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Unit 1 - Ethical Theory, Business Practice, and the Corporation

Ethical Theory, Business Practice, and the Corporation

Chantal McDonald

BUS207-0702A-08: Business Ethics

In this assignment I am to read the case study entitled, "Shutdown at Eastland", and explain how would I handle this situation? Propose a plan to close the assembly plant in Eastland, Michigan. Lastly to explain the following:

* Terms of the close - what notice would you give what benefits would you provide, etc.?

* Describe all of the affected stakeholders and how their interests will be considered.

* Who do you propose should take primary responsibility for those laid off as a result of the plant closing?

* How will this news be communicated to the workers, press, and community?

Putting people out of work is not an easy thing to do, if you have a heart at all. Sometime things can't be prevented and closing down a company is an inconvenience for all. If I had to handle this situation the first thing I would have done is to have given an advance notice. I am sure that at some point the owners of the company knew that this was in need of happening and giving the people a chance to save up money and prepare for this, is what I would have been thinking about. Next I would have reached out to look for assistance forms every government agency, or business agencies for any and all assistance. If it was about money, I would have sold my accounts payable contracts and leased out some equipment to help issue severance packages to the employees to live on till something better came along.

Proposed Plan:

* Terms of the close

1. 3 month advance notice of closing.

2. Paid medical and dental benefits for 6 months. Option to keep paying same rates till new coverage goes into effect.

3. Setup resumes writing companies and job assistance agencies to help employees with job search.

Stakeholders: Groups who are vital to the survival and success of the corporation (pg. 58).

* People affected by close (pg. 58-60).

1. Owners - have financial stake. Try to save retirement income.

2. Suppliers - for final product's quality and price. Work out payment plans to reduce monthly payments.

3. Management