The stakeholders of the XYZ zippers company include the community, the shareholders and the management. Under the managerial category we have the chairman of the company, the general manager followed by other subordinate staff as stipulated in the hierarchy of managerial position.
Effects of closing the company on the stakeholders
The community at large will be affected adversely in that so many people will be rendered jobless because the zippers company is the major employer of the community. In addition, the closure of the company will lead to poor quality of education since money donated by the company will no longer be available to the schools .Moreover the customers who are also part of the community will be affected to, because they will no longer be able to access the products from the company with ease.
The core objective of any given company is to make profits for the shareholders. Therefore to the shareholders of XYZ if the company will be closed they will no longer make profits from their company.
The management includes the chairman of the company, the general manager and other different staff. The closure of the company will therefore cause them to lose their jobs,
Does this justify the closing of the company?
The shareholders are the primary stakeholders of the company. They are the major decision makers of the company's if the company is not generating enough profits to cater for all the expenses in the company for instance payment of wages to the workers; their decision to close the company is therefore justified.
Is it ethical to close the plant?
In any given business, it is guided by business ethics. This refers to the application of ethical principles to organizations to either understand, judge or direct individual and organizational ethical decision making. There are different types of ethics but for the case of the xyz company their decision to whether close the plant will be determined by the following ethics:
Utilitarian mindset, which is also described as the teleological theory entails that the consequence of the act is the most vital determinant of the act being moral or not. This mindset takes into consideration that the ethical decision is dependent upon the consequences (end) of the actions.
Deontological ethics on the other hand, questions whether an action is right, fair and honest that is, it is concerned with the consequences of the action but the reason behind it looks to create a set of universal rules though it is so hard to come up with asset of universal rules that fit all circumstances.
Kantian ethics states that people must follow a categorical imperative which is an absolute moral standard that does not vary based on individual circumstances. In other words this means that the rightness or wrongness of actions does not depend on their consequences but on whether they fulfill our duty. From the above discussion on the different types of business ethics it would not be ethical to close the plant because all the stakeholders involved in the xyz Zippers Company would suffer severely if such a decision is taken thus those perspectives are the influencing factor whether it is ethical to close the plant.
Steps taken by the company to lessen social costs on the community
First the company should minimize their spending on their support to education, arts and sport since such activities requires a lot of investment. With regard to high operating costs brought about by high cost of infrastructure improvement, the company should look for government subsidies from the local government. About the falling sales of their products, it should modify their products to meet new fashion trends in addition it should also expand their market to international trade through adverts for instance the social media platforms. Another thing with the issue of decline in military spending the company should find why that is happening and from their findings it should improve in its services.
Perceptions of the assignments
As seen in the case above, it is important for any given company to do internal auditing often because this might be the reason why the XYZ revenue is declining thus prompting to its closure. Furthermore, any established company should be vigilant about the current fashions and tastes of the products from their competitors so as to keep on being in the market.
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