Question

In: Operations Management

Assume you are the owner of a small apparel manufacturer with approximately fifty employees. Your business...

Assume you are the owner of a small apparel manufacturer with approximately fifty employees. Your
business is located in a blighted area of town where the jobs you provide are important, but the
insurance costs of doing business there are significant, too. Recently, fire and theft coverage has
escalated in cost, but it is essential to protect your premises and inventory, and local ordinances require
that you purchase it. You have customarily provided health coverage for your employees and their
families, which many of them would not be able to afford if they had to bear the cost themselves. You
would like to continue providing this coverage—though, due to your small employee base, you are not
legally obligated to do so—but these costs have risen too. Finally, you would prefer to stay in this
location, because you feel an obligation to your workers, most of whom live nearby, and because you feel
welcomed by the community itself, which includes some longtime customers. Still, you may be forced to
choose between paying for your employee health care costs and moving to a different area of town
where fire and theft coverage would not cost as much.

  • How will you make the decision within an ethical framework?
  • What will you, your business, and your employees gain and lose based on what you decide? What, if anything, do you and your business owe the community of which you have been a part for so long?


Solutions

Expert Solution

1. As an employer you should keep employee health care at the top priority. Even if it means to relocate your business.

If the employees are have assurance of their health cover, they can work more freely without thinking about the adverse situations.

Ethically also it's more important to provide health coverage which is a basic necessity than to stay in that particular location.

Also you will be able to easily pay for fire and theft coverage.

2. You will have assurance about your employee because of the health coverage. Thus it would be easy in day to day business activities.

Your business will gain a lot if the employees are not concerned about their health and work freely with their full potential.

Employee would be happy for themselves and their family. A health coverage would ensure them to focus on their work rather than petty issues.

3. It would be a tough decision to choose between the community and employees because you actually owe to both of them.

But as an employer you are a kind of guardian for your employees hence your first priority should be their safety.

Thus you might take a tough decision to move your business to a different part of the town but still try to serve this community.

Please do Upvote if you liked the answer.

Thanks.


Related Solutions

Assume that you are a consultant to a small business. The owner of the business does...
Assume that you are a consultant to a small business. The owner of the business does not have an accounting background and has turned to you for assistance.The owner believes that one or more employees may be stealing inventory from the business. Write a memorandum to the business owner in which you identify the type of business and answer the following questions: Identify two (2) signs that an employee might be stealing from the business that detail what should the...
Assume you are a small business owner and operate within your own home. You must determine...
Assume you are a small business owner and operate within your own home. You must determine which accounting method and accounting period to use. What would you choose? Explain your reasoning. Your reflection should be at least 150 words.
Assume that you are going to start a small business of your own. Describe the business...
Assume that you are going to start a small business of your own. Describe the business and discuss the following: What costs you would incur; What competition you might experience; How you would determine the price you would sell your product; and, How much product you would produce?
Do you support trade if you are a small local business owner? Share your thoughts and...
Do you support trade if you are a small local business owner? Share your thoughts and tell us your interested industry, and how free trade and different trade policies such as tariffs and duties will affect your business?
If you were a small business owner would you want to most of your costs fixed...
If you were a small business owner would you want to most of your costs fixed or variable?
Your client is the owner of a business with six employees, and is thinking about setting...
Your client is the owner of a business with six employees, and is thinking about setting up a qualified retirement plan. What questions would you ask the client, and why, to determine what kind of plan would be best for her? What questions would you ask the client, and why, to determine whether there might be some retirement-planning alternative better than a qualified plan?
If you were a small business owner, how would your inability to collect your receivable timely...
If you were a small business owner, how would your inability to collect your receivable timely affect your business operations?
You are a business owner and your business is growing but you believe it is not...
You are a business owner and your business is growing but you believe it is not growing fast enough and you need an infusion of capital to help speed up the growth. You have a friend who is willing to loan you the capital needed but he wants to make sure that you are able to pay the loan back (plus interest) and he needs some proof that you can deliver. What financial statements are you likely to furnish to...
You are a small business owner considering two alternatives for your phone system. Plan A Plan...
You are a small business owner considering two alternatives for your phone system. Plan A Plan B Initial cost ($) 50,000 120,000 Annual maintenance cost ($) 9,000 6,000 Salvage value ($) 10,000 20,000 Life 20 years 40 years The discount rate is 8%. Which alternative would you pick? Plan A or Plan B
Assume that you are going to start a small business of your own. Further, imagine that...
Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm. Describe the business and its likely main competitors. How would you structure your advertising and customer service to differentiate your product/service? How easy would it be for new competitors to enter your market and erode your customer base or selling price? What...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT