TrendyWear Ethical Dilemma

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Questions and Answers

TrendyWear is facing an ethical dilemma regarding its supplier in South Asia. Which of the following summarizes the core issue?

  • Whether to expand its operations to new markets in South Asia.
  • Whether to continue working with a supplier that offers low costs but violates ethical standards. (correct)
  • Whether to prioritize paying workers higher wages over maintaining low production costs.
  • Whether to invest in sustainable materials for clothing production.

According to Utilitarian Ethics, what is the primary factor Priya considers when determining TrendyWear's course of action regarding its supplier?

  • Respecting the dignity and rights of all workers involved in the supply chain.
  • Adhering to local cultural norms in the supplier's country.
  • Ensuring TrendyWear's profitability and growth in the fashion market.
  • Maximizing the happiness and well-being of the greatest number of people affected by the decision. (correct)

What critique is posed against Priya’s Utilitarian approach, regarding TrendyWear's decision to end the contract with an unethical supplier?

  • It could negatively impact low-income customers who rely on affordable clothing. (correct)
  • It could discourage other companies from adopting ethical sourcing practices.
  • It might lead to TrendyWear neglecting its responsibilities towards local communities.
  • It could undermine the company's brand image and reputation.

Based on Kantian Ethics, what would Ahmed prioritize when advising TrendyWear on whether to end the contract with its supplier?

<p>Adhering to a universal moral duty to respect the dignity of all workers. (C)</p> Signup and view all the answers

Which critical questioning point is raised against Ahmed's Kantian Ethics perspective?

<p>Whether moral rules should ever allow flexibility, considering potential real-life impacts. (C)</p> Signup and view all the answers

From an Ethical Egoism perspective, what would Marius consider the most important factor in TrendyWear's decision-making process?

<p>The interests of TrendyWear, including its profitability and growth. (D)</p> Signup and view all the answers

What potential risk is identified with Marius's Ethical Egoism approach for TrendyWear?

<p>Damage to the brand's reputation if customers discover unethical practices. (C)</p> Signup and view all the answers

According to Florentina's Virtue Ethics perspective, what should TrendyWear prioritize in its decision-making process?

<p>Acting with honesty, fairness, and care to build a strong brand identity. (C)</p> Signup and view all the answers

What is the critical question posed against Florentina's Virtue Ethics perspective?

<p>Whose version of good character should TrendyWear follow. (A)</p> Signup and view all the answers

According to Monica Zita's Cultural Relativism perspective, what should TrendyWear consider when evaluating the ethical implications of its supplier's practices?

<p>Whether the supplier's practices are considered acceptable within the local cultural norms. (A)</p> Signup and view all the answers

Which critical questioning point challenges Monica Zita's Cultural Relativism perspective?

<p>Whether any basic human rights or environmental standards should apply everywhere, regardless of culture. (C)</p> Signup and view all the answers

According to Ionut's Stakeholder Theory, what should TrendyWear prioritize when making decisions about its supplier?

<p>Balancing the needs and interests of all stakeholders, including workers, customers, investors, and local communities. (D)</p> Signup and view all the answers

What is the main challenge presented against Ionut’s Stakeholder Theory approach regarding TrendyWear's situation?

<p>The difficulty in balancing the conflicting interests of different stakeholders. (D)</p> Signup and view all the answers

If TrendyWear were to end its contract with the supplier, which stakeholder group would be most directly and immediately affected?

<p>Supply chain workers. (C)</p> Signup and view all the answers

If TrendyWear decides to continue working with the unethical supplier to maximize profits, which ethical theory would best justify this decision?

<p>Ethical Egoism. (D)</p> Signup and view all the answers

What is the main question that arises when considering if a fast-fashion brand can be truly affordable and ethical at the same time?

<p>Can a brand balance cost-effectiveness with fair labor practices and environmental responsibility? (A)</p> Signup and view all the answers

Which ethical consideration primarily focuses on treating all humans with respect and dignity, regardless of the consequences?

<p>Kantian Ethics. (B)</p> Signup and view all the answers

How would increased transparency in their supply chains impact TrendyWear?

<p>It would likely put more pressure on them to act ethically. (A)</p> Signup and view all the answers

What is a primary challenge in applying stakeholder theory to TrendyWear's ethical dilemma?

<p>Balancing the conflicting interests of all stakeholders can be difficult. (A)</p> Signup and view all the answers

What is one likely outcome of TrendyWear acting solely on Ethical Egoism in this situation?

<p>Short-term profits at the risk of long-term reputational damage. (D)</p> Signup and view all the answers

Which of the following actions would best exemplify TrendyWear applying Virtue Ethics in resolving its ethical dilemma?

<p>Consistently acting with fairness. (D)</p> Signup and view all the answers

Which of the following would a company need to do to avoid the issues and ethical dilemma that TrendyWear is dealing with?

<p>Implement ethical theories and supply chains. (C)</p> Signup and view all the answers

How does the case study, 'Ethical Dilemma at TrendyWear Ltd,' help those who are studying ethical supply chains?

<p>It supports assignment goals by looking at potential real-world business decisions. (A)</p> Signup and view all the answers

What happens when a company makes an ethical decision that pleases all stakeholders?

<p>Stakeholders often have different, competing interests, making it difficult to maximize satisfaction for everyone involved. (A)</p> Signup and view all the answers

In the context of fast-fashion, what represents a potential conflict between Utilitarian and Kantian Ethics?

<p>The conflict lies in whether the overall happiness justifies production and consumption. (C)</p> Signup and view all the answers

Flashcards

TrendyWear Ltd.

A popular fashion brand known for its affordable, fast-fashion clothing.

TrendyWear's supplier actions

Paying workers extremely low wages, forcing overtime without extra pay, ignoring basic health and safety, and dumping toxic waste.

TrendyWear's ethical dilemma

The decision of whether to end the contract with an unethical supplier or continue working with them to keep costs low.

Stakeholders affected by TrendyWear's decision

Supply chain workers, customers, investors, TrendyWear's brand image, the environment, and local communities.

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Utilitarian Ethics (Priya)

The ethical theory that focuses on what choice brings the greatest happiness to the greatest number of people.

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Kantian Ethics (Ahmed)

Exploiting workers and polluting the environment is always wrong; treat all humans with respect and dignity, regardless of consequences.

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Ethical Egoism (Marius)

The ethical theory that the right choice is the one that best serves TrendyWear's own interests.

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Virtue Ethics (Florentina)

The ethical theory that focuses on being a good company with a strong character, acting with honesty, fairness, and care.

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Cultural Relativism (Monica Zita)

The ethical theory that ethics depend on local cultural norms; what is ethical in one country may not apply elsewhere.

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Stakeholder Theory (Ionut)

Businesses must balance the needs of all stakeholders, not just shareholders.

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Study Notes

  • TrendyWear Ltd. is a popular fashion brand known for its affordable, fast-fashion clothing aimed at young people.

  • A journalist investigation revealed that one of TrendyWear's major suppliers in South Asia.

  • The supplier was:

  • Paying workers extremely low wages.

  • Forcing overtime without extra pay.

  • Ignoring basic health and safety, putting workers at risk.

  • Dumping toxic waste into local rivers, harming the environment and nearby communities.

  • TrendyWear's decision includes questions of should they do the following?

  • End the contract with this supplier and find a more ethical one, even if this raises production costs and prices?

  • Continue working with this supplier to keep costs low, protect profits, and stay competitive?

  • This decision affects:

  • Supply chain workers.

  • Customers expecting affordable fashion.

  • Investors wanting strong profits.

  • TrendyWear's brand image.

  • The environment and local communities.

Role Playing Task

  • Each group member takes on a persona.

  • As the persona you must explain your position on TrendyWear's decision and justify your argument based on your ethical theory.

  • You must then question and challenge each other using the critical questioning points provided.

  • You must agree on a final group recommendation for TrendyWear, and explain which ethical theory influenced the group's decision.

Ethical Theories

  • Ethical theories that are played by personas are: Utilitarian Ethics, Kantian Ethics, Ethical Egoism, Virtue Ethics, Cultural Relativism and Stakeholder Theory

Priya (Utilitarian Ethics)

  • Focus: What choice brings the greatest happiness to the greatest number of people?
  • Priya wants to look at the whole picture and thinks if switching suppliers improves workers' conditions, helps protect the planet, and boosts customer pride in the brand, then the benefits outweigh the costs. Even if prices rise slightly, the overall happiness will be greater.
  • Key Questions to ask Priya:
  • Millions of low-income customers rely on cheap clothes, if prices rise could this reduce their ability to buy essential clothing?
  • How do you decide whose happiness matters more workers in the supply chain or low-income consumers?

Ahmed (Kantian Ethics)

  • Focus: Follow clear moral rules and treat all humans with respect and dignity, regardless of consequences.
  • Ahmed states that exploiting workers and polluting the environment is always wrong TrendyWear must respect the dignity of every worker, even if it reduces profit and people must not be treated like disposable tools for fashion.
  • Key Questions to ask Ahmed:
  • Fashion supply chains are complex, what if ending the contract puts hundreds of workers out of a job?
  • Would that harm also violate their dignity?
  • Should moral rules ever allow flexibility when real lives are affected?

Marius (Ethical Egoism)

  • Focus: The right choice is the one that best serves TrendyWear's own interests.
  • Marius wants to keep TrendyWear profitable and growing and if cutting ties with this supplier raises prices too much, the company risks losing customers to cheaper competitors.
  • Key Questions to ask Marius:
  • What if customers and influencers discover the supplier's unethical practices and start a social media boycott?
  • Could protecting short-term profit destroy TrendyWear's reputation in the long run?

Florentina (Virtue Ethics)

  • Focus: Focus on being a good company with strong character acting with honesty, fairness, and care.
  • Florentina thinks that brand identity matters and if they want to be known as a responsible fashion brand, they must act with honesty and fairness, even when it's hard.
  • Key Questions to ask Florentina:
  • The fashion industry has different cultures, from luxury brands to fast fashion, so whose version of ‘good character' should TrendyWear follow?
  • Can a brand appear ethical in public while cutting corners behind the scenes?

Monica Zita (Cultural Relativism)

  • Focus: Ethics depend on local cultural norms what is ethical in one country may not apply elsewhere.
  • Monica thinks in the supplier's country, low wages and long hours may be normal.
  • Key Questions to ask Monica:
  • If local norms allow child labour or environmental harm, should TrendyWear just accept that?
  • Are there any basic human rights or environmental standards that should apply everywhere, no matter the culture?

Ionut (Stakeholder Theory)

  • Focus: Businesses must balance the needs of all stakeholders, not just shareholders.

  • Ionut thinks TrendyWear should find a decision that balances everyone's interests ethical sourcing is part of being a responsible business.

  • Key Questions to ask Ionut:

  • What happens when stakeholders want completely opposite things customers want cheap clothes, workers want fair wages, investors want high profits, and local communities want clean water?

  • How should TrendyWear decide who to prioritise?

  • Other questions to consider include the following:

  • Should companies like TrendyWear follow one theory or combine ideas from different ones?

  • Are there real-life examples of fashion brands dealing with similar ethical dilemmas?

  • Is it possible for a fast-fashion brand to be affordable and truly ethical at the same time?

  • This Case Study helps you to:

  • Apply ethical theories to real-world business decisions.

  • Evaluate corporate responsibility in global supply chains.

  • Analyse the impacts of decisions on multiple stakeholders.

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