Final Case Analysis for Adms 3660 Summer 2013 Employment Practices in American Clothing Company

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1. The key ethical issue of American clothing company. a) The key ethical issue of American clothing company is it has to do something to meet the losses in slack sales periods caused by too many workers such as layoffs. However, such behavior is deviated from the company’s fundamental tenet for this company take the concept that apparel manufacturing should treat worker as well as possible. b) Reasons for such ethical issue are 1) Treating employees well is the company’s core belief. Randomly laying off workers contradicts to the values, but 2) the reality force determines that the company has to do something to avert the loss. Therefore, American Clothing Company faces the dilemma of making trade-offs between these two. 2. Two…show more content…
2) American Clothing Company enjoys high reputation for its no-exploit belief. 3) American Clothing Company cannot afford so many employees between October and March if they do not lay off their employees. 4) American Clothing Company has spent thousands of dollars to train each new employee and is alarmed for whether or not the new employees would be ready for the massive amount of orders in the spring. 5) Employees may still return next year if they cannot find another job with better salaries and working conditions, which is not likely to happen. b) The impact of such facts can be listed as following: 1) given the fact layoff is what most apparel companies do; the public would have to tolerate layoff issues of the company. 2) Their reputation may be damaged if the company fires employees. 3) If American Clothing Company still hires so many employees at the slack sales period, it is hard for this company to get a stable profit. 4) It is expensive for American Clothing Company to train completely new workers in the spring and could cut into their profits. Lack of employees may damage the company’s order fulfillment rate. 5) There is good chance that employees would come back next year due to inability to find another job with good working conditions and manageable wages. So lack of experienced employees may not be a problem next year. Based on such facts, American clothing company sinks

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