YOUR FRIEND MANAGES A RETAILER THAT HAS A HISTORY OF SUPERIOR PROFITABILITY. SHE BELIEVES THAT ONE OF THE PRINCIPAL SOURCES OF COMPETITIVE ADVANTAGE FOR HER ENTERPRISE ARE LOW LABOR COSTS. THE LOW LABOR COSTS ARE DUE TO HER HIRING OF MINIMUM-WAGE WORKERS, THE DECISION IS NOT TO GIVE THEM ANY BENEFITS (SUCH AS HEALTH BENEFITS), AND HER CONSISTENT OPPOSITION TO UNIONIZATION AT THE COMPANY (THE WORKFORCE IS NOT UNIONIZED). ALTHOUGH SHE ACKNOWLEDGE THAT THIS APPROACH DOES LEAD TO HIGH EMPLOYEE TURNOVER, SHE ARGUES THAT THE JOBS ARE LOW SKILLED, AND THAT IT IS EASY TO REPLACED SOMEONE WHO LEAVES. IS YOUR FRIEND’S APPROACH TO DOING BUSINESS ETHICAL? ARE THERE WAYS OF ACHIEVING LOW LABOR COSTS THAT DO NOT RELY UPON THE HIRING OF MINIMUM-WAGE WORKERS? WOULD YOU COUNSEL YOUR FRIEND TO USE AN ALTERNATIVE APPROACH?
