ETHICAL DILEMMAS

Ethical Dilemmas Faced by Keller Plastix Manufacturing, Inc.

Ethical Dilemmas Faced by Keller Plastix Manufacturing, Inc.

Introduction

Keller Plastix Manufacturing, Inc. wants to move its fan manufacturing from Georgia to China and its plastic beverage container production from Wisconsin to Africa. In doing so, the company faces many ethical and legal dilemmas with respect to the following issues:

Availability of cheaper and equally talented human resource in China,

Closure of manufacturing unit for plastic beverage container in Madison, Wisconsin,

Explosion of plastic beverage containers at a temperature higher than 90 degree Fahrenheit,

Purchase of real estate to move the operations to the two countries,

Purchase of Awuor in order to enjoy monopoly in the African market.

Availability of cheaper and equally talented labor in China

The cost of labor in America is much high than it is in China. China has access of competitive labor available at lower cost. United States Department of Labor published Fair Labor Standards Act (FLSA) in the year 2009, according to which the minimum wage is $7.25 per hour (Solis, 2011). The Wage and Hour Division of the United States Department of Labor is responsible for the implementation of minimum wage law.

In China, however, there was no law on minimum wage. The first ever law in this regard is the Regulations on Minimum Wages in Enterprises which was published and made effective in the year 1993. It got amended later in the year 1994 and is effective to date. In the year 2008, in an effort to calm down the grousing consumers, China raised minimum wages across the country. The minimum wage rate in china is different for different provinces. The highest minimum wage rate is in the province of Shenzhen which is 2484 US dollars on an annual basis. This highest minimum wage rate in China is much lower than the minimum wage rate in America which is 15,080 US dollars (Sanyal, 2001).

Moreover, employee benefits in China majorly consists of retirement benefits, medical benefits, maternity benefits and disability and industrial injury benefits. These benefits are fewer and relatively cheaper than the benefits an employer has to provide in the US.

Closure of plastic beverage container manufacturing unit in Madison, Wisconsin

The plastic beverage container manufacturing plant closed because it was releasing large amounts of a highly toxic substance in the air. The toxic released caused many cases of birth defects and carcinogens. The Environmental Protection Agency in the United States closed down the Madison Wisconsin plant. Keller Plastix Manufacturing, Inc. cannot open the manufacturing unit again until it resolves the issue. The shift of the manufacturing unit to Africa will save cost for the company in that it plans to dispose of the toxic waste by burying fifty feet under the soil in a remote area. The African law also prohibits this method of disposal. African law for environmental protection prohibits hazardous waste incineration.

Hence, the company will have to invest in proper disposal of toxic waste coming out of its manufacturing ...