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Firestone Assignment

Essay by   •  February 7, 2019  •  Case Study  •  764 Words (4 Pages)  •  47 Views

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In the first Liberia civil war, Firestone tried not to involve with the politic turmoil as much as possible. Firestone left their investment and the local employee to the dictator’s army. In the end, Firestone decided to returned to Liberia because the new deal with Japanese’s company was a disaster and new source of rubber from Asia was inferior than the Liberia’s rubber source. Also, Firestone did not want abandon their huge investment in Liberia.  After making a deal with the warlord, Firestone started to rebuild its factory and the company became a major source of employment in Liberia. Firestone spent a lot of resources to support its local resident like building house, school, medical center and providing rubber seed to independent farmer. Firestone also treated the employee very well by offering the best wages and benefits in the region. Comparison with civil war, Firestone approach the Ebola crisis with an ethic of care not utilitarianism. The company did not abandon the country like they did in civil war. The management team stayed and risk their life to contain Ebola.

In the civil case, most of Firestone’s action is influenced by financial investment especially when they decide to return to Liberia. After left Liberia, Firestone was acquired by a Japanese rubber company but this acquisition did not improve Firestone financial at all. The new Asia rubber source did not make enough profit and the rubber quality was worse than Liberia’s rubber. When the company heard about the “slaughter tapping” the tree, Firestone finally decided to return Liberia. The social responsibility is not a major influence because Firestone was powerless to help the Liberian when the local people sought refuge at the mansion in the farm. For the Ebola crisis, Firestone’s action was influenced by social responsibility more than profit responsibility. The Firestone’s management team tried to contained the virus when they hear one of the employee’s wife was infected by Ebola virus. They were not hesitated to use company’s asset to setup an isolation ward and protect hospital ‘s staff. The Firestone’s action can also be explained on financial statement side. If Firestone management team did not help contain the virus, all operation in Liberia would be suspended and more expense would be occurred.

In my opinion, Firestone can help a lot Liberian in the civil war period by taking them as refuse. In the case, it said Firestone is powerless to take in refugee but Firestone can ask United State to send the Peacekeeping force to protect the refugee. Another alternative is negotiating with Charles Taylor for the safety of company’s asset and its employee. Firestone was the major economic power house for Liberia because the company provide many jobs the local people and paid a huge amount tax to Liberia government. Therefore, Firestone had huge bargain chip to negotiate and became a safe heaven in the war time.  



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