Bus 2291 Pt Malden Mills Case

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I am here to tell you about key facts and ethical issues about Malden Mills case. During the early evening hours of December 11, 1995, a fire broke out in a textile mill in Lawrence, Massachusetts. The fire destroyed three of eight factory buildings in Lawrence. The fire seemed a disaster to the company, its employees, and its customers. The fire also was a disaster for an entire community and even for the numerous businesses that depend on its products. Because Malden Mills was the last major textile manufacturer in the town with 2400 employees and it supplied the economic lifeblood for the surrounding communities. In addition to that, many popular outdoor apparel companies such as J. Crew and REI also use its product. The company contributed approximately $100 million a year into the local economy. As CEO and president, Aaron Feuerstein faced a turning point for his company and must make a decision. There were three options he could choose. First of all, he could have used the fire as an opportunity to follow his local competitors and relocate to more economically attractive countries such as Mexico or Taiwan for cheaper labor. Also, he could have simply taken the insurance money and decided not to reopen at all. The last option he had was to rebuild his plant at the same location and keep the jobs in the local community. For him, the decision was a clear one. He puts high value on ‘corporate responsibility’ that the company has to take care of not only stockholders, but also workers and communities. So, he couldn’t just walk away from this problem and he decided to follow his third option. But even more surprising fact is that he continued paying his employees and extended their medical coverage even though his workers wouldn’t be producing anything. Next, Janelle will talk about stakeholders, ethical lenses, and

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