The Ohio Art Company's Business Practices

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1) The main reason for Ohio Art Company’s decision to move its production to china was simply to stay in business. When asked if it was an ethical decision, you must look at the company as a whole and not just the sake of their employees. Even though OAC does have moral obligations to its employees, they also have moral obligations to there stakeholders as well. OAC’s main goal was to keep overall costs for its most popular product the “Etch-A-Sketch” under $10 or else lost money. On an economic perspective, with the move to China Americans would achieve lower prices plus lower overall cost while the move would give Chinese villagers a higher paying job and possibly a better life. A win/win situation if you ask me. Under the Friedman Doctrine, it states: “that only social responsibility of business is to increase profits, so long as the company stays within rules of law,” and here OAC didn’t break any laws while moving its company to China. Still, social costs were in this case high. Even though only 100 workers lost there job, the small city of Bryan, Ohio only had a population of 8,000 people. To many this was there main source of income and due to this loss most were unable to keep up with there mortgages which forced them into foreclosure. Not only did former OAC workers lose their jobs, they have also lost a family. It would be possible for OAC to continue its production in the small town of Bryan, Ohio but the company was already losing money for the past two consecutive years and for this trend to continue it would eventually lead them into bankruptcy. So in this case, OAC made the ethical decision to stay in business and maximize profits by slowly moving its company to China. 2) When asked, if its ethical fo... ... middle of paper ... ... it is an enterprise that benefits from sweatshop labor and help improve its image as a family company. They immediately must go straight to China and see for themselves the condition Chinese factory workers at Kin Ki face everyday. They should also work with China to improve working conditions in the factory, increase employee wages, provide pension plans, health coverage and employee contracts for all workers, improve the dormitories and meals for workers while enforcing a 40 hour work week. Executives should also hire and train a regional manager to oversee improvements in the factory. He/she will be in charge to enforce all new rules and regulations and should establish a zero tolerance policy to insure that the company doesn’t risk the fear of being labeled as an enterprise that gains profit from the exploitation of others.

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