Navigating Ethical Dilemmas in Corporate Decision-Making: A Stakeholder-Centric Approach

Navigating Ethical Dilemmas in Corporate Decision-Making: A Stakeholder-Centric Approach

NuComp Company operates in a state where corporate taxes and workers’ compensation insurance rates have recently doubled. NuComp’s president has just assigned you the task of preparing an economic analysis and making a recommendation relative to moving the entire operation to Missouri. The president is slightly in favor of such a move because Missouri is his boyhood home and he also owns a fishing lodge there.

You have just completed building your dream house, moved in, and sodded the lawn. Your children are all doing well in school and sports and, along with your spouse, want no part of a move to Missouri. If the company does move, so will you because the town is a one-industry community and you and your spouse will have to move to have employment. Moving when everyone else does will cause you to take a big loss on the sale of your house. The same hardships will be suffered by your coworkers, and the town will be devastated.

In compiling the costs of moving versus not moving, you have latitude in the assumptions you make, the estimates you compute, and the discount rates and time periods you project. You are in a position to influence the decision singlehandedly.

Instructions

Who are the stakeholders in this situation?

What are the ethical issues in this situation?

What would you do in this situation?

Post by classmate 1

• The stakeholders in this situation include the company, the president, employees, the community, myself, and my family.
• The ethical issues within this case mainly revolve around the presidents decision to move the business to Missouri. The president is only thinking of himself because Missouri is his hometown and he has a fishing lodge there. The president does not seem to have considered the costs of moving operations, nor does it seem as if he has thought of anyone else other than himself.
• I personally would evaluate the situation in a business perspective. I would look to see if the projected revenues outweigh the cost of moving operations. I would then present the information to the president while also recommending doing a evaluation on what employees and the town believe that the company should do. Companies play a critical role for towns. Bringing work opportunities, living opportunities, and education opportunities, leaving the town would demolish the place. I would make sure that the president not only thought about himself in this situation and would be sure that he would also know all of the others it will affect.

Post by classmate 2

Who are the stakeholders in this situation?

The stakeholders in this situation include:

• NuComp Company: The company’s leadership and shareholders have a significant stake in the decision, as they are concerned with the financial health and profitability of the organization.
• Employees: This includes not only the person tasked with making the recommendation but also all other employees of NuComp Company.
• Local Community: The town where NuComp Company is currently located is a one-industry community. The decision to move or stay will have far-reaching consequences for the local economy and the well-being of the residents.
• Missouri Community: If NuComp Company relocates to Missouri, it will affect the local economy there as well.
• The President: The president of NuComp Company has a personal interest in moving to Missouri due to his boyhood ties and ownership of a fishing lodge there.

What are the ethical issues in this situation?

The ethical issues in this situation revolve around conflicting interests and values. On one hand, there is a financial incentive to move the company to Missouri, potentially benefiting the president and shareholders. On the other hand, there are ethical concerns related to the impact on employees, their families, and the two communities involved. The potential devastation of the current town and the upheaval of employees’ lives raise moral questions about the responsibility of the decision-maker.

What would you do in this situation?

In this situation, an ethical course of action would involve a comprehensive analysis of the costs and benefits, taking into account the well-being of all stakeholders. It would be important to consider the long-term consequences of the decision beyond just financial gains. The decision-maker should engage in open and transparent communication with all affected parties, seek alternative solutions that minimize harm, and consider options that allow employees to retain their jobs and communities to thrive. Personal interests, such as the president’s attachment to Missouri, should not unduly influence the decision, as ethical decisions prioritize the greater good and minimize harm to those affected. Ultimately, a decision that values the livelihoods and well-being of employees and communities would be the most ethical course of action.

Reference

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2018). Business Ethics: Ethical Decision Making & Cases. Cengage Learning.

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!