Download A Matter of Ethics

Glencoe Accounting Advanced / 148073547
Glencoe Accounting Advanced Course
Chapter 5: Accounting for Inventories
A Matter of Ethics
Profits vs. Cheap Labor
Imagine that you purchase inventory for a
clothing store that sells quality clothes at low
prices. Recently you learned that one of your
vendors has sewing plants in a country where child
labor is legal. You consider finding a manufacturer
who uses only adult labor, but you know that the
clothes will cost more. You also know that
changing vendors will affect your company’s
profits.
Ethical Decision Making:
• What are the ethical issues?
• What are the alternatives?
• Who are the affected parties?
• How do the alternatives affect
the parties?
• What would you do?
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