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Considering Stakeholders in Relocating Manufacturing Plants

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Http://wpweb2.tepper.cmu.edu/ethics/AA/mgmt05-case.pdf

Read "Something's Rotten in Hondo." Now write a response that addresses the following:

- Identify the stakeholders in this affair and what their primary interests might be.
- Think of any environmental laws that would apply to the case and decide if the government acted legally. If no laws apply, indicate why.
- Now examine the case from an ethics viewpoint - if the categorical imperative theory had been applied, would would the result of the case be?
- How would this change with an application of utilitarian theory instead?
- Do the same for the rights and justice theories.
- Finally, make a recommendation to the business based on what you have thought about above. Please try to include at least 3 separate reasons for your recommendation.

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Solution Preview

The solutions are based on environmental law, but I cannot determine how to access eguide.

The stakeholders in this case are the employees of the Ardnak Plastics Inc, the community of Hondo, families of the employees, the stockholders, residents of the community in Mexico, the EPA, George, Bill and other executives of Ardnak. Residents of Hondo have an interest in remaining healthy, with lower levels of pollutants. They also have an economic interest, which may be seriously jeopardized if the plant moves. Employees who work at Hondo contribute greatly to the local economy. Residents in Mexico have an interest, in terms of the effects on their health of the pollutants. They also have an interest in economic gains that might be made by having greater numbers employed in the plant, if it should move. Shareholders have an interest in receiving a good return on their investment, so anything that jeopardizes this, like shutting down the plant or continued fines is their interest.

The environmental laws do apply, in that the level of pollutants being emitted is over the limit set by the EPA, which is mandated by the Federal Government. Even if the plant runs at night when the EPA is not there, a legal requirement is still in place. "Virtually every possible environmental problem or situation is addressed in some manner by both federal and state statutes and regulations"(wildlaw.org, nd). Air is covered by the Clean Air Act, just as water is covered by the Clean Water Act. The EPA, as the environmental ...

Solution Summary

The solution involves an investigation of the effects of stakeholders, when a corporation such as Ardnak Plastics decides to relocate to Mexico, to avoid EPA regulations. A variety of ethical theories are applied to this case and the consideration of all stakeholders involved is discussed.1031 words with 4 references.

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See Also This Related BrainMass Solution

Corporate Responsibility Issues in Manufacturing

Case:

The Clean Power Company, based in Cincinnati, Ohio, has been in operation for 5 years. The company produces an energy regulating device that automatically regulates the use of power sources in homes and businesses. Recently, they have realized that in order to stay in business, they will have to move their operations out of the country. They have purchased approximately 500 acres next to the Chavon River in the southeastern part the Dominican Republic.

The land is totally undeveloped. However, it is located across the river from the Altos de Chavon complex that has shops, restaurants, and other commercial attractions. This land looks like a tropical paradise with palm trees and access to the sea via the Chavon River.

As part of the sales agreement, the seller, Teltac Corporation, has agreed to put in roads, septic systems, and water lines. However, electrical power and sewer lines will be up to Clean Power. Clean Power Company plans to be self sustaining by using solar power. Teltec has informed them that there should be no problems running sewer lines directly into the river as the Chavon River is clean and large and can absorb the waste.

You are the Director of Corporate Development in charge of spearheading the development of this new site. In addition, you are responsible for transitioning US employees to the new location and hiring local employees. You will need to decide which Cincinnati employees will go to the new Dominican Republic location or if the company should rely solely on local Dominican workers.

Clean Power also plans to build a new school for local children to address overcrowding and the lack of basic necessities, technology, and space for the students. Clean Power desires to be a good corporate partner in this community, which has many dirt roads and undeveloped areas.

Management knows that the initial capital outlay in this initiative will drive the price of the stock down, thereby upsetting the shareholders. However, management believes it will prove a sound investment in the long run.

To see the Chavon River, go to http://www.bocachicabeach.net/altos_de_chavon.html
Double click on the last picture to enlarge the picture of the river.

Question 1:
What is Clean Power's corporate social responsibility for each ethical issue you have identified in this case? Write a minimum of 2 pages in APA format addressing these issues.
Legal
Economic
Ethical
Philanthropic

Question 2:
Stakeholder Management: Write a paper in APA format addressing the questions below regarding the following stakeholders: the environment, the employees, the customers, the community and the shareholders:

What are the above stakeholders' interests for each ethical issue or concern you identified? What are the stakeholders' responsibilities for each ethical issue or concern you identified? What are the possible decisions the corporation could make for each ethical issue or concern, and what are the possible effects on the stakeholders?

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