Szasky’s next course of action must be to consider China for manufacturing the products. It is because, Szasky and his management team have observed that, TerraCycle is losing more money on each of its sale due to high labour cost and operational cost. If the manufacturing process gets shifted to off shore (China), the company could save almost 50 per cent of the manufacturing costs. From the environmental point of view, considering China as a manufacturing point would increase the demand for natural resources.
According to me, Szasky could maintain headquarters of TerraCycle by locating the manufacturing point at China. I also think that, Szasky could keep in mind the company’s reputation, social/human impacts and environmental impacts while taking a decision related to the manufacturing.\n2. I felt that shifting the operations of manufacturing to China as the best course of action because the company could save its operational cost if the raw materials are sent to China in order to get manufactured.
If the company does not shift its manufacturing operations to China, it would be bearing huge expenses that makes the company experience the losses even more.
TerraCycle does not consider equal pay for equal work policy from the beginning of its establishment. But if the company starts making loss, the workers working over there would not receive wages on regular basis which would be an unethical act by the company towards the workers. Irregular wages would make the workers quit the workplace. This would reduce the productivity of TerraCycle.
China also provides a healthy environment for the global companies by enabling those to reduce the manufacturing costs.
Another advantage of starting a manufacturing line in China is that, any international or domestic companies could direct its route to China as it has a well-developed infrastructure. This provision would help TerraCycle to ship its raw materials to China. China also has high labour input who are talented and are literates, this helps the TerraCycle to hire more of labour which showcases ethical behaviour of the organization towards the workers.
The population in China also have a high level of ethical values as they maintain strong bonding with their family, friends, neighbours etc. they get acquainted with others easily. This shows that the workers in China would be having social responsibility and workplace ethics in them. So, Szasky as a best course of action for his company, could maintain the main headquarters of TerraCycle in New Jersey, as the company has more of public reputation in United states and extend its manufacturing process to China.