GS4 · 20 marks · 250 words

With its highly coveted line of consumer electronics, a multinational company 'A' has a cult following among loyal consumers and makes profits of crores of rupees. Recently, a report by an international non-governmental organisation has highlighted that in some overseas production centres of the company, the working conditions are hazardous for the labour, which include children also. In some centres, the international environmental standards are also flouted. The company's global head has defended their position by saying that they have little control over monitoring and regulating the entire supply chain due to internationalization of the production process. Based on the above information, answer the following: (a) Do you think company 'A' should be held responsible for ethical lapses made by individuals further down its supply chain? (b) Should customers be expected to take into account the ethical track record of companies while making purchases? Give reasons.

Answered by 3 toppers · CSE 2021–2022

Syllabus: Public/Civil service values and Ethics in Public administration: Status and problems; ethical concerns and dilemmas in government and private institutions; laws, rules, regulations and conscience as sources of ethical guidance; accountability and ethical governance; strengthening of ethical and moral values in governance; ethical issues in international relations and funding; corporate governance.

How toppers approached it

From all 3 answers · about 270 words · 33% drew a diagram.

Opening

  • No separate opening3 of 3

Body

  • Points2 of 3
  • Points and prose1 of 3

Close

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  • A summary1 of 3
  • A way forward1 of 3

The toppers’ answers

Aishwarya VermaAIR 4 · CSE 2021 · 271 wordsTheir whole copy

Opening

The following case highlights the deterioration of business ethics that leads to labour exploitation, environment degradation due to internationalisation of the supply chain.

Body · points

(a) Yes, company A should be held responsible for lapses made by individuals in its supply chain due to following reasons:

(i) By increasing the spread of company, the profits of company would also have increased, this makes them morally obligated towards the issues caused by the spread of company.

(ii) Company is using the international resources of a particular territory therefore it should ensure that the benefit should be shared equitably.

(iii) Environment is a global common good that has transboundary nature. Hence responsibility towards it cannot be evaded by citing the jurisdictional limitations.

However such allegations must be investigated thoroughly to determine the extent and the measures to be followed.

(b) Customers should take into account the ethical track record of companies because:

(i) A mechanism of social accountability can be enforced on the companies.

(ii) Their responsibility towards various sectors can be highlighted to them.

(iii) Equitable distribution of benefits can be ensured. Eg: CSR can ensure that Companies "give back" to society.

(iv) Ethical standards of the companies can be improved.

(v) Sustainability and responsible behaviour towards environment can also be ensured.

(vi) Global harmony among nations can be ensured. Eg: Concept of Common but differentiated responsibility - fruits of development shared by all.

Close · a summary

Thus responsible consumer can contribute manifold in ensuring the business ethics of companies.

Companies like Tata group are known for strong ethical values which is reflected in the consumer trust and is beneficial for long term sustainability of the company.

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