Management Problem Sets

Problem Set 3 for Group 3
ZHAO XUAN 13103465D
CHAN YUET CHING 13087084D
ZHOU YONG MEI 13102452D

Question 1
Exporting used batteries to
Mexico
Lead

US
High standard

Mexico
Weak law and control $0.05 per pound $0.42 per pound

 Business ethics
 the accepted principles of right or wrong gov

erning the conduct of individuals engaged in business activities

1 (a)
 Are US companies that export used batteries

to Mexico and follow local regulations in their acting in a socially and ethically responsible way?  Employment practices
 Environmental pollution

Employment practice
 Condition

A failure to protect worker against toxic c hemicals --------lead smelted in furnaces
-------- release about 20 times as much as US equi valents -------- high lead level of blood

Disassembling Used Lead
Batteries in Vietnam

A open furnace

Environmental polluti on  Air pollution

 Water pollution
 Soil pollution


-----2000 parts per million, (soil of schoolyard)



5 times US limited for the children’s playi ng area

Health problem

 Should the companies be held to higher stand

ards the United States demands?

 In ethical way, they should.

 Global commons
 Social responsibility

Common
 Global commons

everyone benefits but no one is respons ible  Global tragedy of commons

Legal but harm all the human being

Social responsibility
 the business people should consider the social

consequences of economic actions when makin g decisions.
 Moral obligation
 Warm glow effect
 Reputation effect

b
 Some companies like Johnson Controls export

their batteries to Mexico for recycling, but foll ow US standard, even though it puts them at a cost disadvantage.
 Would you be willing to pay more for a new b

attery or to have your old battery recycled if J ohnson Control passed these additional costs on to the consumer?

b
 Decision making

YES

OR

NO

Decision making
Willing to pay more Responsibility
Quality
Reputation of compan y Other companies