THE HISTORY OF BUSINESS ETHICS AND STAKEHOLDER THEORY IN AMERICA
In this assignment you will be asked to apply stakeholder management theory to the following scenario:
A public corporation of 980 employees manufactures a popular brand of garments (mostly jeans) that are primarily made and sold in America nation-wide. It has a large contingent of employees in several small rural communities in the Eastern US and is the primary employer in all of those communities. Two of its 5 shops are unionized, but the union and management have a good working relationship. The company has traditionally marketed its clothing line as Made in the USA and attracted a bit of a cult like following as a result, but an outside consulting firm has suggested that significantly greater profits are possible if a different strategy is employed. The corporation is subsequently considering whether to off-shore its manufacturing facilities to a poor nation to save money on labor. It would also discretely discontinue its Made in the USA marketing ads and hopefully ride the wave of its previous marketing campaigns for a while. It is estimated that total cost per unit of production will be decreased by one third which equates to tens of millions of dollars.
Please write a paper in which you respond to the following:
Provide a paragraph summarizing the concept of stakeholder management based on your readings.
How do you think the following stakeholder groups in the above scenario will be impacted?
What would you recommend the employer described above should do?