Managerial ethics - Case Study #1 Shutdown at Eastland

... BUS 520a - MANAGERIAL ETHICS Case Study #1 Shutdown at Eastland Submitted by: Aaron Rogers On: October 16, 2004 To: Dr. Gary Barfoot Via: www.turnitin.com Case 1: Shutdown at Eastland Executive Summary Labor lobbyists and union leaders express concern and outrage at Speedy Motor Company's seemingly hasty decision to close down its Eastland, Michigan based auto manufacturing plant. The lobbyists and union leaders point to the Eastland plant shutdown as a reason why there should be Federal laws regulating plant closures. Answers to Questions The closing of a plant when it ceases to be profitable does not violate the "moral minimum" unless: the closure is the result of internal fraudulent action(s), the closure violates or breaks employee contracts, or the closure harms others (the phrase "harm others" is difficult to quantify and is largely subjective...but I am mostly speaking of the financial hardship levied against the employees and the greater community). (Sollars, Lecture 5, 2001). From the information presented in the

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