Running Head: ETHICAL ISSUES 10 Running Head: ETHICAL ISSUES 1 Executive Summary The Case Study of MAS Holdings
Added on 2022-10-19
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Running Head: ETHICAL ISSUES 1
Executive summary
The case study on this paperwork is the MAS Holdings apparel company, which is the world
most reputable industries on ethical issues. MAS Holdings provides employment opportunities to
several citizens. It also boosts the foreign exchange of Sri Lanka. As a result, it helps in
sustaining the Sri Lankan economy. The apparel company is the best, globally. However, it's still
challenged with ethical issues, yet it has helped in making potential initiatives like the MAS
women go beyond which empowers women. The ethical issues surrounding the clothing industry
include low wages, poor working conditions, decision-making process, corporate financial
reports, and slave labor. The paper also discusses the possible outcomes basing arguments from
the utilitarian and Kantian ideologies suggesting that human beings supersede all creature.
Therefore, they should be prioritized, and there happiness and pleasure replace other factors in
the world. The assignment is concluded with three recommendations.
Introduction
Businesses face ethical problems daily. To date, ethical management has been a vital instrument
in business administration so that the organization can be in harmony with society and
employees. Ethics are principles which determine the sustainable business conducts in a
company which is determined by interests groups, competitors, government regulators,
customer's public as well as personal morals and values. The case study company is the MAS
Holdings company. MAS is the largest apparel industry in Sri Lanka, which produces a variety
of clothes. It's one of the first foreign exchange earner and the largest single employer in the
clothing industry. MAS Holdings Company creates approximately 300,000 to 600,000
Executive summary
The case study on this paperwork is the MAS Holdings apparel company, which is the world
most reputable industries on ethical issues. MAS Holdings provides employment opportunities to
several citizens. It also boosts the foreign exchange of Sri Lanka. As a result, it helps in
sustaining the Sri Lankan economy. The apparel company is the best, globally. However, it's still
challenged with ethical issues, yet it has helped in making potential initiatives like the MAS
women go beyond which empowers women. The ethical issues surrounding the clothing industry
include low wages, poor working conditions, decision-making process, corporate financial
reports, and slave labor. The paper also discusses the possible outcomes basing arguments from
the utilitarian and Kantian ideologies suggesting that human beings supersede all creature.
Therefore, they should be prioritized, and there happiness and pleasure replace other factors in
the world. The assignment is concluded with three recommendations.
Introduction
Businesses face ethical problems daily. To date, ethical management has been a vital instrument
in business administration so that the organization can be in harmony with society and
employees. Ethics are principles which determine the sustainable business conducts in a
company which is determined by interests groups, competitors, government regulators,
customer's public as well as personal morals and values. The case study company is the MAS
Holdings company. MAS is the largest apparel industry in Sri Lanka, which produces a variety
of clothes. It's one of the first foreign exchange earner and the largest single employer in the
clothing industry. MAS Holdings Company creates approximately 300,000 to 600,000
ETHICAL ISSUES 2
employment opportunities annually (Athukorala & Ekanayake, 2018). Therefore its ethical
practices have been essential for its credibility and growth of the economy of Sri Lanka over
time. The current moral issues facing the MOS Holdings company include low wages, decision
making, slave labor, oppression and discrimination, poor working conditions, employee’s
privacy, and freedom of expression. Therefore the paper will discuss the ethical issues within
MAS Holdings and the possible outcomes in respect to the utilitarian and Kantian theory.
Slave labor
The U.K. fashion retailer shop and Beyoncé decided to obtain gym wears from Sri Lanka labeled
Ivy Park, they encountered the sweatshop debate, which wasn't their sensor. The Holdings
Company is the largest known company globally with a famous name of being the most ethical
manufacturing and an innovative company producing ivy park clothing's (Athukorala, &
Ekanayake, 2018). Its innovativeness has gone beyond, and they became the first company to
create an environment friendly apparel plant to Mas women go beyond, which is a women
empowerment initiative. However, according to the U.K. lucid the sun on Sunday, MAS
Holdings was accused that the employees making the ivy park clothes were laboring in the
sweatshop situations as slave labors with low pay (Fontana, 2018). Other newspapers, op-eds,
blogs stated that Beyoncé and other companies would only solve this through switching
suppliers. These allegations are new since the global anti-sweatshop movement has existed for
more than 20 years and has had different organizational and institutional forms. Therefore we
can question where the problem is? What's new in this era? What is taking place? Who are
liable? (Fontana, 2018).
Low living wages and lack of payment to workers
employment opportunities annually (Athukorala & Ekanayake, 2018). Therefore its ethical
practices have been essential for its credibility and growth of the economy of Sri Lanka over
time. The current moral issues facing the MOS Holdings company include low wages, decision
making, slave labor, oppression and discrimination, poor working conditions, employee’s
privacy, and freedom of expression. Therefore the paper will discuss the ethical issues within
MAS Holdings and the possible outcomes in respect to the utilitarian and Kantian theory.
Slave labor
The U.K. fashion retailer shop and Beyoncé decided to obtain gym wears from Sri Lanka labeled
Ivy Park, they encountered the sweatshop debate, which wasn't their sensor. The Holdings
Company is the largest known company globally with a famous name of being the most ethical
manufacturing and an innovative company producing ivy park clothing's (Athukorala, &
Ekanayake, 2018). Its innovativeness has gone beyond, and they became the first company to
create an environment friendly apparel plant to Mas women go beyond, which is a women
empowerment initiative. However, according to the U.K. lucid the sun on Sunday, MAS
Holdings was accused that the employees making the ivy park clothes were laboring in the
sweatshop situations as slave labors with low pay (Fontana, 2018). Other newspapers, op-eds,
blogs stated that Beyoncé and other companies would only solve this through switching
suppliers. These allegations are new since the global anti-sweatshop movement has existed for
more than 20 years and has had different organizational and institutional forms. Therefore we
can question where the problem is? What's new in this era? What is taking place? Who are
liable? (Fontana, 2018).
Low living wages and lack of payment to workers
ETHICAL ISSUES 3
The workers at Holdings are providing services with strict rules of making 200 clothes per hour,
yet their pay is below the minimum wage bill. As at 2013, the payment of a worker at clothing
companies was 10,075 rupees, and since that increment, to date, there has never been any other,
yet the inflation rate and wage bill of Sri Lanka heightens (Fontana, 2018).
The year 2008- 2011, the world apparels industries were faced with global economic recession
and the removal of the multi-fiber arrangement ratios, which had regulated the trading of
clothing since 1970(Fontana, 2018). The phase of MFA lifted limitation for high volume
producer countries like, China which had made the markets flooded and caused pressure on the
price (Fontana, 2018) hence, buyers possess more significant advantage by placing more orders
at lower prices. Such challenges never pinned down Holdings industry because of there emphasis
on the brand-conscious recess of ethical apparels. This happened due to the history of the local
norms and firm labor laws which value education and forbids child abuse. The Sri Lankan
clothing companies since 2000 they have maintained their important ethical production issues as
core business models, and they are now visionary and capable suppliers internationally and
domestically (Fontana, 2018). A responsible supplier considers customer demands like meeting
standards and quality, manages upstream supply, and provide turnaround productions. MAS
Holdings and other Sri Lankan clothing companies are known to be performers in terms of
meeting the compliance standards (Fontana, 2018). The wages concerns surrounding them
according to the current media foray states that the workers at the garments companies aren't
paid a living wage. Under the WBO body which regulates the minimum payments in the country
indicates that garment workers should be paid monthly not hourly nor depending on pieces yet
that companies are going against the laws of the state by paying according to sections.
Decision making
The workers at Holdings are providing services with strict rules of making 200 clothes per hour,
yet their pay is below the minimum wage bill. As at 2013, the payment of a worker at clothing
companies was 10,075 rupees, and since that increment, to date, there has never been any other,
yet the inflation rate and wage bill of Sri Lanka heightens (Fontana, 2018).
The year 2008- 2011, the world apparels industries were faced with global economic recession
and the removal of the multi-fiber arrangement ratios, which had regulated the trading of
clothing since 1970(Fontana, 2018). The phase of MFA lifted limitation for high volume
producer countries like, China which had made the markets flooded and caused pressure on the
price (Fontana, 2018) hence, buyers possess more significant advantage by placing more orders
at lower prices. Such challenges never pinned down Holdings industry because of there emphasis
on the brand-conscious recess of ethical apparels. This happened due to the history of the local
norms and firm labor laws which value education and forbids child abuse. The Sri Lankan
clothing companies since 2000 they have maintained their important ethical production issues as
core business models, and they are now visionary and capable suppliers internationally and
domestically (Fontana, 2018). A responsible supplier considers customer demands like meeting
standards and quality, manages upstream supply, and provide turnaround productions. MAS
Holdings and other Sri Lankan clothing companies are known to be performers in terms of
meeting the compliance standards (Fontana, 2018). The wages concerns surrounding them
according to the current media foray states that the workers at the garments companies aren't
paid a living wage. Under the WBO body which regulates the minimum payments in the country
indicates that garment workers should be paid monthly not hourly nor depending on pieces yet
that companies are going against the laws of the state by paying according to sections.
Decision making
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