Essay Title: 

Corporate Social Responsibility

March 24, 2016 | Author: | Posted in law

Corporate Social responsibility

One of the major challenges of business is that oftentimes managers are faced with serious ethical decisions , which can impact the economic activity in different ways . Theorists claim that business ethics and corporate social responsibility should be deeply inherent into the very essence of each economic activity . However , very often it is quite hard to solve the contradiction between ethics and profit . The case of Speedy Motor Company is not an exception . Yet , even despite the poor market situation and fierce competition , there should had been another decision [banner_entry_middle]

rather than firing 2000 people simultaneously without warning them in advance

The foremost mistake that the managers of Eastland assembly plan made was cutting so many jobs at once . The decrease in demand is certainly substantial economic reason to think about cutting costs . However , it was more socially responsible to hold job cutting in several stages , so that each employee could find another suitable place for him or at least ensure that he will not need money for living . The massive job cut was inevitable , because market realities don ‘t accept sentiments Governmental regulation , in turn , is direct interference into business which contradicts the principles of market economy . In such a way , the best solution of the situation was to hold job cutting using reasonable plan that includes several stages

First of all , the employees of Eastland assembly plan had to be noticed no less than 6 months about the dismissal . This period seems to be pretty much enough for a person to find another place of work Moreover , the managers of the facility in this situation have to name the exact people that would be fired (if the dismissal is selective Otherwise , the normal work and spoil the atmosphere within the collective . Yet , those people have to be informed anonymously in to avoid possible conflicts and misunderstandings . Certainly , it is extremely important to compensate people fired the time they would be jobless . Thus , it is reasonable and necessary to provide them with half a year wages , so that they can leave normally while looking for another job . It is also useful to give each one of them a recommendation in to speed up the process of finding a new place of work for dismissed employees

The most affected stakeholders in this situation are certainly employees and labor union – their representative . However , since the reputation of the company might suffer due to the substantial noise of this irresponsible social action made by Speedy Motor Company , another group of affected stakeholders is shareholders of the company . It is obvious that unfavorable rumors and articles in mass media about massive dismissal impact share prices negatively making the price go down . The latter , in turn , reflect on the assets of shareholders of the company

The primary responsibility for the laid off should be taken by the company executives . They are the main people in charge and they are those ones that define and determine the strategic development of the company… [banner_entry_footer]

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