This paper is an analysis of the closing of Speedy Motors Company's assembly plant in Eastland, Michigan and what might have been done differently. Speedy Motors Company (SMC) gave less than a month notice before they laid off nearly 2,000 workers and closed the facility. This facility had been providing jobs for the community for over 20 years.
Terms of the close, the plant should feel morally obligated to provide at least 60 days notice. "The Worker Adjustment and Retraining Notification Act is a federal law requiring employers to provide workers, their unions, and state and local government officials sixty days advance notice of any plant closing or mass layoff". (FindLaw, 2002.) This law applies to any private sector employers with at least 100 employees and are either closing the plant or laying off at least 33% of the employees.
As far as the benefits provided to the employees, attempting to find other jobs for the employees in one of the other SMC plants (especially with Management level positions) would go a long way for all parties. It would create goodwill in the closing and hiring already trained persons could cut cost in the long run. This may involve a move on the employees' part, but at least they would have the opportunity to keep their tenor with SMC. Depending on the contract signed by each employee, a severance may be in order. Also, setting up a short term employment office might be a good idea to get jobs for employees that cannot be relocated.
Stakeholder can be defined as "everyone with an interest (or "stake") in what the entity does". (Stakeholder, n.d.) That includes not only its vendors, employees, and customers, but even "members of a community where its offices or factory may affect the local economy or environment." (Free Definition, 2004). This definition clearly states all of the affected stakeholders. This closing would most definitely affect the entire community as the plant has been open and running in this city for over 20 years.
Attempting to place as many employees as possible at other plants across the nation would be the best way to help the employees as stakeholders. That considered with severance and 60 days notice, more than necessary had been done in keeping the stakeholders' interests in mind.
The primary responsibility would have to fall on the corporation as a whole. What other options they contemplated before deciding to close the plant cannot be known at this point, but there had to be some sort of "work around" that could have been attempted.
People organization or groups that have a direct or indirect interest in a one particular organization or surrounding are called stakeholders.
A stakeholder is anyone whether involved or not involved that is interested in an outcome to a situation (Editorial Board, 2015).
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
5. Bronfenbrenner, Kate. Final Report : The Effects of Plant Closing or Threat of Plant Closing on the Right of Workers to Organize, Submitted to the North American Commission for Labor Cooperation, September 30, 1996.
The first alternative of keeping the plants in the US would mean that Eletrocorp obeys the strict environmental and safety regulations, pays its workers $15/ hour, but avoids the loss of jobs in the US. The company would incur high production costs. The second alternative of relocating plants to South Africa would create a job loss in the US. The company would save costs by hiring workers for $10/ day and obeying less strict safety and environmental standards. The strong labor union could cause problems in the future. The third alternative of relocating to Mexico would have the same effects as relocating to South Africa, except that the wages for workers are $3/ day. A larger amount of costs could be saved, although Electrocorp would have to pay attention to citizen health groups which could cause bad publicity. The last alternative of relocating to the Philippines offers the highest cost savings due to the least strict safety and environmental regulations, no activist groups and the market pay rate of $1/ day.
In 1980, General Motors’ executives were faced with a dilemma regarding new plant construction in Detroit, Michigan. GM intended to close two of its aging facilities and rebuild new assembly plants at a different site location although still in the Detroit metro area. The only land site matching the construction specifications was a settlement called Poletown, Michigan. This township was home to more than 3,500 residents, all of whom would have to be relocated if construction were approved. The following is an analysis of this dilemma according to the four quadrants of The Executive’s Compass: Liberty, Equality, Community, and Efficiency.
operators, engineers, and firemen abandoned their work and the rest of the workers declined to
Do you agree with Schmeltekopf that business schools are not preparing students well for the for the ethical challenges they will face in the workplace? Why or why not?
Explain the connection between the economic model of corporate social responsibility and “free market” or “neoclassical” economic theory.
If I stayed open, my employees would need to help, and this might be hard for them since they probably would want to be with their families in a time of crisis.
The prioritization of employees is important to competitive advantage and therefore business success has understood that specific notice has been given to the retention of highly skilled or except...
Stakeholder is any groups or individuals that are affected by the attainments of the organisation’s goals. [] In this situation Coca-Cola situation we can determine following group of stakeholders. They include local communities, employees, customers, suppliers, competitors, countries, law, and government regulatory parties.
Ethics is the study of right or wrong and the morality of the choices that individuals make. That basicly means the set of morals or responsibility that a person, group, or field have. Ethics can also be classified as code of morals. In business there are ethics that portray to business. These are called business ethics, business ethics just happen to be the application of ethics, morals, into the business field. Some examples of business ethics are obeying all rules and regulations even when nobody 's looking, which is pretty self explanatory, you shouldn’t be breaking rules. Even if it is as simple as washing your hands after you use the restroom or straight up lying to your customers, they are the ones making you money so if they find out
Layoffs are widely considered to be negative life events associated with depression along with economic decline and numerous amounts of other health issues. Many studies have shown that there is a direct link between physical and mental illnesses that have occurred in former workers and layoffs. Even though there has been proof of these effects and layoffs there is still the fact that there is no way to avoid laying off workers. This issue affects hundreds of people in America a year though there has yet to be any advances towards preventing this issue.
This is a very simple business organization to quit as well. When the owner wants to stop doing business they can simply stop taking new business.