Higher Education Department: Maryhill College, Inc
Higher Education Department: Maryhill College, Inc
Higher Education Department: Maryhill College, Inc
CASE STUDIES
Answer the questions in your own words. (Max: 15 sentences, Min: 10 sentences).
CASE NO. 1
MARYHILL COLLEGE, INC.
Higher Education Department
Lucena City
MIDTERM EXAMINATION
What Are the Pros & Cons to Having a Written Code of Ethics?
by: Debra Kraft
Source: https://work.chron.comn/pros-cons-having-written-code-ethics-18187.html
An organization's written code of ethics should outline the integrity of the business by embracing
common, core values. Company cultures that are grounded in ethical business practices help
build trust among various stakeholders. Internally, trust builds a positive workplace environment
among employees. Externally, trust builds solid relationships with customers, suppliers, investors
and the communities in which companies operate. A code of ethics sets the stage for such a
culture. But if it's too vague, not followed properly or improperly used, a code of ethics can have
the opposite effect.
A professional code of ethics acts as a guide concerning ethical conduct in a given profession.
However, it has been termed as an obstacle t to intellectual and moral developments. This way or
another, there are advantages as well as disadvantages that flow from applying the professional
code of ethics depending on the context of practices. Code of ethics typically are expressed in terms
of how the company performs its day by day interactions with suppliers, employees, and customers. A
primary objective of the code of ethics is to define what the company is about and make it clear that
the company is based on honesty and fairness. Another commonly defined value is respect in all
interactions, regardless of the situation.
It is true that business ethics is a high standard. There is no universal set of ethical principles that exists
and what is right and what is wrong often depends on the situation. The increasing realization of this
had led to a change in thinking about the effective approaches to getting firms and their employees
to behave ethically. The creation of rules and systems that people and companies had to follow. But
rules are hard to draft and quickly become out of date while systems can tie people up in business
efficiency. This has led to the evolution of the belief that although some level of compliance will
always be necessary, organization must have a vision about why they exist and that ought to be
shared by everyone connected with the company.
MARYHILL COLLEGE, INC.
Higher Education Department
Lucena City
MIDTERM EXAMINATION
CASE NO. 2
Disney &McDonald's Linked to $0.06/Hour Sweatshop in Vietnam
Source: http://www.hartford-hwp.com/archives/54/103.html
Seventeen year old women are forced to work 9 to 10 hours a day, seven days a week, earning
as little as six cents an hour in the Keyhinge factory in Vietnam making the popular giveaway
promotional toys, many of which are Disney characters, for McDonald's Happy Meals. After
working a 70 hour week, some of the teenage women take home a salary of only $4.20! In
February, 200 workers fell ill, 25 collapsed and three were hospitalized as a result of chemical
exposure.
Background
Included in the Happy Meals sold at McDonalds are small toys based on characters from Disney
films. According to McDonald's senior vice president Brad Ball, the Happy Meals characters from
the "101 Dalmatians" movie were the most successful in McDonald's history. Ball adds, "As we
embark on our new global alliance, we anticipate ten great years of unbeatable family fun as
customers enjoy "the magic of Disney only at McDonald's".
Located in Da Nang City, Vietnam, the Keyhinge Toys Co. Factory employs approximately 1,000
people, 90 percent of whom are young women 17 to 20 years old. Overtime is mandatory: shifts
of 9 to 10 hours a day, seven days a week. Wage rates average between six cents and eight
cents an hour--well below subsistence levels. Overcome by fatigue and poor ventilation in late
February, 200 Women fell ill, 25 collapsed and three were hospitalized as a result of exposure to
acetone. Acute or prolonged exposure to acetone, a chemical solvent, can cause dizziness,
unconsciousness, damage to the liver and kidneys and chronic eye, nose, throat and skirn
irritation.
All appeals from local human and labor rights groups continue to be rejected by Keyhinge
management which refuses to improve the ventilation system in the factory or remedy other
unsafe working conditions. Along with demanding forced overtime, Keyhinge management has
not made legally mandated payments for health insurance coverage for its employees, who
now receive no compensation for injury or sickness.
Many of the young women at the Keyhinge factory making McDonald's/Disney toys earn just 60
cents after a 10 hour shift. The most basic meal in Vietnam--rice, vegetables, and tofu--costs 70
cents. Three meals would cost $2.10. Wages do not even cover 20 per cent of the daily food and
travel costs for a single worker, let alone her family.
Questions to ponder:
1. What failure does McDo has towards its outsourced employees in Vietnam if any? Use the situational
influences on ethical behavior.
It shows that Mcdo decided to use the outsourcing to help businesses reduce labor costs significantly.
When a company uses outsourcing, it enlists the help of outside organizations not affiliated with the
company to complete certain tasks. The outside organizations typically set up different compensation
structures with their employees than the outsourcing company, enabling them to complete the work
MARYHILL COLLEGE, INC.
Higher Education Department
Lucena City
MIDTERM EXAMINATION
for less money. This ultimately enables the company that chose to outsource to lower its labor costs. In
this term of agreement Mcdo are not liable in any failure that the outsourcing company done.
Somehow, Mcdo know the risk of this kind of external agencies or company. And they might expect
when their firm work out for external agencies or companies. They are losing control of how those tasks
are being monitored and performed. The failure of Mcdo is to not search more deeper about the
outsourcing company they involved in. And this may affect the company’s reputation.
2 Do you think culture has an influence on how Vietnamese workers were abused as employees?
Defend your answer.
Yes. Vietnamese is really known as one of the people around the world who is hard working. Most of
the people in Vietnam started their business and work hard to grow it. Having this culture especially
having a boss or supervisor who is hard working as them influenced other people toward their jobs.
Thus, result to being forced to work harder and being taken advantage by their supervisor. That’s why
minimum wage was given to those employees. However, this kind of management might see as
abused to the employees especially having this little amount of salary that they are receiving after
working for 70 hours per week without an off in a week. As stated on the background, many
employees suffered from illness and most of them collapsed during work caused by the materials using
to make toys. Thus, it shows that the company does not have a good environment for their employees.
According to Farhan Haq, group of people working in this company group worker are concern to their
health problems, dismissals, and low wages have taken the issue up. It is shown that most employees
are enduring this kind of culture because they do not want to lose their job.
U.S.-VIETNAM: McDonald's 'Happy Meals' Sad for Workers, Study Says. (n.d.).
Retrieved November 20, 2020, from
http://www.ipsnews.net/1997/05/us-vietnam-mcdonalds-happy-meals-sad-for-workers-study-says/
MARYHILL COLLEGE, INC.
Higher Education Department
Lucena City
MIDTERM EXAMINATION
3. If you are given the chance to solve this sweatshop problem, how would you do it? Explain briefly
your answer.
If I give a chance a would like to make changes by applying this steps to make a real difference. Buy
Fair Trade is an economic system that ensures healthy working conditions, self-determination, and fair
wages for workers. When you purchase Fair Trade products, you help ensure a sustainable livelihood
for workers. also raised the minimum wage it paid workers, improved oversight of labor practices, and
made sure factories had clean air. These admissions and changes helped public sentiment
toward Mcdo turn more positive. This way the negative effect of sweatshop in outsource of the McDo
may gone overtime.