Plant relocation *** CONFIDENTIAL ***
We have discussed previously the issue of relocating one of our plants. I have received back from the consultant a report that outlines what she thinks are our best options. This report will present her findings.
Fact Summary: The consultant identified Mexico, the Philippines and South Africa as potential sites. Her findings are summarized in the following table
Mexico
Philippines
South Africa
Wages
$3/day
$1/day
$10/day
Living wage?
Maybe
Union strength
Minor
Moderately strong
Scandal risk
High
Low
Moderate
Environment Regs
Some
Few
Some
Environment Cost
Low
Low
Moderate
Env. Scandal risk
High
Low
Low
This table illustrates the issues on the table that form part of the ethical dilemma. South Africa has environmental regulations and union strength more akin to a developed country, but with lower wages and abundant labor supply. Philippines is basically anarchy, with no regulations, no enforcement, and rock bottom labor costs. Mexico sits somewhere in between, but in a border town we are more exposed to scandal than in a far-flung country on another continent.
Ethical Dilemma:...
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