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In: Economics

A visiting American executive finds that a foreign subsidiary in a poor nation has hired a...

A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company's prohibition on child labor. He tells the local manager to replace the child and tell her to go back to school. The local manager tells the American executive that the child is an orphan with no other means of support. If denied work, she will probably become a street child along with her 6-year-old brother whom she supports. What should the American executive do? (in 250 words)

Solutions

Expert Solution

This is an ethical dilemma for the executive. The executive can deny his ties with his overseas factory owner. In this case girl and the factory both will lose their livelihood.

Other ways can be to keep the girl on the job and let her earn given she is the sole provider for the family. But, this case has problems for violation of labour laws which might be an issue for the firm.

However, the executive can extend an external support for the firm where he can provide for the girl over and above her requirements. Also, the executive can ask the factory owner to look after the girl and his firm may take care of the girls cost of living and other expenses. This may sound illogical but according to me this seems to be the best way out of it. Since you can not throw the girl out of job. Depending on the age, they will have to provide for 6 years after which the girl can pay her debt by working for the firm or the company.

Rahul Sunny answered 1 year ago
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