The dilemma identified in the case is a familiar ethical situation faced by most top management employers of companies. This essay will provide a deeper look into the ethical dilemma faced by Patricia, Vice President and an important stakeholder at Murray manufacturing.
Employee lay-off is a process by which employee costs are cut down by removing them from the organization in order to save capital for the shareholders. This process is also known as downsizing of employees. In the ethical case scenario, Murray Manufacturing Inc. is facing problems regarding their growth curve. It seems to have reached a stagnant position and in order to make the organization grow consistently with appropriate funds and capital margins; the top management of the organization is facing a dilemma as to downsize the employees or not by giving another company their contract that is outsourcing. Exactly the decision that has to be made is either to downsize employees and enhance shareholder profit by 300,000 dollars or to let the telecommunication division under Roger as it is and think about the welfare of the employees.
The primary stakeholders of any company according to savage et alare divided into internal and external. These internal stakeholders are inclusive of employees and managers. However, the external stakeholders are inclusive of vice president, president, stock analysts, local community, government, suppliers and even customers along with competitors. But, there are some stakeholders whose classification cannot be done such as the directors in the board and the auditors who should be taken as stakeholders interface.