Electrocorp Case Study

Growing labor and environmental regulation in the United States are increasing production costs and causing profits to decline. This issue has forced our competitors to dislocate their operations to less developed countries in order to save on costs, and we should follow similar steps if we want to stay competitive in the market. Out of the three countries suggested by Ms. Smith, Mexico seems to be the most viable choice given the low labor costs, lax environmental regulations and the close proximity of the country compared to the other two options. Nevertheless, in doing so, Electrocorp should still uphold its ethical values by ensuring safe working and environmental conditions as well as reasonable labor wages. To best understand the situation

Despite the fact that typical wages for plant workers similar to Electrocorp are $3, the employees in Mexico should be offered higher than the standard wages to provide for reasonable living conditions. Higher than regular wages will still be lest costly for the company then in the United States and will greatly improve quality of life of the employees considering the low standards of living in Mexico, where “the median level for Mexican family income becomes the equivalent of that of a U.S. family of four with an income of $12,287” (Mexico) In offering higher wages, the company will not only promote fairness and loyalty among its employees, who are the most valuable assets in any company, but will also attract quality pool of applicants and enhance the quality of its human capital. Electrocorp should also find sources for cheaper depository capsules to continue practicing safe environmental operations at lower costs. Our planet is the one and only home that we have, and practicing environmental friendly operations is the ethical obligation of all of us no matter where on the planet we are located. Thus, continuing to be mindful of the environment and taking precautions to protect it at lower costs, will save the company money, prevent adding to pollution for future generations and add value to our reputation as responsible corporate