Question

In: Accounting

The CoverAll Carpet Company (not a real firm) recently posted job vacancy notices in the local...

The CoverAll Carpet Company (not a real firm) recently posted job vacancy notices in the local paper for five high-paying skilled jobs. The employment law in this state requires that all applicants be hired on the basis of their demonstrated productivity for the firm that hires them. Ten unemployed members of the community appear on the day of the job interviews. All of them have the demonstrated ability to do the work CoverAll will expect from anyone it hires for this job. Three of them are recent additions to the community. They left their homes in California after a mudslide destroyed everything they had. Two of the job applicants are relatives of existing employees of Coverall. One applicant needs the job because her daughter was just diagnosed with leukemia.

Question: Would your answer change were you to find out that the community in which you live is planning to run advertisements in California newspapers pointing out that the housing and job shortage in your region makes it undesirable as a destination for those fleeing California?

Solutions

Expert Solution

The answer here depends on the core values of CoverAll, as well as its concern for the long-term profitability of the firm. If loyalty to the local community is uppermost for CoverAll, then it would makesense to not hire the bulk of the applicants from California. The local community does not want to attract more former residents of California. If the local customer base for the carpets makes up a sense of having all the fleeing persons then it would br difficult for the company as the employment law in this state requires that all the applicants be hired on the basis of their demonstrated productivity for the firm that hires you. If CoverAll wants to stay in the long run then the company has to consider the advertisements meant to be given in the california newspapers pointing out that the housing and job shortage in the region.

Then on the basis of this advertisement ou can hire the Three recent additions to the community who left their homes in california after a mudslide destroyed their houses


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