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The Ares Company
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The Ares Company
The case involves the Ares Company, an organization that operates as a vendor of
designer clothes in the US but has a main manufacturing plant abroad to cut the costs of
manufacturing. As such, the majority of its workforce are children, and the objective is to ensure
that the operational costs are maintained at their minimum. The children are under the age of 15,
and their prevailing wage bill is $1.55 for an eleven-hour day. Due to the high rate of
unemployment, the company has a strong bargaining power, and in some situations, the children
are the sole breadwinners for their families, and they must take what is offered in terms of pay.
The country does not have major or strict environmental and workplace laws, and this means that
the manufacturing environment for the company is good, for it can continue producing
production at a lower price compared to the domestic trend in the US.
This case can be analyzed from different perspectives, and among them are the ethical
considerations. In terms of its legal compliance and ethical responsibility, the company has to
adhere to the local laws but can face some form of ethical scrutiny, a standard that is set to
comply with internationally accepted child rights. The company is likely to face some major
challenges or scrutiny associated with the use of child labor, low wages, and minimal
environmental regulations. Even if there are no established regulations, it remains ethical that the
management can set higher expectations and performance index in terms of its performance and
compliance with the anticipated norms in the US. The perspective of ethics can thus be used to
question the morality of the continued exploitation of the vulnerable and denying children a
chance to attend school and mitigate the issue of environmental degradation.
Based on the concept of consumer responsibility, it becomes necessary for consumers to
follow the supply chain trend and ensure that the sourcing of raw materials and the
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manufacturing processes follow the industry's best practices. This is an aspect of ethical
consumerism in which U.S. consumers may feel obligated to avoid buying products that have
been manufactured through exploitation and without considering the organization's
environmental impacts. This means that it is necessary for them to avoid unethical companies
like Ares, for its business model is primarily based on the continued rate of exploitation. The
dynamics of ethical consumerism ensure that the purchasing decisions should align with moral
values, and this means a potential boycott of Ares' products and, thus, a lowered market
performance and a possible exit of change of its business model.
The ethical theory that can be considered from this perspective is that of cultural
relativism. This is a concept that posits that moral standards must be ethically defined and
appropriate in terms of meeting social and economic needs. Cultural relativism considers that
moral standards are not universal, but they are culturally defined and influenced. As such, no one
should judge others' ways of life based on the observed differences from their own. As such, a
cultural relativist individual will consider that the company’s practices are acceptable in the
country of manufacturing and that they align with the norms of the locals and the employees. If
the staff is comfortable and authorities do not question such practices, then it means that US-
based consumers should not interfere with such practices. As such, according to cultural
relativism, it is clear that Ares is right in its practices, for they have provided employment
opportunities and, thus, a source of income for the employees and their families. Also, it is
possible that the continued exploitation of child labor and low wages in the country might be part
of the necessary and acceptable practice within that cultural context.
Mill’s principle of greatest happiness can also be applied in this case study. Notably, it is
clear that the concept of utilitarianism focuses on the maximization of overall happiness and the
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minimization of suffering. The company advances some elements of positive utility as measured
by the provision of employment opportunities in a country that lives in poverty, and this is part
of the economic and income opportunities for the vulnerable. However, it is associated with
some harm, such as impacting the children's school attendance, as they are allowed to work in
the production factory at very low wages. Based on Mill's ideology, it is possible that there will
be a comparison between the overall happiness and suffering of exploitation by the company. If
the exploitation and the challenge of environmental degradation can outweigh the advantages,
then Mill will not side with the company. As such, it is apparent that Mill will be more likely to
criticize Ares’ operations and the continued preference for child labor, yet their parents and the
young adults can worm for the firm.
Kant’s categorical imperative can also be applied in this case, and it explains that some
actions can be universally applicable and relevant. However, they have to be measured against
the intrinsic value of the individuals, and among the applicable dynamics is the consideration
that people only need to act for the maxims that can be used or be applicable as universal laws.
As such, it is common knowledge that irrespective of one's culture, child labor should be
avoided, and the same applies to organizational practices that result in environmental pollution.
As such, Ares' practices, such as exploiting the children and disregarding how its operations
impact the environment, are part of the failure to comply with the inherent dignity of the people.
Based on this assessment, the strongest ethical approach that can be recommended
approach is Kant's categorical imperative. There is a need to emphasize the universal ideologies
of decision-making and human behavior. It is universally accepted that child labor is wrong, a
vice that should be condemned as children should be given a chance to focus on their career
development and education. The same case is applicable to the need to offer the staff reasonable
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pay and be environmentally conscious. As such, Kant's approach provides a clear, principled
stand against such exploitation, advocating for practices that honor the intrinsic worth of every
individual involved.
In summary, it is clear that companies would want to focus on cost-cutting to optimize
their profits. This is a dominant aspect of many enterprises, but it is necessary to follow the
internationally accepted production processes. That’s why Kant's categorical imperative presents
the strongest case for ethical reform, as it can be used to urge the management at Ares to adopt
practices that respect human dignity and align with universal moral business standards.
