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Ethical dilemma: You work for a U.S.-based textile company struggling with overseas competitors that have access to low-cost labor. While you pay your factory workers $14 an hour plus benefits, you know that a similar textile mill in Vietnam is paying its employees about $0.50 an hour, and the mill does not have to comply with the same safety and environmental regulations that your company does. Although your mill is marginally profitable, the Vietnamese factory clearly has a cost advantage. Your CEO wants to move production to Vietnam where labor and compliance costs are lower, resulting in mill closure and employee layoffs. Your mill is the only large employer in a small community. Many of the employees have worked there their entire working lives. What is the right action to take for stockholders? What is the most ethical course of action? Is there a conflict here?

Operation Management, Management Studies

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