Answered! Acme, Inc. is a clothing manufacturer that employees 1,500 people in the state of New York. Unfortunately, it has…

Acme, Inc. is a clothing manufacturer that employees 1,500 people in the state of New York. Unfortunately, it has experienced two straight years of business losses and must increase profits in order to stay in business. Acme is bidding on a contract with a major retail chain, and must come in as the lowest bidder in order to win the contract. In order to cut costs, Acme is considering purchasing T-shirts from China from a company that is known for cheap labor and sweatshop conditions.

Please provide your thoughts about the below answer: (100 words)

When looking at the negative ethical implications of using the lowest bidder as Acme has been contemplating, I would make the decision not to go with the company. It may be a good idea to look to see who the next lowest bidder was and see where the ethics lie. Using a company with extremely low wages and sweatshop conditions would do harm to the Acme company, the retail chain in China and society as a whole in both countries. I understand that the Acme Company has had two straight years of business losses but the cheapest way to go is not the best in this case.

Expert Answer

 When it is already in losses and it takes this step of cutting costs by taking cheap material, it owuld be a big loss for Acme as it may go much lower. It is not ethical to cheat the customer by providing them low rates and giving cheap material. It is better not to go with this company as it might take some other drastic step in the process in future to reduce costs. So the decision is best not to choose Acme.
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