Critical Thinking and Ethics Assume you are the CMO for an athletic shoe company. Over 75 percent of your sales comes from the United States and Europe. You have outsourced your shoe production to Firm ABC in Guatemala for 30+ years, but recent reports in the world news have suggested that your supplier is using child labor to produce its goods. The reports show the children are forced to work 70 or more hour weeks in unclean conditions without adequate air conditioning and with few breaks. You are considering switching to Firm XYZ in Honduras that produces an identical prod-uct in a sustainable manner and provides both green marketing and fair labor certifications. The only down-side is that Firm XYZ’s product is 43 percent more expensive than what you are currently purchasing from Firm ABC. The switch would require you to increase the price of your shoes, which would likely impact your sales. Were your sales to decrease, there is the possibil-ity of layoffs and plant closings. You are also aware of the importance of ethics and sustainability to today’s consumers. Answer the following questions:

a. What are the potential positive and negative out-comes

(in addition to those already discussed) of continuing to purchase product from Firm ABC?

b. What are the potential positive and negative out-comes

(other than those already discussed) of changing suppliers and purchasing product from Firm XYZ?

c. Which firm would you choose using the utilitarian approach to decision making? Why?

d. Which firm would you choose using the rights approach to decision making? Why?

e. Which firm would you personally choose? Why?