Assume that you serve as a senior human resource executive for a large multinational firm with individual plants in Malaysia, Thailand, and Pakistan and with suppliers in Asia. A new CEO has been hired who is an advocate for rights of foreign workers, staking his personal reputation on the ethical and humane treatment of the companyâ€™s and suppliersâ€™ employees. The senior human resource executive conducted an inspection of international operations and became concerned with less positive treatment of foreign workers in one of the companyâ€™s plants and in a supplierâ€™s factory. The human resource executive communicated these concerns to the CEO, who asked that the human resource executive delay taking any action until after an upcoming shareholdersâ€™ meeting, to avoid a possible stock price drop and negative impact on senior management bonuses (including the human resource executiveâ€™s bonus).
Answer these case questions: What are the ethical issues in this situation? What are the arguments for and against following your CEOâ€™s suggested approach? What do you think most managers would do, and what would be the repercussions of that decisions? What would be a better decision to make?