Closing down a
factory
Please prepare arguments for and against the
following behavior:
Your company is managing to maintain a good profit margin on
the computer parts you manufacture in a very tough economy. Recently, an
opportunity has come along to move your production capacity overseas. The move
will reduce manufacturing costs significantly as a result of tax incentives and
lower labor costs, resulting in an anticipated 15 percent increase in profits
for the company. However, the costs associated with shutting down your United
States–based operations would mean that you wouldn’t see those increased
profits for a minimum of three years. Your U.S. factory is the largest employer
in the surrounding town, and shutting it down will result in the loss of over
800 jobs. The loss of those jobs is expected to devastate the economy of the
local community.
Source: Ghillyer_Business Ethics A Real World Approach 2e
Source: Ghillyer_Business Ethics A Real World Approach 2e
