Critical Evalutation on Pacfic Brands Case Study

The management issue, ethical responsibility can be identified when the company Pacific Brands had announced that they were closing all seven factories in Australia and moving the manufacturing overseas due to the fact that labor would be much cheaper overseas as well as Australians would be paying less money for the same clothes. This highlight’s Pacific Brand’s action to take the company overseas, being negative aspect of ethical responsibility. This selfish act would give the business a bad name/reputation.

A multinational company may move its manufacturing facility to a developing country to reduce costs. Practices acceptable in that country, such as child labor, poor health and safety, poverty-level wages and coerced employment, will not be tolerated by an ethical company (Lynn MacDonald, 2011). Pacific Brands has displayed no duty to follow a morally correct path with the organization in terms of ethical responsibility. Although It can be argued that this action to move overseas would increase employment opportunities overseas.

Another management Issue hat can be seen by Pacific Brands Is corporate social responsibility. The public Image displayed Is not very positive as It was evident Pacific Brands portrayed no sense of care for the current 1850 employees that had been working for the company. The company Is now seen as a foreign organization displaying the disadvantages of corporate social responsibility. This Is also not good for the Australian economy as the manufacturing Is done over seas for cheaper labor. Pacific Brands has not embraced responsibility for the company’s actions and encourage a positive Impact through their employees.

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