Case Study: Labor Unions, Ethical Dilemmas, and Solutions

This case study examines two scenarios: the challenges faced by Chinese workers regarding low wages and the ethical issues arising from cultural differences and racial discrimination within a company. The first case explores the advantages and disadvantages of labor unions, the workers' perspectives on strikes, and recommendations for factory owners to ensure fair treatment and employee satisfaction. The second case delves into the ethical dilemmas of a company's CEO, who prioritized the company's reputation over addressing racial issues. It discusses the CEO's refusal to take action against the people who have indulged in such racial and biosphere behavior simply because the company needs to retain its good reputation and stock prices. The analysis highlights the importance of transparency, stakeholder engagement, and proactive management in addressing ethical concerns and promoting a positive work environment. The study emphasizes the need for managers to take immediate steps to resolve such issues before they escalate, prioritizing ethical conduct, and maintaining a good company image.

Running Head: CASE STUDY
CASE STUDY
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Author Note

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Case study 10.1
1. The unions in China are being encouraged because of the mass dissatisfaction with
the amount of wages was Chinese workers receive after they have started realizing
their work and how are heavily underpaid there despite the amount of work they put
in. There are various advantages of labor unions like labor unions helping in
promotion of higher wages for the employees. Labor unions also help workers voice
their opinions and benefits they expect and help the workers get those benefits.
Unionized workers usually have better access two leaves and vacations compared to
the various workers who are non-union. not only is the benefits limited to be
employees but labor unions also help the families of the employees receive benefits.
Sometimes labor unions regulate themselves in a wave that takes into account the well
being of the families of the various employees who are a part of the union because it
promotes goodwill and satisfaction. The unionized employees also have access to
retirement that will be funded using pension schemes (Hirsch, 1981). All in all labor
unions are form of a protective organization that takes into consideration the safety of
the employees and the stability of the work they do. It is an open forum when
negotiations tend to happen if really and voices are heard. However unions can also
be problematic because they tend to have due set need to be given and initiation fees
that need to be fulfilled. Jobs that are given away through unions are usually e given
to people on the basis of seniority rather than on the basis of relevant experience
(Chen, Kacperczyk & Ortiz-Molina, 2011). Sometimes loving happens in various
unions and various other activities all the workers disagree with them. These unions
also discourage and individual’s individuality and culture is more for group thinking
and advantages. Most importantly unions tend to have extremely poor public
reputation which can be problematic for the employees you are a part of it.

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2. If I were a Chinese worker I would not risk going on a strike simply because I am
afraid of being pulled aside and made to suffer despite the poor wages I receive. for
me personally stability is extremely important and in a situation where I see that
despite strikes much of an increase cannot be expected, I will make myself work with
what I already have then trying to aim for something more because if something goes
wrong I will lose whatever little I would have received (Turner, 1993). Yes I am of
the belief that people need to be remunerated correctly and low wages are
unacceptable button cases where the chance of anything apart from it may be too
feeble, it's best not to indulge in anything that tries to counter the inevitable.
3. If someone is about to open a new factory in China, I would suggest but he or she
pays the labors a little higher than what is being paid in the market in order to get
labor to trust in the stability, his or her company may provide. I would request factory
to make sure that all their employees are a part of the union in which they can
regularly voice opinion about their problems and the changes they would like and the
owner of the factory should take into consideration all these recommendations and try
to work on it.
Case study 10.2
1. The ethical issues that have risen in the situation is is issues that have happened
because of cultural differences and the general tendency of people to indulge in
hostile behavior whenever faced with people who are significantly different to them
when it comes to culture and upbringing (Loden, 1996). These ethical issues a racial
in nature and requires sensible handling by the management to ensure that the
situation does not blow out of proportion and harm the image of the company and the

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people involved with it beyond redemption. Another ethical issue that grows up was
when the CEO refused to take action against the people who have indulged in such
racial and biosphere behavior simply because the company needs to retain its good
reputation and stock prices. The internal conflict of the company was subdued by
force and the issue was not addressed at a proper time.
2. The CEO suggested that the situation which caused the ill treatment of foreign
workers in one of the plans of the company substitute for the while because of the
upcoming shareholders meeting, where it is crucial to maintain the good image of the
company and if matters like these are brought up, the company will suffer because of
a lack of goodwill and the company will not be able to pay off the bonus of the people
involved it. It is evident that this situation is ethically wrong because information has
not been given to the stakeholders who are also a part of the company and are
supposed to be allowed complete transparency. This is also an ethical because kisses
like this must not be allowed to rest because of the serious problem. However this is
to be considered that the CEO must ensure that bonuses of the people are period of
and that's the company can maintain its good image and profit making abilities.
3. Most managers would be taking immediate steps against such problematic behavior
because if this escalates into something because the harm that will be done to the
company is much higher than what will be done to the company if the same issue is
addressed at that moment (Cox, 1991). Managers will try to resolve the issue and
ensure that it does not reach other people for the while. They are most likely to release
the news of the same once the problem has been resolved.
4. Taking care of ethical issues like these in the beginning before it escalates into
something bigger is the proper decision to make. The company has to trust the

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stakeholders and present the fact that the company's management is taking search
issues like this seriously and making sure that they are being resolved as soon as
possible (Cox & Blake, 1991). This news will sit well with the stakeholders and the
shares of the company should not be harmed a lot in this way. Manager must always
think ahead and realize the repercussions of what might happen if steps are not taken
to reduce radical ethical issues.

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References:
Chen, H. J., Kacperczyk, M., & Ortiz-Molina, H. (2011). Labor unions, operating flexibility,
and the cost of equity. Journal of Financial and Quantitative Analysis, 46(1), 25-58.
Cox Jr, T. (1991). The multicultural organization. Academy of Management
Perspectives, 5(2), 34-47.
Cox, T. H., & Blake, S. (1991). Managing cultural diversity: Implications for organizational
competitiveness. Academy of Management Perspectives, 5(3), 45-56.
Hirsch, B.T., 1991. Labor unions and the economic performance of firms.
Loden, M. (1996). Implementing diversity (p. 16). Chicago, IL: Irwin.
Turner, L. (1993). Democracy at work: Changing world markets and the future of labor
unions. Cornell University Press.