Question

In: Operations Management

A visiting American executive finds that a foreign subsidiary that produces cigarettes in a less-developed country...

A visiting American executive finds that a foreign subsidiary that produces cigarettes in a less-developed country has hired a 12-year-old girl to work on a factory floor making cigarettes, in violation of the company’s prohibition of child labor. He tells the local manager to replace the child and send her back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will probably become a street child if she is denied work. What should the American executive do?

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Expert Solution

Every company is a concern with its standards and assures its obligations to all branches inside and outside the country. However, there are certain rules and regulations which are limited to certain countries and not others such as child employment. It is noticed in many of less developed countries they employee children to feed themselves. In such countries, the company could make the best for its reputation although it appears against its ethics by employing an underaged child. It could have the child work as part-time in a more secure environment in the company and pay her well or takes care of a certain number of orphans education and living cost as the “Company’s In Country Value” and a way to thank the hosting country for allowing them to do business. The second option is more suitable if the company is wealthy enough to do so as it helps more than a child while in allowing this child it just helped a child and against its child labor law.   


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