The Recalcitrant Director

According to the article, I would have voted for the proposal that temporary work be done at Plainville and when the new plant came up at Southwestern USA. The proposal is very attractive because it solve the problem of customers going away to other suppliers and new entrant problems. This solution was excellent till the recalcitrant director pointed out the ethical dilemma. The main reason is that the firm needs more production capacity now and the new plant will start operation only three years down the line. On the other hand, the directors have evaluated the proposal of licensing production but this suggestion is not acceptable.

After that, I think Byte should be honest to tell administrators and the potential employees that this is a temporary plant for only 3 years. It is because there may be fewer workers willing to work at a temporary plant; also, banks may not give housing loans to employees of a temporary plant; and children of workers may not have excellent schools or facilities in town. Furthermore, if the company does not tell the truth, it will also be held liable for the displaced people because Byte has misled them. Thus from both legal and ethical perspective, Byte should inform the administrators and potential employees about the temporary nature of the operations.

Moreover, jf a plant closes down and there are 1,200 workers, 4,000 people would get displaced. The result would be torn families, unemployed workers and a devastation of a town. Suffering in general; Not only would it lead to suffering of the local people, it would bring ill reputation to the company Byte.

In my suggestion, Byte should go in for temporary facilities at Plainville and announce that the plant is temporary and will shift to Southwestern plant that will come up in three year's time.

This is an appropriate step because it will take care of the ethical issues. As pointed out by Williams we are not interested in doing grave damage to the community. However, I disagree that if we tell the truth the proposal will not be viable. Byte will be able to attract temporary workers who know that this job is only for three years. After three year Byte can shift its facilities to the new plant.

There is another compromise formula. This is that the employees be informed that since this Plainville is a temporary facility they will be provided employment after three years at Southwestern Plant. Byte should keep its promise and should offer a job to each of its Plainville employees that turn up for work at Southwestern plant.