Question

Fine Clothes Company buys clothing assembled by Gamma, Ltd., a foreign firm that employs young children for long hours and low pay. Gamma's nation does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Fine Clothes' connection to Gamma and plans to reveal this information. Before HIP does so, however, Fine Clothes publicly releases the information itself and announces that it is severing its relationship with Gamma. Fine Clothes publicizes its action in its advertising, and the company's sales and profits increase, apparently as a direct result. Has Fine acted unethically in any way? From an ethical perspective, is Fine Clothes' conduct in this situation more important than whatever its motive might be?

Answer

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