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Closing down a factor:

Prepare arguments for and against the following behavior (at least one paragraph each):

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 U. S.- 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.
Business Ethics Now, 4th Edition
ISBN-13: 9780078023200 See more

Author(s): Ghillyer, Andrew

Chapter 4 / Corporate Social Responsibility • 85

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