Case 2: Challenges in the Supply Chain. Omar Diaz had worked for Moynihan Fruits for 11 years. Moynihan, headquartered in Fresno, California, had a reputation as a vendor of high-quality fruit and Diaz had enjoyed working for a company with a great reputation and a strong commitment to ethics and developing its people. Diaz's family had immigrated to the United States when he was a child. His parents had saved enough for a house in Merced. After graduating from high school, Omar had gone to work for Moynihan as a field supervisor. After four years, the regional manager nominated Omar for the company's tuition scholarship and education program. With the company's full support, Omar attended UC Merced and received degrees in business management and agricultural economics.

About a year ago, Moynihan had begun selling fruit through Costco. The contract was very high volume at very low margins. Moynihan had begun importing blueberries, blackberries, and raspberries from Mexico to meet demand. Last month, Omar had been promoted; he was now the director of raspberry production for the company. His first task was to visit the Tamarillo farm in Baja, Mexico. Tamarillo had become Moynihan's largest supplier of raspberries, producing an average of 35 percent of Moynihan's total. In the winter, that percentage could grow to 55 percent.

As Diaz drove up to the facility, he knew things weren't right. The roadside was full of ragtag tent sites and he could smell the stench of open latrines. There were a number of women by the roadside cooking on open fires; Omar recognized the distinctive dress of the women and knew that the encampment was filled with Guatemalan refugees who had fled violence in their home country. As he walked the fields with the Tamarillo manager, he noticed many families, both adults and children, picking raspberries. Upon examining the books, he found that most workers were paid survival wages; he realized that it took the effort of most of the family to earn enough to scrape together any kind of savings and hope for a better life.

He brought up the issue at lunch with his Tamarillo counterpart, who spoke of the opportunities that the farm provided these refugees. If they didn't work at Tamarillo, they had no income and would wander the Baja countryside looking for food. Diaz knew that this was likely true, and that working in the fields was safer than running drugs or turning to sex trafficking. He knew that the situation at Tamarillo violated a number of U.S. laws and Moynihan policies. As he lay in bed that night, he wondered what he should do. Should he ditch the contract with Tamarillo? Who else could provide that quantity of berries? Should Moynihan help Tamarillo improve its operations? What were his, and his company's, ethical obligations to the refugees?

Answer this question

1. Should he ditch the contract with Tamarillo? Who else could provide that quantity of berries?

2.Should Moynihan help Tamarillo improve its operations?

3. What were his, and his company's, ethical obligations to the refugees?