Q.4 You are working as the Head of Ethics and Compliance in a big mobile manufacturing company that is known for its innovation and quality products. Both the customers and the shareholders are pleased with the performance of the company as they get value for their money and high returns on their investments respectively. Tin is a major component in the products manufactured by your company. It was recently brought to your attention that workers – many of them children – are working in unsafe conditions, digging tin out by hand in mines prone to landslides that could bury them alive. About 70% of the tin used in smartphones manufactured by the company comes from these more dangerous, small-scale mines. The company defends its practices by saying it only has so much control over monitoring and regulating its component sources. The justification advanced of its sourcing practices is that it is a complex process, with tens of thousands of miners selling tin, many of them through middle-men or third-party contractors. Based on the above case, answer the following questions: (a) What are the ethical issues in the above case? (b) Can customers of the company be expected to take into account such practices before buying any product of the company? (c) If the management were to seek your opinion on the matter, what course of action will you suggest? (20 Marks)

Mentor’s Comments- Present an introduction by encapsulating the broad theme of the case study. Highlight the ethical issues that are… Continue reading Q.4 You are working as the Head of Ethics and Compliance in a big mobile manufacturing company that is known for its innovation and quality products. Both the customers and the shareholders are pleased with the performance of the company as they get value for their money and high returns on their investments respectively. Tin is a major component in the products manufactured by your company. It was recently brought to your attention that workers – many of them children – are working in unsafe conditions, digging tin out by hand in mines prone to landslides that could bury them alive. About 70% of the tin used in smartphones manufactured by the company comes from these more dangerous, small-scale mines. The company defends its practices by saying it only has so much control over monitoring and regulating its component sources. The justification advanced of its sourcing practices is that it is a complex process, with tens of thousands of miners selling tin, many of them through middle-men or third-party contractors. Based on the above case, answer the following questions: (a) What are the ethical issues in the above case? (b) Can customers of the company be expected to take into account such practices before buying any product of the company? (c) If the management were to seek your opinion on the matter, what course of action will you suggest? (20 Marks)

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