Withers Computers manufactures computers and their components. The pur¬ chasing agent informed the owner, Bill Withers, that another company has of¬ fered to supply keyboards for Wither’s computers at prices below those at which Withers can make them. Incredulous, Mr. Withers hired an industrial consultant to explain how this situation could exist. It seems that the supplier is suspected by the consultant of using many illegal aliens to work in the company plant at substandard wages. The purchasing agent and the plant manager believe that Withers Computers should buy the keyboards from the supplier as “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 short-run advantages, including ethical issues, of buying from the externa] supplier?

b. What are the long-run advantages, including ethical issues, of buying from the external supplier?

c. What do you think Mr. Withers should do and why?

LO2