business in China. They have already high standards and ready to go for global market for their product with Kin Ki.  When they decided to outsource production to china, the executives should know the details and trying to find out the requirements, engaging about the operations in business such as the working conditions, salary levels, labor laws and labor rights, resources and cost for the business.  It can be possible if they are doing business first time in china but this is unlikely.  If the company was believe of the Kin Ki’s publications that they will provide the decent working conditions and wages, we can be argued that the company will be negligence on the labor problems at Kin Ki. As of executives of the company they should have knowledge of the labor laws, how this labor laws are protecting and effectively influence and will they be employment practice. And also should have the knowledge of the culture of firms and country which the firms located for offshoring the business where their culture are follow the rules or abiding the laws are such a normal circumstances and local norms, how they will react and face with trial in court if there is any happening on the labor, they should checking also with managers, supervisors and learn it from them. They should know on it before and during the processing of operations. According to the case study, the executives are neglects the labor problems and only focus on making a maximize profit and cost efficiency. That will not be gaining the win-win situations for workers and organizations.