BUsiness ethics Essay

Submitted By letmebe99
Words: 1297
Pages: 6

Textron limited is beauty based company that is almost sixty five years old. The company has always provided its customers with the best quality products and the quality was never compromised on any grounds. The products offered were the sponges of cotton for skin care, used in the cosmetic industry by women. The major customers of the company were all women. However, as the years evolved, there was an increasing pressure from the far east companies who were also able to provide the same products that Textron offered at a very low cost, and at the best quality. This could have hampered the business and reputation of the company in the near future. Gary Case was appointed as vice president to look into the marketing side of the company’s products. The decision to go into a joint venture with a Chinese company was the decision that the company mutually took in order to beat the competition, who were trying to bring down the reputation of the company by offering lower cost and quality products to the customers.

However, Case was worried that these relationships with the Chinese companies may backfire one day. This was mainly on account of some administrative as well as operational issues. A company like Textron always based its decisions on the welfare of its employees. However, this was not the case in entering into relationship with Chinese companies. Gary Case rejected the proposal from the Mexican companies as they had a lazy attitude towards the fulfillment of the client’s orders. Also, for the Mexican companies, timely delivery of the orders was always a prime concern; instead, the employees’ welfare was the prime issue in the case of the Chinese companies. The relationship could backfire if there is an increase in the competition. There could be companies who would offer better services than those offered by the Textron.

David Grange who was the president of the company always followed his father policy of giving right treatment to its employees. No matter how much cost it would involve, the company always believed that employees of the organization are its assets, and is the duty of the company to take care of its employees. This culture was always followed in Textron from the time of is inception; however, the Chinese companies were different. The employees’ welfare was not the prime concern for them, instead cost reduction was the prime one. The reputation of Textron limited was based on the best treatment to its employees. With increased globalization, the public opinion will matter for the company like Textron; thus, the reputation of the company will be in jeopardy, if the joint venture of the company from where Textron bought its merchandise was alleged to be involved in mistreating employees.

China was one of the major eastern countries that had come up with the latest manufacturing techniques of products like cotton sponges for cosmetic products at a low production cost. It was believed that the country will soon bring about a revolutionary change in the production style, and would bring about changes in the quality and design of the products. Due to all these factors of low cost of production, easily availability of the labor and better manufacturing techniques, China was the focus of the many companies. However, everyone in the world was taking about the culture of China. This was because of the fact that China had a huge population and in order to survive, everyone worked only to earn for their subsistence. This led many companies to focus on the products, rather than the employees. They did not focus on the welfare of the employees and did not care about the conditions in which employees worked. They were abused due to the bad working conditions offered. The same issues regarding the human rights abuse have been discussed in several WTO conferences; thus, these practices have been into existence in China for a very long time, due to ever growing population of the country and their need for