Question

Many organizations have been accused of using suppliers which engage in unsafe labor practices (i.e., Apple procuring tin) or unsafe components or methods (i.e., lead paint on toys made for Mattel). State your position regarding the degree to which “end use organizations” (i.e, Apple, Mattel, Walmart) should be responsible for the problems their suppliers create. Then explain WHY you take this position – i.e., justify your position.  

Answer 1

Since these end users ( Like Apple and Walmart) enjoy an enviable position in the business, have a huge fan following and hold a high position in opinion of their customers and are regarded by the public at large for everything associated with them, be it product quality, ethical business practices, employment policies, philanthropy and customer satisfaction initiatives. In such scenario, they owe a responsibility towards these stakeholders to live up to their expectations by adhering to the best practices of doing the business.

The suppliers have no independent identity apart from the giants they work for. It is the company's responsibility to put the systems of checks and balances in place to ensure that their suppliers are also as good as themselves when it comes to ethics, because the customers has put its trust on the prestigious company, and he /she does not know the supplier, but believes that if this product is from "Apple" or "Walmart", it must have been produced through the process the company is known for. In this, way the company is responsible for the wrong conduct of the supplier.

I hold it responsible because the customer pays huge premium for a brand due to the trust, belief and respect it has in mind for the company, and the company in turn needs to live up to the expectations, and hold responsibility for anything that goes wrong, because at the end of the day, it has breached the trust of customer, irrespective of whose negligence / unethical conduct it was.