Purdue Global University Business Law Paper

Read the factual scenario as to

Something is Rotten in Hondo

, (Attached)

Prepare a three-page analysis that defines the concept of stakeholders, identify all stakeholders in this situation and separately address the interests of each stakeholder in this situation.

Also, analyze whether the decision-maker’s responsibility to provide for his or her family outweigh his or her ethical responsibility to company stakeholders.

Use and cite at least three additional authoritative sources as you examine the involvement of each stakeholder in this factual scenario other than the text materials.

In addition to fulfilling the specifics of the assignment, a successful memo must also meet the following criteria:

MINICASE: MGMT – 05
BUSINESS ETHICS PROGRAM
Something’s Rotten in Hondo
Topic:
Environment
Characters: George, Plant manager
Bill, George’s boss
George Mackee thought of himself as bright, energetic, and [having] lots of potential. So
why was this happening to me, he thought. George, married, two children, with his wife,
Mary, had moved to Hondo, Texas, from El Paso four years ago and was now the manager
of Ardnak Plastic Inc., a small plant that manufactured plastic parts for small equipment. The
plant employed several hundred workers, which was a substantial portion of the population
of Hondo. Ardnak Plastics Inc. had several small plants the size of Hondo’s, and George had
a good relationship with Bill, his boss, in Austin, Texas.
One of the problems George’s plant had was that the smokestack emissions were
consistently above EPA guidelines. Several months ago George got a call from Bill, stating
that the EPA had contacted him about the problem and fines would be levied. George
admitted the situation was a continual problem, but because headquarters would not invest in
new smokestack scrubbers, he didn’t know what to do. Bill replied by saying that margins
were at their limits and there was no money for new scrubbers. Besides, Bill commented,
other plants were in worse shape than his and they were passing EPA standards. George
ended the conversation by assuring Bill that he would look into the matter. He immediately
started calling his contemporaries at other Ardnak plants. He found they were scheduling
their heavy emissions work at night so that during the day when the EPA took their sporadic
readings they were within standards. George contemplated this option even though it would
result in increasing air contamination levels.
A month went by, and George still had not found a solution. The phone rang; it was Bill. Bill
expressed his displeasure with the new fines for the month and reminded George that there
were very few jobs out in the industry. That’s when Bill dropped the whole thing into
George’s lap. Bill had been speaking to the Mexican government and had received
assurances that no such clean air restrictions would be imposed on Ardnak if they relocated
15 miles south of Hondo in Mexico. However, Ardnak must hire Mexican workers. Bill
explained that the reason for relocating would be to eliminate the EPA problems. Bill told
George he had one week to decide whether to eliminate the fines by correcting the current
problems or by relocating.
George knew that relocating the plant on the Mexican side would devastate the infrastructure
of the city of Hondo and would continue to put contaminants into the air on the U.S. side.
After mentioning the possibility to Mary, other concerns were reinforced. She did not want
him to be responsible for the loss of jobs for their friends and extended families. What
should George do?
Author: Dr. John Fraedrich, Assistant Professor of Marketing, Southern Illinois University
1992 Arthur Andersen & Co, SC. All rights reserved.
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