Question

In: Accounting

NuComp Company operates in a state where corporate taxes and workers’ compensation insurance rates have recently...

NuComp Company operates in a state where corporate taxes and workers’ compensation insurance rates have recently doubled. NuComp’s president has just assigned you the task of preparing an economic analysis and making a recommendation relative to moving the entire operation to Missouri. The president is slightly in favor of such a move because Missouri is his boyhood home and he also owns a fishing lodge there. You have just completed building your dream house, moved in, and sodded the lawn. Your children are all doing well in school and sports and, along with your spouse, want no part of a move to Missouri. If the company does move, so will you because the town is a one-industry community and you and your spouse will have to move to have employment. Moving when everyone else does will cause you to take a big loss on the sale of your house. The same hardships will be suffered by your coworkers, and the town will be devastated. In compiling the costs of moving versus not moving, you have latitude in the assumptions you make, the estimates you compute, and the discount rates and time periods you project. You are in a position to influence the decision singlehandedly.

(1)Who are the stakeholders in this situation

(2)What are the ethical issue in this situation ?

(3)What will you do in this sitaution ?

Solutions

Expert Solution

Answer:

a)

The stakeholders in this sort of circumstance would be everybody related with the organization, the president, the workers, the suppliers ,the investors, the clients, the bankers as well. Each and every individual who are consistently communicating with the organization will be affected in light of the fact that, they are habituated for being the organization situated there.

b)

The moral or ethical issues are:

  • childrens training or education will be hampered
  • Misfortune from sale of house.
  • what is the assurance that organization will do well in missouri.

c)

I will choose in moving the organization when it will profit the whole community as some time and not just to stay away from taxes and move the organization to my old hometown with the goal that I can have a few of fun at my hometown. I will definetly take earlier approval of the considerable number of stakeholders by casting a ballot or voting framework.


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