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Step l - Clarify the Ethical Conflict
Step 2 - Identify all of the Affected Stakeholders and their values
Step 3 - Understand the circumstances surrounding the ethical conflict
Step 4 - Identify the ethical perspectives relevant to the conflict
Step 5 - Identify different options for action
Step 6 - Select among the options.

We have to apply these steps to the article below.

Apply the ethical decision-making steps to the following scenario and write a paper with your team's findings. Use the article "An organizational ethics decision-making process" through the first six steps to provide your recommended course of action for the multinational corporation. The article can be found in your week four reserve reading (which can be found through your rEsource page). Use and properly cite at least three references. Also, you must use APA formatted headings to organize your paper.

Nelson, W. A. (2005, July/August). An organizational ethics decision-making process. Healthcare Executive, 20(4), 8.

Scenario: A chief executive officer (CEO) of a large multinational company recently visited one of their factories in Central America employing 3,000 people. During the trip to the factory the CEO noticed that about 15% of the factory workers were young children between the ages of six and twelve and another 25% were between the ages of thirteen and seventeen. After conversations with a few of the local managers the CEO realized that there is no local law against the employment of children and the national minimum wage law does not apply to children under the age of 18. It was also discovered that these children are hired only because they will work for about one-half of the national minimum wage, which keeps factory labor costs very low. The CEO knows that if the children's wages are raised the multinational company will be at a cost disadvantage as compared to their competitors and the multinational company will not hire as many of the children. In fact, if the wages are raised too high the factory may shut down operations all together and reopen in a country where the workforce is more highly skilled. Further, many of these children are supporting their families because their parent(s) are either unable to work or earn an insignificant amount of money. The CEO also knows that if this scenario draws media attention in the United States the use of child labor could be a public relations nightmare.

Use the ethical decision making process (reference provided above) to recommend a course of action for the multinational corporation.


Solution Preview

The response address the queries posted in 1191 words with references.
// This research paper studies the scenario of 'Exploitation of Child Labor' in a MNC. This problem covers two illegal instances, first; is employment of child labor and second, being their exploitation. We will study about the 'ethical steps' taken to solve the problem. We will also focus on the reasons responsible for the occurrence of such a problem. //


In the present organizational scenario, chances of conflicts are more therefore, it is necessary to know the human nature. An ethical conflict is a situation in which to comply with one would result in breaching another and it also engages an evident conflict between right and honest imperatives. Human beings are characterized by the presence of composite social relationships which is difficult to ignore. Therefore, it is necessary for the employers to understand the nature of its workers and they should not be harassed for the sake of mere profit (Navran, 2002).

Ethical Conflict in the given Scenario

In this given scenario, ethical conflict has aroused between the organization and the employees as the employees are engaged in the counterproductive elements. Here, the employees are children who are below the age of 18 years. Management has ignored the benefits and concerns for these employees just for the interest of profit and to gain a competitive edge over the competitors.

In this scenario, CEO realizes the wrong doings in his factories in Central America, which employs 3,000 people and was unable to take corrective measures as it could create bad image among the media. This could further lead in tarnishing the image of organization and hampering its profit. Therefore, organization was going against the values and expectations of its employees. Ethically, harmonious leadership at the organizational level demands leaders to ethically implement all the rules, ...

Solution Summary

The response address the queries posted in 1191 words with references.