BYP12-7 NuComp Company





Ethics Case
BYP12-7 NuComp Company

Stakeholders can be defined as the people or groups affected by a company’s business activities and affect its decisions and actions. The stakeholders of a firm can be categorized as internal stakeholders and external stakeholders. The internal stakeholders are those working within the business. These include employees, owners, and investors. External stakeholders are those who do not work within the company but remain affected by the company’s actions. They include customers, the community, the government, trade unions, suppliers, and creditors. The stakeholders in NuComp Company are its employees, owners and the community.

An ethical issue refers to a situation that requires an organization to choose between alternatives that must be evaluated as right or wrong. The ethical issue involved in the case is whether the company should relocate and give the company a chance to thrive in Missouri or to remain in the current state and brave the tough conditions for the sake of its stakeholders. Established in a one-industry community, the company risks collapsing the economy of the town by relocating. The matter at hand therefore is; as the company plans for its continuity, does the community remain within its continuing plans for social responsibility? By relocating to Missouri, the firm is guaranteed to disrupt the lives of its employees. The greatest ethical burden lies within their situation, as the law requires that the company follow the provision of the mobility clause stated in the employment contract. (“Employer relocation: your rights” 1) For the company to make the decision to move, it must consider the needs of its employees and not just that of the firm’s president.

Faced with the situation, I would base my decision on the results of the economic analysis. This analysis should evaluate the future benefits realized from the move against the cost of the relocation, compensation and possible redundancy for the employees. The outcome of the choice to relocate should however, ensure maximization of profits and minima costs. Part of the company’s profits if realized, should be ploughed back into the community in the former location.

Works cited

“Employer relocation: your rights” GOV.UK. np. 27 Jun 2014. Web. 20 August 2014

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