MID-TERM EXAMINATION

Business Ethics
ARBAB HUSSAIN KHALID
Enrolment: 01-111192-158

Case Study: The Ugly Face of Fashion

Q 1) From rights-based perspective, how do you evaluate workers’ condition at

Khaadi? Which of their rights seem to be violated?
Ans) From the right-based perspective it has been noticed that employees at Khaadi are not
even considered to be given the basic right of clean water and restroom and lunch breaks. The
right for speaking up against the unfair decisions of Khaadi management, cost a lot to its
employees which resulted in firing 32 workers from job is a huge violation of power as well
as basic rights of an employee. Another violation is deduction of money from employees on
an account of Employees Old-Age Benefits Institution but not issuing them with EOBI cards,
for claiming the funds in future. Holidays are also an integral part of basic rights, which has
been taken by Khaadi towards their employees, making them work on holidays too.

Q 2) Can Khaadi justify treatment of its workers on utilitarian grounds?

Ans) On utilitarian grounds, Khaadi is not even near to justify the kind of treatment it has for
its employees, just because of worse and strict behavior of superiors with the employees,
where not a single employee is getting an action or policy that could benefit them in any
manner. Where is a utilitarian ground imposes a social and economic happiness towards
people according the situation and resources.

Q 3) What ethical obligations are created on Khaadi from the position of ethics of care?
Ans) From the position of ethics of care, Khaadi is supposed to take a very close and good
care of its employees because it ties a concrete relation with all of them. These stores of
Khaadi are operationally run by these employees that work 12 hours a day. Another reason
Khaadi is obligated is because these employees have high number dependency on Khaadi, as
the company is the bread earning platform for the employees.
Hence the ethical obligation, Khaadi must enforce is to give their employees a leverage on
using restrooms, break time according to standard timings and not less than that. Providing
them with the basic need of clean drinking water, pay for overtime work, registering their
employees with social security and old age employee benefit institutions, for a secure future
after they stop working anymore.

Q 4) With the perspective of Marxism, what do you think is happening to the workers in
the textiles and fashion industry?
Ans) Looking from the eagle eye’s view of Marxism, the current situation of workers in the
textile and fashion industry is as poor as one can ever imagine. The employer who hires an
employee, considers an unfair right of maximizing their negative powers over them, in other
words the rich becomes richer, the poor becomes poorer. As we studies in Khaadi’s situation,
no employee can ask for basic organizational ethics right, not even clean drinking water, and
in case if they stand up against the upper authorities what they get is a straight resignation
letter and are thrown away. The people working in textile industry are also depended on such
companies as from years they develop a skill in themselves regarding a specific field or
industry of fashion and clothes, which they cant use somewhere else, hence leaving them noi
choice except listening to the authorities.