TOPIC

We're focusing heavily on corporate social responsibility and ethics in this module.

Our company uses ElectroInnovate $($EI$),$ a major global technology company that produces a wide range of electronic devices, including smartphones, laptops, tablets. We have a major contract with them, and they provide tech devices and support for all of our businesses.

EI sources various components and materials from a complex global supply chain network. Recently, an investigative report by a respected international organization has revealed that one of EI$$s key suppliers, TechMetals Inc., is involved in unethical practices. TechMetals has been found to use child labor in some of their mines to extract rare metals crucial for ElectroInnovate products.

Arguments for Cutting Ties with EI:

Ethical Responsibility: Advocates for cutting ties with ElectroInnovate argue that we have a moral and ethical duty to ensure our supply chain is free from child labor and unethical practices. Supporting such practices can damage our company's reputation.

Legal Repercussions: The use of child labor is illegal in many countries. By continuing to work with ElectroInnovate, we could face legal consequences.

Arguments Against Cutting Ties:

MAJOR Supply Chain Disruption: Those against cutting ties emphasize that ElectroInnovate is a major supplier for all of businesses within our portfolio. Severing ties with them would drastically disrupt our supply chain, causing customer support delays, potentially halting our businesses and our company's profitability.

Not our problem: Technically, TechMetals isn$$t our direct partner. Perhaps no harm would come our way.

Should we immediately cut ties with ElectroInnovate, taking a strong stance against child labor but risking supply chain disruptions, or should we keep the relationship? Explain.