Due to competitive disadvantages of high labor cost and heathcare expenses, a ma

Question

Due to competitive disadvantages of high labor cost and heathcare expenses, a manufacturing company is considering the relocation of its manufacturing plant from a small city in midwest to a border town in Mexico. Approximately 20% of the residents of the city are employed by the company, and many others are employed in businesses such as banks, restaurants, shopping centers, and grocery stores that would suffer a decline in business if the company decide to relocate. Does the company have a social responsibility to factor into its decision the impact that its move would have on the city? Explain your reasoning

Explanation / Answer

Yes, the company does have a social responsibility towards the community as they are the major employers in the city and if they leave and shift focus to a new state they will leave about 20% of the people jobless as a result they would be unemployed and it would create a big problem for the people who used to work for the company

social responsibility plays a major factor in this situation as the business was set up by the initial workers and now they need to be protected to the company must think about the employees also .

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