(Ethics essay) Karlson Computers manufactures computers and all compo¬ nents. Its purchasing agent informed the company owner, Alberta Karlson, that another company had offered to supply keyboards for Karlson’s com¬ puters at prices below the variable costs at which Karlson can make them. Incredulous, Ms. Karlson hired an industrial consultant to explain how the supplier could offer the keyboards at less than Karlson’s variable costs. It seems that the consultant suspects the competitor supplier of using many il¬ legal aliens to work in its plant. These people are poverty stricken and will take work at substandard wages. The purchasing agent and the plant man¬ ager decide that Karlson should buy the competitor’s keyboards because “no one can blame us for his hiring practices and will not even be able to show that we knew of those practices.”

a. What are the ethical issues involved in this case?

b. What are the advantages and disadvantages of buying from this competi¬ tor supplier?

c. What do you think Ms. Karlson should do and why?