Business Ethics

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Category: Business and Industry

Date Submitted: 08/09/2011 11:34 AM

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Assignment Essay

It seems like it is getting harder and harder for American businesses to make a buck. One such example is Evergreen Solar. They have been hit hard by a sudden price decrease in their product, silicon wafers that go into solar panels. They are actively seeking aid from the U.S. government, but so far it has been to no avail. However, they have recently been approached by a Chinese company that shared with them an opportunity to expand in China. They explained that the Chinese government would sponsor two thirds of a loan to build a factory to produce their products in China. This would decrease their production cost substantially, allowing them to profit at the current price level.

CEO, Michael Hillow has a hard decision to make. He wants to maximize the positive impact that his company can have on society, while “keeping the doors open” on his business so that he can continue to have a positive impact. One option he has is to keep his factory in Tennessee. His other option is to take the Chinese government up on their generous offer and move his factory there, while closing his factory in Tennessee.

There are many stakeholders that will be affected by his decision. Among the stakeholders are the 800 employees that work at the Tennessee factory. Additionally, the community around the factory benefits greatly from the employment of its residents at the factory. Last, the potential employees and community in China where he can move his factory could benefit from the new jobs that he could create.

Mr. Hillow has a lot to consider. If he keeps the factory in Tennessee, it will benefit his current employees and the surrounding community for as long as he is in business, but that may not be long. If he moves his factory to China, he will be able to offer 800 new jobs to people that really need it and their local community will likely improve with the heightened level of employment. If Mr. Hillow uses a Utilitarian approach when...