Question

An american executive of a multinational home-furnishings chain finds that one of the company's production units in philippines employs children to work in its factories. however, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution, if they lose their jobs. the executive finds that all the available alternatives seem ethically unacceptable. in this example, the american executive faces the free-rider problem. an ethical dilemma. a veil of ignorance. the tragedy of the commons.

Answer 1

An ethical dilemma. The American executive is forced to make a decision between forced child labor or, presumably, forcing children into prostitution. The executive must make an ethical decision based on his assumptions for the ethical effects of his decision.