Cutting Jobs at General Motors Case Study Essay

975 Words Oct 15th, 2010 4 Pages
I. Cutting jobs at General Motors is a case that explains the issues taking place, and have been taking place with General Motors (GM). GM is at a place where the only money being dealt with is the money they have to pay their workers. This includes hourly pay, benefits, and pay to their retirees. Since the 1970s, GM sales has been declining. To better the company, and get them back on track, the CEO of GM, Rick Wagoner, announced a restructuring of the company. He explained how he wanted to study the product mix. This also included cutting 2,500 jobs which calculated out to 14% of the workforce. He also spoke about closing some manufacturing plants by 2008. It has been said that General Motors just does not produce cars that …show more content…
There are also four perspectives of social responsibility that is key as well. The first responsibility is economic responsibility. This is the perspective that says the social responsibility of an organization is to make profits and provide attractive returns on investment. This is an important responsibility to their employees as well as their supplier’s employees because this brings in the profits which is what gives them the money to be able to pay their workers as well as keep the business running properly. The second responsibility is the legal responsibility. This is the perspective that the social responsibility of an organization is to obey laws and public policy. This is also an important responsibility because if the company doesn’t obey the laws and public policy, the state could shut the company down leaving hundreds of thousands of workers jobless. The third responsibility is ethical responsibility. This is the perspective that an organization should respond to the spirit as well as the letter of the law. Just as the second responsibility, this works just like it. Not following this responsibility could shut the business down, leaving many people jobless. The last responsibility is the philanthropic responsibility. This is the perspective that organizations

More about Cutting Jobs at General Motors Case Study Essay