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Business Ethics

Essay by   •  March 27, 2011  •  740 Words (3 Pages)  •  739 Views

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Clearly there are two very valid arguments to consider. On one hand the reason why entrepreneurs go into business is the satisfaction of working for themselves and the drive to become successful. In that the freedom to make executive choices are necessary to work toward that success. If that decision-making right is restrained in favor of others than how can a business owner freely operate? On the other hand there are hundreds and sometimes thousands of employees, and the families they represent; giving years of service in these companies to support their responsibilities. Though that is not the main concern to the failing business executive it should be considered. On an ethical perspective the employees depend on this for their very survival. So which is more important, the struggle and survival of the employees or the profit to the business owner? That shouldn't be hard to answer however it is a valid point and the very argument, along with some others, of lobbyist. Investors come into to business opportunities knowing that there is a possibility of the business failing and that they may lose in the deal. However people who simply work to survive depend on the money they make. Some stockholders make risky investments and that's part of the process. But how do you tell either party that their interests aren't as important as the other.

In this particular case the factory felt obligated only to the stockholders. Again ethically this was a bad choice. There should have been some sense of responsibility to the stakeholders. Stakeholders are all parties involved who affect and will be affected by decisions of the company. If the situation was diagnosed early on then at that time prevision to pre-warn employees should have began. First I would have started by giving notice to employees that due to the fall in sales there is a possibility of the plant closing in the near future. I would organize and issue a tentative itinerary of possible rounds of layoffs. I would set the layoffs in order of seniority. In some small way let the employees see you are being as loyal as possible in this situation and that you are acknowledging the time they have put into the company. Also, it would be important to keep the most experienced workers for as long as possible. I would want to give an advance notice on the type of financial benefit as well as medical benefit they should look forward to receiving. This will give them time to make arrangements for the future.

Employees are not the only stakeholders there are also other businesses who depend on doing business who will potentially suffer. Stakeholders, again, are any group of people who are

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