Question

Ethical Considerations. With globalization comes interacting with nations and cultures across the face of the Earth. Describe a situation that has arisen in the news in which a US company has encountered what may be considered an unethical circumstance. How was it remedied? What were the salient points? What was impacted? Conversely, you can choose a situation wherein a US-based company has acted unethically overseas. There too describe the situation, the remedy and impacts.

Answer 1

Starbucks, a Coffee Caffe chain in US has faced a situation which came in news and can be deemed as unethical circumstance for company wherein two brown customers who visited the restaurant but did not ordered anything were allegedly arrested out of no reason and kicked forcefully out from the restaurant while they were having conversation with each other on the basis of grounds that they just came to sit idle and create chaos. After facts were revealed the two brown men had been sitting there to wait for their friend and turned out to be completely innocent. Thus a racist charge was put on the company as it was pretty visible that white manager deliberately asked the barista to drag them out because of their race or colour. This became a controversy for the company and the company immediately tried to rectify the situation by terminating the culprits involved. Moreover about 2000 of its cofee shops were closed for few days so that staff can undergo racial bias training. The salient points about this incident were that protests broke out after the white manager was alleged to have acted racist. It was the Starbucks brand image which was most impacted due to the racist claims.

The Apple Incorporate, a multinational company dealing in Information Technology has globalised it's operations and expanded in China also. It has been recently alleged of treating its chinese employees unethically in the manufacturing outlet at China . As allegations made by kne of the worker who had said "They make us work like machines, they treat us like animals" which attracted a lot of attention of both regulatory bodies as well as the general public. The investigation was conducted and it was revealed that Apple made its Chinese workers to work excessively, exceeding the standard working hours. The workers worked in poor environmental conditions and were underpaid resulting in very poor standard of living.

The remedy was the declaration of Apple on the situation in which he denied and refused to such claims , indirectly trying to cover up the situation and presented a report showing that the workers worked under good conditions. This impacted the good will of the company in the eyes of regulatory bodies.

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