Module 02 Ethics Project - Trending Issues

Company Overview

Name: John Blair

Institutional Affiliation: Rasmussen College

Founded in 2001, Global Inc. is one of the leading manufacturers of consumer electronics such as personal computers, smartphones, and household appliances among other products. As a limited liability company members are not liable for the organization’s liabilities or debts (Deering & Murphy, 2003). It has experienced growth currently with approximately 13, 500 workers and an annual revenue of $14 billion as of December 2017. Smartphones and personal computers form its major source of revenue which currently comprises 45% of all the revenues. Starting 2009, the company expanded to the international market and has since experienced a growing revenue due to the expanding market share. More so, due to benefits such as cheap and readily available labor, the organization moved some of its manufacturing processes to Indonesia, Bhutan and Hong Kong which has greatly impacted the operational cost enabling it to provide goods at competitive prices.

In 2016, the company faced issues related to labor management as it was established that some of its suppliers employ underage workers and also utilizes bonded labor. It has been an ethical issue faced by the organization whether it should cut ties with the suppliers and find other suppliers. The company did not have any policies that controlled labor management practices by the suppliers hence it was not likely for the organization to act with speed. On the other hand, in the established manufacturing plants in Asian countries, it emerged that some workers received wages lower than the minimum wages in the said countries. These have been the two major issues that have recently tarnished the organization’s public image. However, it has put efforts to turn around the situation and regain its previous public image.

Reference

Deering, A., & Murphy, A. (2003). The Partnering Imperative: Making Business Partnerships Work (1st ed.). New York, NY: Wiley.