corporate social responsibility

American mining manufacturing company Caterpillar has announced the closing down of the
Tasmanian production line which is carried out in the small town of Burnie. 280 jobs will be lost due
to the foreclosure later this year, with 100 employees to stay behind to work in product support and
engineering. Caterpillar is one of the many large scale business’s to close in recent times, as
Tasmania is undergoing the highest percentage of unemployment it has seen in years, 7.9% (Cook,
2015). The continuance of company closures throughout the state will only push workers to look for
jobs elsewhere. The drop in price of Iron Ore (ABC News, 2015a) has hit the mining manufacturing
company hard, as it has decided to move its manufacturing line to Thailand in order to cut company
costs. Although Caterpillar continues to create a profit in Tasmania, Thailand offers an escape to
regain what they have lost via more cost effective labour. The current CSR that Caterpillar is enacting
reflects the interests that Friedman (1970) describe as adding shareholder value.

Key Issues
Issue 1: Increased job losses to hit Tasmania
Recently Caterpillar has announced that their mining manufacturing enterprise is to be closed
down in the town of Burnie. The foreclosure of this manufacturing company, which has provided a
stable income for locals over the years, is one of several major companies that once helped
Tasmania’s economy stay afloat. Although the company is not making as much profit as it once did
via the state of Tasmania, it is yet to turn a complete loss………..

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