The top management of SRVC in city L, announced its plan of relocation of its manufacturing and assembly unit to city M in October 2015. As a major producer of pickup campers and camper trailers the firm experienced declining profits for 5 consecutive years. The cost of raw materials, labor, utility cost, taxes and transportation expenses increases the production cost. The firm considered several geographical areas for its relocation. The prime reason for relocation is to minimize the transportation cost, tax structures, labor cost and other financial inducements. Out of many options, the firm considered city M as the most favorable location for relocation. Before two weeks of announcement of relocation, the firm chose R industrial park and began recruiting through state employement office and arrangement to sell or lease the property at city L was initiated. R industrial park offered 5 advantages SRVC in its relocation. Other factors like reduced labor cost, decreased utility cost, tax exemption also added weightage for relocation. To determine: The legal and ethical responsibilities of a firm to its employees when decision to cease its operation is made.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 4CS

Summary Introduction

Introduction:

The top management of SRVC in city L, announced its plan of relocation of its manufacturing and assembly unit to city M in October 2015. As a major producer of pickup campers and camper trailers the firm experienced declining profits for 5 consecutive years. The cost of raw materials, labor, utility cost, taxes and transportation expenses increases the production cost.

The firm considered several geographical areas for its relocation. The prime reason for relocation is to minimize the transportation cost, tax structures, labor cost and other financial inducements. Out of many options, the firm considered city M as the most favorable location for relocation.

Before two weeks of announcement of relocation, the firm chose R industrial park and began recruiting through state employement office and arrangement to sell or lease the property at city L was initiated. R industrial park offered 5 advantages SRVC in its relocation. Other factors like reduced labor cost, decreased utility cost, tax exemption also added weightage for relocation.

To determine: The legal and ethical responsibilities of a firm to its employees when decision to cease its operation is made.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Give three examples of unethical behavior involving location selection, and indicate which ethical principle is violated?

Can you explain the following question in full details. Please provide detail so I can understand the detail of the assignment. 4.8 We Rescue, Inc., a firm providing nationwide ambulance services, intends to expand its service range through a new branch in the suburbs of the mid-Atlantic region. The data were gathered to evaluate three different possible sites, Suburb A, Suburb B, and Suburb C, for the new location. The data include factor ratings, minimum satisfactory level, and importance rankings of each factor (attribute), as shown in Table EX 4.8. Attribute (factor) Weight Suburb A Suburb B Suburb C Satisfaction level Importance Ranking Contracting and Land Cost 0.1 65* 76 45 70 3 Labor Availability and cost 0.15 50 65 60 65 5 Transportation and road network 0.15 60 70 75 80 4 Supplier/ Support Service companies 0.13 75 60 65 85 6 Average time per Emergency trip 0.22 95 75 70 95 2…

Give three examples of unethical behaviour involving location selection, and indicate which ethical principle is violated?