Operations management can present all sorts of challenges - especially ethical challenges. This is becoming more and more apparent as our world shrinks and our focus is on globalization. One of the challenges of operating in a global environment is dealing with differences in legal and cultural systems. For example, child labor is prohibited here in the United States; we consider child labor to be not only illegal but unethical. However, children are commonly used in manufacturing facilities in many different areas of the world. Child labor is not only legal but ethical.

When companies use subcontractors in other parts of the world, these companies often find that children are part of the labor force. Such practices can result in very negative publicity and a loss of customer base. When this happens, standard procedure involves performing an audit and then taking steps to make sure it does not happen again.

Consider this case: A ten-year-old girl, along with other very young workers, was discovered in an athletic shoe manufacturing facility. The child's employment was terminated. However, the child was a main source of income for her family. As a result, the child's family lost its home, and the family was forced to live in the streets and beg for food.

1. Was the decision to hire the young girl ethical? Explain your decision.

2. Was the decision to terminate the young girl ethical? Explain your decision.

3. Assume you are the operating manager of the athletic shoe company.

A) You know you can reduce the cost of athletic shoes by $1.00 per pair. These savings can result in keeping thousands of people employed here in the United States. However, to do so, you must "close your eyes" to the many children working in the overseas manufacturing factory.

B) What is your decision and why?

Please answer all of the questions, if you can not answer all of the questions do not reply.