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Ethics and Shareholders

You walked into the lunchroom and overhead Jane and some of the company's managers discussing recent declines in company profitability; in part because of the restrictions placed on management's prerogatives to fire underperformers, reassign workers, establish pay grades, etc. You decided to join the discussion and wanted to add your two cents in the following areas:
The ethical dilemma of who the most important stakeholders to a company are: unionized employees, shareholders, the community, etc.
Does a company deserve to make more profits for its shareholders if it does this by not agreeing to higher wage demands from their unionized workforce?
What ethical responsibility do union leaders have to their members if the company is headed toward bankruptcy because of uncompetitive labor costs versus its nonunion competition?

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Does a company deserve to make more profits for its shareholders if it does this by not agreeing to higher wage demands from their unionized workforce?

A company should deserve to make more profits for its shareholders if it does this by not agreeing to higher wage demands from their unionized workforce. The issue will arise about having individuals paid more if the revenue is coming in consistently, and then a strike could occur as a result. In fact, when they both work together, they are making the community better. What is interesting is that most firms go behind their employees backs in order to accomplish this. This is done by means of deciding the budget for individuals, and this includes making sure that everyone gets their benefits that are full-time within the company. These are a couple of examples when this is the ...

Solution Summary

This solution discussed ethics in the workplace with both a union and nonunion scenario on how to deal with it.

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