1. What enables the owners of the Metai factory profiled in this case to get away with such awful working conditions? The owners of the Metai factory profiled in this case to get away with such awful working conditions. No doubt work was contracted out to this factory because its costs were low. However, the description of the working conditions raises the question of whether it is ethical to outsource production to such a factory, and what, if anything, companies that rely upon it as a supplier should do about this issue. There workers are underpaid, cheated out of their extra wages, subjected to brainwashing, forced into overtime, unsafe working conditions and denied medical assistance when they are injured. Especially Metai makes keyboards for international companies Dell, Lenovo, Microsoft, HP and others.
2. Should U.S. companies like Microsoft, Dell, and Hewlett-Packard be held responsible for working conditions in foreign factories that they do not own, but where subcontractors make products for them? U. S. companies like Microsoft, Dell and H.P. be held responsible for working condition in foreign factories that that they do not have own product but make products for them. U.S. companies want to earn more profits while they are compromising in quality factor where like Metai factory is ready to work with this factor. Mostly in Chinese factories offered to U.S. Companies with low manufacturing cost, production cost including distribution and physical materials are extent inelastic, which often translates directly into lowering labor costs. This burden is eventually indirectly passed down to workers, who are forced to work long hours without over time budget at a high intensity. However, these external pressures become too great to accept continue and workers suffer from tragedies or accident such as suicides occur, blame is
often directed at factories, while international companies at most publish a press release and vow to implement reform. The companies need to respond to allegations that its subcontractors are requiring employees to work in inferior and possibly dangerous conditions for low pay. On the other hand, if the company forces its subcontractors to improve working conditions and pay workers more, the subcontractors are likely to pass along the costs of the changes to companies. 3. What labor standards regarding safety, working conditions, overtime, and the like, should U.S. companies hold foreign factories to: those prevailing in that country or those prevailing in the United States? Regarding to safety, working conditions, overtime etc. should U. S. hold the conditions with foreign factories which are Vietnam, Indonesia and China. Therefore, companies persists on prevailing condition in the United States, there is unessential for U.S. companies to look for outside countries manufacturers. Park- Poaps (2009), the foreign outsourcing firms have directly impact on the stakeholders, retailers and governance structure in terms of the public pressure. Nevertheless, through the pressure that U.S. companies have received from many groups of association, the company should need to find the solution to improve the working culture and conditions or labor standards from the Metai foreign manufacturers. If Metai can enhance its labor standards, working conditions, company will receive benefits from the public relations rather than putting more effort in improvement. In current time, the American companies place gives more importance on corporate public relation in order to answer and perform the public response. The enhancement of labor standards, policy in foreign factories can make Metai as good company reputation. Moreover company
need to avoid the problems of the sweatshops and the improvement of education, working cultural and a living wage should be done by the government in each country. 4. Do you think the U.S. companies mentioned in this case need to make any changes to their current policies? If so, what? Should they make changes even if they hinder their ability to compete in the marketplace? Yes, the U.S. companies mentioned this case is needed to make changes in current policies because these policies are older and poor. Today in world around changes in work environment due to high technology. And sets all policies by international agencies because company set product's price at world level, why set working policies at world level. So current policies are adjustment one strategy will be to involve international agencies. They should make changes even if they hinder their ability to compete in the marketplace their operations by pursuing any number of avenues. The most commonplace methods by which small companies increase their business are incremental in character, i.e., increasing product inventory or services rendered without making wholesale changes to facilities or other operational components. IT companies have some obligation to the shareholders and improvement in competitive marketplace. But new policies should be favor both own and worker, because if these policies are get business down then it's not good for workers. Overall remain change occur in its workers is redoubtable.
