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Devie Products Unlimited

Decent Essays

Leadership Ethics Like many companies in the United States (US), Devise Products Unlimited (DPU) has decided to utilize a Third World Country manufacturing facility (TWCMF) to produce parts for its products in order to remain competitive in the marketplace. However, this TWCMF is abusing its employees by forcing them to work seven days a week, 10-hour shifts, and for minimal pay. As these inhumane working conditions are contrary to acceptable business practices in the US and contrary to our culture, continuing to do business with the TWCMF could severely hinder DPU's financial success and damage its reputation as an ethical business. However, failure to continue business with the TWCMF, the largest employer in the area, would likely result …show more content…

DPU is facing a cultural (the way things are done within a group), and an ethical (the moral principles of right and wrong) issue that if handled poorly could have lasting negative repercussions. According to Linssen (2010), a company's reputation is irreplaceable and should be protected. In contrast, however, White (2014) notes, that even when companies are caught and penalized for unethical behavior, the tendency to continue this behavior persists. White attributes this to the gradual erosion of moral decision making within a company to the point it becomes the cultural norm. Cultural and ethical issues are not uncommon as our world becomes more globalized; therefore, it is important to have an understanding of the cultural values of the countries one is doing business with and then determine what changes can be made to produce mutually beneficial results while adhering to …show more content…

There are many cultural and ethical differences between countries and it is important for mutual trust and respect that no organization try to strong-arm another into their way of thinking or take a position that their culture is more valuable than the other. According to Pitta, Fung, and Isberg (1999), it is vital for success to have a basic understanding of the culture and the expectations within cultures as they affect all business transactions. Failing to understand and consider the cultural differences will likely result in failure. Supplier Code of Conduct Second, DPU should develop a Supplier Code of Conduct that provides clear and measureable expectations of its suppliers' business requirements, acceptable behavior and performance, and actionable consequences for violations. According to Thompson (2014), a supplier code of conduct can integrate the principles from a company’s own code into its supply chain relationships. This will help ensure that all parties involved understand the terms of doing business with DPU. It will also provide the boundaries in which decisions are made and evaluated to produce ethical conclusions. Renegotiate with the

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