Decision of AmeriTrade Toys to Move Production to Chins Essay

Decision of AmeriTrade Toys to Move Production to Chins - Essay Example This paper illustrates that the primary duty or responsibility of an organization is to maximize the profits for its shareholders and doing within the legal boundaries. Hence, the decision of AmeriTrade Toys was acted out of duty and is ethical. Another factor to consider here is that if it had not moved to its production the company would have suffered losses and as a result would have been forced to cut down the workforce. Therefore, either way, jobs would have been lost. The economic benefits of the decision are that it would make AmeriTrade Toys profitable and allow it to make products available at a lower cost to the customer. Also, it would create economic opportunities in China by creating jobs. But this would come at the cost unemployment at Middletown negatively affecting its economy. The social costs of the decision are that the Middletown community would be destroyed and at the same would promote poor treatment and standard of life for Chinese workers. An alternative to ou tsourcing was to reduce the wages of the employees at Middletown explaining them the economic situation and the need to cut down on wages. This would have helped them gain the trust of the employees and the community. Also, AmeriTrade could have adopted other cost-cutting measures wherever possible. It is not ethical for AmeriTrade Toys to continue using Wen Wai as a manufacturer until and unless improvements are made to the working conditions. It is the company’s duty to ensure proper working conditions for the labors. AmeriTrade Toys is responsible for all its stakeholders and it cannot ignore the conditions of workers just because it is outsourced. Therefore, AmeriTrade has to work towards improving the conditions of the workers or discontinue using Wen Wai as a manufacturer as it would be unethical.