The Oriental Flooring Coverings Pty Ltd (OFC) is a Sydney based retailer which imports its carpets from several middle-eastern countries. The company was founded by two Australian after they had travel through these countries during the 1980's. OFC is the sole customer for several small villages in the source countries where the carpets are hand woven. As the products are very finely woven, it requires children to do the weaving because of their small hands. OFC believes that it is 'preserving the craft' and the directors believe that it is a justifiable social objective.

A recent Australian TV company reported unfavourably on child exploitation in the carpet weaving industry where children were working 12-hour shifts in poorly lit sheds and cramped conditions. This has led to a deterioration of their eyesight, muscular disorders and a complete lack of education. The examples cited in the TV report bear no relation to OFC's suppliers although children are used in the labour force which has received increased media attention. The region in which OFC's suppliers' villages are found are soon expected to enjoy rapid economic growth.

Evaluate the scenario and highlight, with examples where possible, some of the ethical and moral issues raised for OFC. What would be the potential impact on the organisation if the issue is discovered and made public?