Case 2.7 Ethical Dilemma

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Case Analysis 2-7: Milton Manufacturing Company
Milton Manufacturing Company is a closely-held company has been in business since 1999 when its President Irv Milton first opened the business with its primary operations in Long Island City, New York and factory branches and warehouses in surrounding areas. The business had increased revenue over its first ten years of business from $500,000 in its first year to $5 million in 2008.
However, in 2009 revenues declined to $4.5 million along with net cash flows from all activities declining in 2009 as well. Overall capital expenditures for the company have been continually increasing by 26% each year. Milton had planned on borrowing $20 million in the fourth quarter of 2010 from
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2. Gather all the facts.
Markowicz felt that he had a primary responsibility to the company to ensure that the production process runs smoothly at his plant, and after the first half of 2010, it reported profitable operations and net cash inflows from investing activities was positive for the first time in three years and had already reached $250,000 in just the first half of the year. This meant an increased level of production and increased pressure on machines; therefore naturally the breakdown of machines was increasing. In addition, Milton’s regular supplier had hiked about the prices on the motors that he needed by 25%, while Markowitz had been able to find from a supplier overseas for 25% off temporarily to build customer base.
Further, machines continued to break down because of non-functioning motors and were exposing workers to considerable safety concerns. Therefore, fewer machines were being used and in turn increased demand, which in turn further increased delays of meeting customer demand for the products.

3. Identify the stakeholders and obligations.
The stakeholders of Milton Manufacturing Company include the owners, the business itself, the employees and officers, the factory workers, customers, and the suppliers.
Markowicz has obligations to
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