Quantum Footwear is an MNE that manufactures inexpensive shoes.Quantum outsources portions of its production to independent companies located in Bangladesh and India, where child labor is common.Other clothing and footwear firms have recently faced criticism regarding the use of child labor, and Quantum executives want to avoid similar problems.Which of the following would be the best approach for Quantum?

Question

Quizplus · Accepted Answer

Improving conditions at the subcontract facilities would be the best approach for Quantum as it would ensure that the company is not directly involved in the use of child labor and would be seen as taking responsibility for the ethical treatment of workers. Developing an external ethics code for foreign partners may not be enough to ensure compliance, and requiring local governments to alter their labor policies would likely be difficult and may not be effective. Leaving the market and focusing on domestic production would not address the issue at hand and may not be a viable option for the company.

Quantum Footwear Is an MNE That Manufactures Inexpensive Shoes