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I'm looking at the stockholders piece

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 ( indicate that structures within a corporation that transmit an ethical and cooperative commitment to employees boosts motivation to work. For more study on business ethics and social responsibility, view some of the many links at Regent (

As a group, consider the interests of the stakeholders in the Acme Motors scenario

Acme Management and stockholders
Maquilodora workers
Mexican government
Divide your group into the various stakeholders and then comment from each stakeholder perspective on the interests at stake in the Acme Motors scenario. Brainstorm with each other via the Group Discussion Board, on possible management strategies for addressing the situation given what you have learned in this course.

Next, the individual portion of this group project is for each person to compose a 8-12 slide presentation of synthesis that incorporates the group discussions and the conclusion for addressing the problem in the scenario. Include in your group analysis, current global economic and political policies that impact on your business decisions.

THe whole you know what I Am trying to accomplish:
Acme Automotive is one of the major US producers of automobiles in Mexico. You have been sent to the Acme automotive plant in Nuevo Laredo, Tamaulipas, Mexico as the new Operations Manager to respond to recent declines in employee morale, productivity, and cost effectiveness at the Nuevo Laredo plant in the past 12 months.

Talk of union organizing is of utmost concern to your supervisor in terms of short run and long run costs of production. Your job is to investigate the productivity/cost effectiveness problem and make recommendations to top management for goals and strategies in line with the Acme Vision. Your first day at the job, you receive the following letter from a disgruntled employee:

(Note- the 'Maquiladoras' to which the writer refers, is the word for companies that process Mexico-imported components, then export them.)

Dear Sir:

I've been working in Maquiladoras since I was 20 years old, and now I'm 27. I've gotten more and more worried, because my job is ruining my health and I have no way out.

Now I work at Acme, where I've been for about a month and a half. "You could say it's forced labor, considering how the foremen talk to the workers and how much psychological pressure they put on people. We work an average of 14-15 hours a day. There's no transport service to and from work, and we get off the shift at 4 o'clock in the morning. Usually we have to wait until 7 AM before we can catch a public bus. And when a bus does come, getting home costs 20 pesos. That makes a very big dent in your take-home pay - 380 to 400 pesos a week ($40-43).

My job is bending steel cables...which are about a centimeter thick, and I have to bend about 3500 a day. Because of what's passing through my hands every day, I can hardly sleep at night - the pain is so bad. Then I have to get up in the morning to do it again. In the future, I know that I can get carpal tunnel problems, which is a very scary idea. I've asked to change to another position, but no one wants to change because whoever works in this job gets a lot of pain in his wrists.

I feel that in three or four years my hands are going to be useless. I've been thinking that I'll have to get another job. What else can I do? They say work in the Maquiladoras is the best paid work here in the city. But there's not much difference from one factory to another.

This is all just normal - the standard. Really, I'm living my whole life in the factory. Because of the time and money pressure, I have no ability to develop myself even as a worker, much less as a human being."

After I had been working in Acme for a month, I went to my supervisor with my concerns about health and safety problems at the plant. He told me that I was putting the Maquiladora workers in danger by making waves. I know that the company's goal is to cut production costs and increase the profits from the engines we produce, but I am hoping you will consider the plight of the poor Mexican workers. I am hoping you will see through our eyes as well as from the eyes of the company officials.

Yours truly,

Enrique Santiago:

Quotes and idea taken from:

Bacon, David. "The Story of a Maquiladora Worker." Metro Detroit Greens. 10 Dec. 2000. Retrieved 20 Jan 2004 from

Solution Preview

The question wants you to examine the problem of worker dissatisfaction, falling productivity and low motivation in a sweat shop in Mexico manufacturing parts for Acme motors an American company. The question wants you to adapt the perspectives of a stockholder and that of a newly posted Operations Manager in the Nuevo Laredo plant. Even thought in reality there maybe different perspectives held by the two persons, you are to reconcile the two stands and in a way show that the two cannot have conflicting interests. The broader resolution of the question would be that the four group mentioned namely, the Acme management and stockholders, Maquilodora workers, consumers and the Mexican government cannot have conflicting interests.
<br>There are several assumptions which the question makes, first the question assumes that environmental issues can translate into measurable sales loss, however, it does not mention or give evidence if the worker dissatisfaction would translate into sales loss, an what would be the sales loss, what percentage would be the sales loss and what would be the cost of avoiding the sales loss. Second, the problem mentions 'important green consumers' however the question does not mention the money value of the important green consumer. Thirdly, the question mentions structures within a corporation that transmit an ethical and cooperative commitment to employees however the question never mentions the practical issues which need to be addressed like fair wages, medical supervision, reasonable hours of work and training&development. Fourthly, the question mentions that the there has been a fall in the level of employee motivation in the last 12 months, however the company never addresses the issue of what special happened at its Mexico plant during the 12 months to precipitate this problem. Fifth the question wants you to consider the current global economic and political policies, however what it does not consider is that the Mexican government is not likely to change its policies allowing such production facilities because it gets good payment in hard currency for the work done in Mexico. Finally the problem assumes that the stockholder ...