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Consequences Of Ethical Problems In The Monde Apparel Factory

1334 Words6 Pages

There is a conflict between a company’s economic performance (profits, revenue and costs) and its social performance (obligations to people within and outside the organisation). Most of the ethical problems have certain features or characteristics. According to Hosmer, L.T, 2010, most of the ethical problems can be divided into five characteristics which are extended consequences, multiple alternatives, mixed outcomes, uncertain consequences and personal implications. Based on the identified ethical problem in Monde Apparel factory, it has certain characteristics such as extended consequences, multiple alternatives and mixed outcomes. 3.1 Extended Consequences Most of the outcomes of managerial decisions and actions are beyond the expected consequences of decision makers. These managerial decisions and actions have effect upon persons both within the organisation and the society. Managers need to think carefully before making decisions since the impact is beyond their control. The initial decisions did by Monde Apparel was to maximise the profit, however they do not seriously consider about the extended consequences. For example, the unsafe working condition and child labour identified in Monde Apparel might cause extended consequences beyond the manager’s control as shown in below: a) The unsafe working conditions bring workers’ lives in danger.  If the factory burn down, workers might be blocked and killed due to the emergency door was blocked and insufficient

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