1) The primary reason for the Ohio Art Company's decision to move production to China was simply to stay in business. When asked whether this was an ethical decision, you need to look at the company as a whole and not just the good of its employees. While the ACO has moral obligations to its employees, it also has moral obligations to stakeholders as well. OAC's main goal was to keep overall costs for its most popular product, "Etch-A-Sketch," under $10 or risk losing money. From an economic perspective, Americans would get lower prices and lower overall costs by moving to China, while the move would offer Chinese villagers better-paying jobs and perhaps a better life. A win/win situation if you ask me. According to the Friedman Doctrine, it states: “that the only social responsibility of business is to increase profits, as long as the company follows the rules of the law”, and here the OAC did not break any laws while moving its company to China . However, in this case the social costs were high. Although only 100 workers lost their jobs, the small town of Bryan, Ohio, only had a population of 8,000 people. For many this was their primary source of income, and because of this loss, most were unable to keep up with the mortgages that were forcing them into foreclosure. Not only did former OAC workers lose their jobs, but they also lost families. It would be possible for OAC to continue its production in the small town of Bryan, Ohio, but the company was already losing money for the last two consecutive years and if this trend continued it would drive it into bankruptcy. So in this case, OAC made the ethical decision to stay in business and maximize profits by slowly moving their company to China. 2) When asked if it is ethical... middle of paper... it is a company that takes advantage of exploited labor and contributes to improving its image as a family business. They must immediately go directly to China and see for themselves the conditions that Chinese workers at the Kin Ki factory face every day. They should also work with China to improve factory working conditions, raise employee wages, provide pension plans, health coverage and employment contracts for all workers, improve dormitories and meals for workers while imposing a work week of 40 hours. Managers should also hire and train a regional manager to oversee improvements in the factory. He/she will be responsible for enforcing all new rules and regulations and should establish a zero tolerance policy to ensure that the company does not risk the fear of being labeled as a business that profits from the exploitation of others.