Ethical Practice and Theory
Ethical Practice and Theory
In the following, I have been assigned to propose a plan for the closing of the Speedy Motors assembly plant in Eastland, Michigan. This active plant closing is a sensitive yet, tragic situation for the owners as well as the employees that will be affected. The employees, their families and their complete livelihood will be affected during this closing. I would have handled this closing in a more professional manner than stated in Beauchamp & Bowie (2004) on pg. 89. Ethical and moral issues were not taken into consideration in this event. With this said, this is my proposed plan for the closing listed in the following.
The terms of the closing, which include a notice and the benefits provided for the closing should be taken into serious consideration. The text states that Speedy Motors gave less than a month’s notice on its projected closing. This may be enough time for the affected employees to find another job but, maybe for some it may not be. If the management personal and higher ranking officials foresee a financial problem within the company, this should have been addressed to the employees in a plant wide meeting. This would have given the employees a chance to start looking for another job a lot sooner and this would have made the job transition run a lot smoother. The benefit side of this closing should include aiding the employees in finding others jobs, possibly the option of relocating to another Speedy Motors facility or even compensation until the affected employees find another source of income. Another benefit is that the employees (stockholders) will get the profits that they are entitled to from the stakeholders of the corporation.
The affected stakeholders include employees, managers, local community, suppliers and customers. They all have a relationship within the corporation, in that all earn profits in one form or another. The stakeholders’ interests should be considered before the official plant closing. They all need to be treated with utmost respect and their input or opinions need to be heard, because they are all to be affected by this closing. One of these stakeholders’ opinions could possibly change the direction of the closing.
As to who’s primary responsibility it is for those laid off would be questionable. By placing the primary responsibility on one stockholder or a stakeholder at random could result in a legal battle. Could it be that the managers