Purchase Solution

Corporate Responsibility Issues in Manufacturing

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

The document discusses and analyzes the decision making process for an organization faced with the dilemma of relocating its manufacturing plant overseas. The discussion analyzes the impact that various decisions have on the different stakeholder groups, both in the U.S. and in the possible new overseas location, in terms of benefit and harm. 1255 words with 3 references.

Solution Preview

Clean Power Company faces many ethical dilemmas in moving its operations to the Dominical Republic on the Chavon River. There are U.S. employees who may be affected if they do not or cannot go to the new location. There are considerations for how new employees in the Dominican Republic will be compensated. These are economic concerns, though there
are some legal concerns as well, for employees in the U.S. who are laid off. Ethical concerns surround running the sewer line directly into the Chavon River and whether wages offered to new employees will have enough of an impact to improve the quality of life. Philanthropic concerns include the building of the new school for the children in the community along the
Chavon River.

There are ethical issues from a legal perspective that surround the routing of the chemical waste into the Chavon River. Though the river is clean and large enough to handle waste, there may come a time in the future when it will not be able to absorb waste from Clean Power Company. Though Teltec has stated that running the waste directly into the river should be
acceptable, there may be regulations in the country that Clean Power is not aware of. The organization must research this, to ensure it will be in compliance.

Those who may be laid off in the U.S. operation are eligible for unemployment benefits, as long as they meet their state's requirements for length of employment. Clean Power must use caution in firing or letting employees go, when it announces the closing of the facility. However, if there are more than 100 employees at the facility, Clean Power must act in
accordance with the Worker Adjustment and Retraining Notification (WARN) Act, which requires a 60 day notification to workers prior to the facility closing (U.S. Department of Labor, 2009). Choosing to fire employees after this notice is given can end up looking like an attempt to reduce ...

Solution provided by:
Beatrice Martino, MEd
Education
  • MEd, Jones International University
  • BSc, DeVry University
  • MPH, Walden University
Recent Feedback
  • "Thank you so much!"
  • "Great work"
  • "thanks for the information"
  • "Thanks for the information"
  • "Excellent Work, very well-written, clear and concise."
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Operations Management

This quiz tests a student's knowledge about Operations Management

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Global Strategic Alliance of Starbucks Corporation

    After understanding the meaning of the corporate social responsibility we will be discussing about different issues related to corporate social responsibility in Starbucks.// Corporate social responsibility refers to conduct the business by emphasizing

  • Inquiries regarding international business

    Global businesses operate in multiple nations around the world, either to obtain competitive advantage in terms of manufacturing or sourcing, or to explore new business territories.

  • Business Ethics - Mattel and Home Depot

    It is clear that in this issue the company was not following the Corporate Social Responsibility in the initial stages of manufacturing and designing the products at its manufacturing facilities in China.

  • Social Responsibility and Regulation

    Some countries will require the company to meet certain goals or standards in their levels of corporate responsibility.

  • Mattel Case Study: CSR

    I am evaluating the Mattel case study in the context of Corporate Social Responsibility. Specifically, socially responsible organizations behave in certain ethical ways.

  • Corporate Social Responsibility

    375404 Making a Case for Corporate Social Responsibility Scenario You are the CEO of Carpeteria, a successful carpet manufacturing company headquartered in Alabama.

  • CSR- Corporate Social Responsibility

    • Discuss corporate social responsibility in your business. • Discuss the social issues facing your company. • APA reference slide A shareholder is essentially an individual or group that has an investment or interest within an organization.

  • Addressing Issues in Ethics and Legal Conflicts in Business

    First of all, management should take its corporate social responsibility related commitments seriously.

  • Corporate Expansion Strategy

    It is able to realize economies of scale in purchasing as well as in manufacturing. The marketing of TCL through timely market information supports its core competency of top class manufacturing at low costs.

  • This post addresses ethical behavior & social responsibility

    The solution also determines where corporate responsibility ends and personal responsibility begins.

View More Related Solutions