1. Contents

1 Summary

2. Visualise the Dilemma – Original Approach

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2.1. Dilemma: The shareholder vs society dilemma

3. Values

4. Kohlberg’s Model – Becoming a Moral Leader

5. Conclusion

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5.1 Key Learnings:

1           Summary

The dilemma concerns the societal demands and needs against the organisation’s goals, mission, values and vision. Are the Global Sourcing and Operating Guidelines in line with actual needs of society?

The garment industry in India contributes 17% of its foreign earnings and employs over 35 million workers across five major garment production hubs. India is the second largest producer of textile and garments with a total export revenue of US$10.17 billion during 2008 -2009 (“Brief Guide to Garment Manufacturing and Child Labour in Garment Sector in India,” n.d.)

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India is a country known for the exploitation of child labour that does not place high standards of social responsibility. Suppliers prefer to place a greater importance on the quality of the product but do not exercise the same importance of control on child labour.

In the case of AVANDA, the dilemma for Jake is what will happen to the children working under the minimum age of 15, if his team were to terminate the terms of engagement of the two new suppliers who did not fully comply with the Global Sourcing and Operating Guidelines. However, the working conditions that the suppliers provide are very good compared to a majority of suppliers, namely: new factory buildings, safe working conditions, safe machines and equipment, healthy and safe working conditions and a staff canteen (N. M. Pless & Maak, 2012). (see Exhibit 1)

Jake and his team have to weigh up the very good working conditions against the child labour issue.

In recommending a final decision, it’s important to take into account the various shareholders that could be impacted by any decisions (Maak & Pless, 2006). These are summarised as follows.

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