Lex Service Group, Inglesby Shipyard: Recommendation Report

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Webster Hire - one the six business divisions of Lex Service Group, Ltd - is a fork truck hire business division led by Sarah Markham. Under the current manager’s leadership, spirit of employee-management cooperation is being emphasized, as well as the dedication towards the general welfare of the employees and commitment to treating employees as individuals. With these directions in general, the division has achieved outstanding business performance in the recent years, even in the period of extremely high unemployment rate, through extensive employee trainings and cost cutting efforts. Despite the outstanding performances, Webster Hire currently has a grave concern regarding the lease contract in the Inglesby Site in Southampton. Currently, Webster Hire is in the contract of supplying and servicing 16 fork trucks for the shipyard’s usage. The contract is highly lucrative, but the concern is that the working conditions in Inglesby Site are below industry-accepted standards and far below the standards in Lex Service Group’s Guidelines for Corporate Conduct. Despite the current group manager’s endeavors in many respects to resolve the problem about the working conditions - including installation of portable facilities and negotiation with the shipyard – it seems very unlikely that the working conditions would be improved to a satisfactory level. Apart from the potential subsequent loss of revenue, the firm will also lose three Inglesby service engineers, one of whom includes Joey Barton, the employee with the longest working experience. In short, the decision regarding operations in Inglesby Shipyard would be whether to continue operating in the site that does not meet the minimum working conditions, ensuring high-profit of the d... ... middle of paper ... ...dic medical examinations, if it still is reluctant about the operation in the site. Works Cited Brian Schaefer, 2008. Shareholders and Social Responsibility, Journal of Business Ethics, Springer, vol. 81(2), pages 297-312, August. Freeman, R. E.: 1984. Strategic Management: A Stakeholder Approach (Pittman, Marshfield, MA). Freeman, R. E.: 2002. Stakeholder Theory of the Modern Corporation, in T. Donaldson and P. Werhane (eds.), Ethical Issues in Business: A Philosophical Approach, 7th Edition (Prentice Hall, Englewood Cliffs, NJ). Friedman, Milton. 1970. The social responsibility of business is to increase its profits. New York Times Magazine. September 13. Griffin, Jennifer, and John Mahon. 1997. The corporate social performance and corporate financial performance debate: Twenty-five years of incomparable research. Business and Society 36(1): 5–31.

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