MODULE 52: Overseas Working Conditions
Core Module Issues:
• What steps is a company obligated to take toward its overseas contract
workers?
• How should a company respond if it discovers the abuse of workers in
its overseas factories?
Module Teaching Notes
“Sweatshop labor” has been a hot topic in business ethics for some time. The scenario in this module tries
to present the story of a single abused worker in an overseas facility that manufactures smart phones for the
US market.
The story is based loosely upon the FoxConn story from summer 2010. Ten FoxConn employees
committed suicide over time, and conditions inside the facility received international scrutiny.
I find that on topics like this one, students often react differently when they are presented with general
information than they do when presented with a single, specific case of abuse.
And so, you might open your discussion with a general question along the lines of, “What should American
companies do to ensure the well being of international workers? Or is it not their problem?”
Then see if the room’s mood changes after you shift the focus to Ping’s story.
This module is accompanied by another of our video clips. [Kendra – please remind them one more time
on where/how to access the video clips.] I’d suggest rolling it before asking the five questions.
Discussion Points for Scenario Questions
1. To what degree do you agree with the vice president’s statement: “We are morally required
to use our negotiating power to insist on humane treatment of the people who make our
products”?
Completely Disagree ————————————————-→ Completely Agree
1 —– 2 —– 3 —– 4 —– 5 —– 6 —– 7
[LET THE STUDENTS GIVE THEIR RATINGS AND RESPOND TO ONE
ANOTHER.]
2. If you were the president of the company in this module, would you renew the contract with
Quality Dragon Limited if no changes were made to its operation?
A. RENEW AS IS – DON’T YOU OWE PING AND HIS COWORKERS
SOMETHING?
B. WOULD NOT RENEW AS IS – WHY NOT?
3. What parts of Ping’s story indicate to you that he is being treated wrongfully? Or does he
seem to be treated reasonably in your opinion?
A. TREATED WRONGFULLY – IN WHAT SPECIFIC WAYS?
B. TREATED OK – ELABORATE.
4. Assume that correcting the following problems would each result in a 1 percent cost increase
for the company profiled in the module. Assume that you are the president of the U.S. company.
Place a checkmark by the items that you would insist on, keeping in mind that each increases
your labor costs.
_____ Reducing employees’ workdays to a maximum of 12 hours.
_____ Improving the quality of food served to employees
_____ Eliminating reduced pay for employees who exceed their quota for errors
_____ Building additional dorms so that workers sleep with no more than four to a room
_____ Prohibiting unpaid overtime
[LET THE STUDENTS LIST THE ITEMS THEY CHECKED AND RESPOND TO
ONE ANOTHER.]
5. As a consumer, are you keenly aware of how much things cost? Would you notice if food
prices rose by 5 percent? What about smart phones, computers, and TVs: Would a 5 percent
increase in price to these items be noticeable? What if the increase was 2 percent?
A. WOULD NOTICE – EVEN 2%? REALLY? WHAT DID YOU PAY FOR THE
SHIRT YOU ARE WEARING?