It has been discovered that an overseas manufacturing facility your company uses has been employing child labor despite your position against it. You are contemplating relocating your manufacturing to another country where costs are somewhat higher but workplace standards are more tightly controlled. In using Bagley's ethical decision tree, you determine it would be unethical NOT to relocate, so you should

Question

A. relocate the facility, but don't tell shareholders about potentially smaller profits.
B. warn the manufacturer that you will relocate should a violation occur again.
C. continue to use the facility, despite your objections, because this will maximize shareholder value.
D. relocate the facility, and tell the shareholders how this will affect their returns.
E. continue to use the facility, because it is benefitting your company, and all workers, even underage ones.

Answer 1

D. relocate the facility, and tell the shareholders how this will affect their returns.

If the action would not directly benefit shareholders, it might still be ethical to go ahead with it. Not relocating might be harmful underage children or be damaging to relationships with customers. Thus, the ethical conclusion might be to relocate but to disclose the effects of the decision to shareholders.