When I was thinking of how to answer this
question, I thought about companies like Adidas, or even companies like
Wal-Mart or Target. One time I remember reading an article covering the abuse
of children who work for companies like these overseas to produce their products.
Children in Bangladesh were allegedly hit for falling behind assembly goals,
sometimes falling down from fatigue, and forced to work 12-14 hours/day. The number
one goal for most of these corporations is dropping costs(moving operations
overseas where labor is cheaper).
Now, for the issue at hand with the shoes,
and my point of view on the dilemma. After studying the labor-costs of the
current suppliers compared to the potential contractor in China, it is
estimated that they will save $1 per pair of shoe that is made. They projected
sales to be close to 10 million; therefore the costs would be reduced by
$10million. I would find this very attractive. However, if it were me, I would
go a different route. As I would want to maintain a public image that shows my
operations as ethical and responsible. I could not contribute to such terrible
operations as I described above. Thus, my decision would be to uphold honesty
to my customers that I am fair, moral, and ethical in my productions. Although
I am taking a loss from the increase in costs, I would take a much greater loss
if the public found out that I had been operating under such conditions found
in these Chinese labor factories.