Question: Case Study (1) about Plant Relocation Course: PHIL 3108- Business Ethics Mr. Abdullah is a Chief Executive Officer of an electronic company which is facing
Case Study (1) about Plant Relocation Course: PHIL 3108- Business Ethics Mr. Abdullah is a Chief Executive Officer of an electronic company which is facing the problem of increasing costs. There are many reasons for the production cost to increase. First, there is an employee union in the company that negotiated for an increased salary and benefits. The second reason is strict Health and Safety regulations which require a higher cost related to the purchase of safety equipment for employees. The third reason is that there are environmental regulations in the country that require the company to use an expensive chemical for disposing of industrial waste. All these reasons lead to increased production costs for the company and subsequently declining profitability and competitiveness in the industry. Like the competitor companies, Abdullah is also thinking about moving the company's factory to a developing country. He analyzed various options and think about a neighboring country where there is less cost due to the lower average salaries of staff, fewer health and safety regulations, and fewer environmental regulations. All these factors bring the cost of production down in that country. As he is finalizing the deal of moving the plant, he gets the information that in this country, there are protests against companies for creating industrial waste. The protesters are of the view that the industrial waste in this country is leading to children being born with some diseases and thus demanding compensation from the companies. While he is driving home after work, he is also thinking about employees who are working in the company who will become unemployed as part of the process. Based on the above situation, answer the following questions. Q1. What is your opinion on whether the company should move the production to the new country or keep it in the same country? Justify your answer. Q2. If the company decides to move the plant to a new country, how the company can reduce the undesirable unethical outcomes? Q3. What are the ethical principles that are related to this case study? Analyze
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