1.

What enables the owners of the Metai factory profiled in this case to get away with such
awful working conditions?
The owners of the Metai factory profiled in this case to get away with such awful working
conditions. No doubt work was contracted out to this factory because its costs were low.
However, the description of the working conditions raises the question of whether it is ethical to
outsource production to such a factory, and what, if anything, companies that rely upon it as a
supplier should do about this issue. There workers are underpaid, cheated out of their extra
wages, subjected to brainwashing, forced into overtime, unsafe working conditions and denied
medical assistance when they are injured. Especially Metai makes keyboards for international
companies Dell, Lenovo, Microsoft, HP and others.

2. Should U.S. companies like Microsoft, Dell, and Hewlett-Packard be held responsible for
working conditions in foreign factories that they do not own, but where subcontractors make
products for them?
U. S. companies like Microsoft, Dell and H.P. be held responsible for working condition in
foreign factories that they do not have own product but make products for them. U.S. companies
want to earn more profits while they are compromising in quality factor where like Metai factory
is ready to work with this factor. Mostly in Chinese factories offered to U.S. Companies with
low manufacturing cost, production cost including distribution and physical materials are extent
inelastic, which often translates directly into lowering labor costs.
This burden is eventually indirectly passed down to workers, who are forced to work long hours
without over time budget at a high intensity. However, these external pressures become too great
to accept continue and workers suffer from tragedies or accident such as suicides occur, blame is

often directed at factories, while international companies at most publish a press release and vow
to implement reform.
The companies need to respond to allegations that its subcontractors are requiring employees to
work in inferior and possibly dangerous conditions for low pay. On the other hand, if the
company forces its subcontractors to improve working conditions and pay workers more, the
subcontractors are likely to pass along the costs of the changes to companies.
3. What labor standards regarding safety, working conditions, overtime, and the like, should
U.S. companies hold foreign factories to: those prevailing in that country or those prevailing
in the United States?
Regarding to safety, working conditions, overtime etc. should U. S. hold the conditions with
foreign factories which are Vietnam, Indonesia and China. Therefore, companies persists on
prevailing condition in the United States, there is unessential for U.S. companies to look for
outside countries manufacturers. Park- Poaps (2009), the foreign outsourcing firms have directly
impact on the stakeholders, retailers and governance structure in terms of the public pressure.
Nevertheless, through the pressure that U.S. companies have received from many groups of
association, the company should need to find the solution to improve the working culture and
conditions or labor standards from the Metai foreign manufacturers.
If Metai can enhance its labor standards, working conditions, company will receive benefits from
the public relations rather than putting more effort in improvement.
In current time, the American companies place gives more importance on corporate public
relation in order to answer and perform the public response. The enhancement of labor standards,
policy in foreign factories can make Metai as good company reputation. Moreover company

need to avoid the problems of the sweatshops and the improvement of education, working
cultural and a living wage should be done by the government in each country.
4. Do you think the U.S. companies mentioned in this case need to make any changes to their
current policies? If so, what? Should they make changes even if they hinder their ability to
compete in the marketplace?
Yes, the U.S. companies mentioned this case is needed to make changes in current policies
because these policies are older and poor. Today in world around changes in work environment
due to high technology. And sets all policies by international agencies because company set
product's price at world level, why set working policies at world level. So current policies are
adjustment one strategy will be to involve international agencies.
They should make changes even if they hinder their ability to compete in the marketplace their
operations by pursuing any number of avenues. The most commonplace methods by which small
companies increase their business are incremental in character, i.e., increasing product inventory
or services rendered without making wholesale changes to facilities or other operational
components.
IT companies have some obligation to the shareholders and improvement in competitive
marketplace. But new policies should be favor both own and worker, because if these policies
are get business down then it's not good for workers. Overall remain change occur in its workers
is redoubtable.