Ethics and Plant Closure
Situation Analysis -- ABC/DVD Manufacturing, Inc. must decide whether to close its plant in Anytown, MA. The plant closure would result in the lay-off of 50 employees. Management has asked for a brief outlining the ethical issues surrounding plant closures, and the questions apparent on profit vs. ethical behavior.
At the heart of the decision are several questions that must be considered prior to a decision. Each question plays into the overall analysis of the issue, and affects various stakeholders in different ways:
Primary Stakeholder
Affects
If plant closes, can a good portion of the employee base be transferred to other locations?
Employees: relocation of families, etc.
Company: costs for relocation.
Increased costs for corporation, but would those be absorbed by closing the plant?
Are jobs skilled or unskilled? Where will production be now (offshore?) Is it possible to relocate employees?
What affect would closure have on town?
Employees, citizens of the area.
Variable and dependent upon size and robustness of local economy. Do the salaries of these 50 people have a large effect upon the local area? Schools? Employment?
Very dependent upon size and demographics. If major urban area, employees might be absorbed into other industries. If small town, health of the town may be dependent upon ABC.
Reasons for closing?
All stakeholders
Is there a profit/loss...
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