various stakeholders in the Acme motors
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For multinational corporations, friction costs arise where practices of the firm are seen by the public as exploitative or unethical. These actions lead to public criticism and loss in the value of the company's goodwill and may translate into measurable sales losses.
There is growing evidence that a corporation's image can become a competitive advantage due to positive gains in consumer approval. In the U.S., there are a number of indications that so-called "green consumers" represent an increasingly important niche in various sales markets, and companies that are environmentally exemplary and go beyond the minimum legal requirements can gain market advantages.
Empirical studies reveal a positive correlation between ethical conduct in a corporation and job satisfaction. The studies reported by the Novaris Foundation for Sustainable Development (http://www.novartisfoundation.org/) indicate that structures within a corporation that transmit an ethical and cooperative commitment to employees boost motivation to work. For more study on business ethics and social responsibility, view some of the many links at Regent (http://www.regent.edu/general/library/subjects/business/ethics.cfm)
Acme Management and stockholders
Maquilodora workers
Consumers
Mexican government
Your task is to obtain relevant information on the different stkeholders listed above and then comment from each stakeholder perspective on the interests at stake in the Acme Motors scenario in Mexico. Also provide brainstorming ideas on possible management strategies for addressing the situation given what you have learned in your research.
Be sure to identify the objectives and interests of all relevant parties in the scenario. Your presentation should be a well thought out analysis which includes current global economic and political policies that impact company business decisions.
It sYour research should, include both the conclusions drawn from your own applied knowledge and understanding along with research or statistic material.
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Solution Summary
Interests of the various stakeholders in the Acme motors scenario are presented.
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Interests of the various stakeholders in the acme motors scenario:
Acme Management and stockholders : Acme management and stocholders have a direct interest in the Acme motors scenario in Mexico. The main purpose of shifting operations to Mexico is cost savings, which, in turn, means improved operationg margins and bottom line profits, thereby resulting in better return on stockholder's investment. Acme management will be utmost concerned about the productivity, employee motivation and overall performance of operations at the Mexican operations to make this venture successful. At the same, they are also concerned about their corporate social responsibility and ethical conduct to maintain a positive corporate image in the eyes of public, stockholders and government. Outsourcing US operations to other countries already results in negative image and thus, Acme's management will do their best to adhere to best possible ethical conduct in these overseas operations.
As management and stakeholders of the company, it is their utmost concern to keep their employees happy and satisfied and provide them best working conditions. This will not only improve employees's morale and productivity, but will also ensure their life long commitment towards the company. From ethical point of view also, if such inhuman policies will continue at the oranization, the day is not far when company will have to shut down its ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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