Sustainability of Decisions, Essay Example

Introduction

It is important to understand globalization because it has important consequences on local communities. As a result of the desire for businesses to expand, industries have shifted to areas that are able to support a higher net profitability, which is contributed to by encouraging less expensive labor and utilizing materials that are easier and less expensive to acquire. In this new era, it is important for companies to determine how to maximize profits, but it is also the ethical responsibilities of CEOs to protect the areas in which they do business. Many towns grow dependent on the labor provided to them by companies and have fallen when these organizations relocate. A key example of this problem occurred when the GM factory closed in Detroit, leading to mass economic difficulty (Wojdyla). Because the company did not uphold its social responsibility, a majority of the city is unemployed. Globalization is beneficial to an extent, but bringing industry to a new area isn’t necessary contributing to the rise of a new location if the rights of workers and customers are not upheld. Because the CEO is able to predict and reverse damage, they are ethically and morally responsible for ensuring the well-being of the areas they operate in on a large scale.

Analysis to Support the CEO’s Statements

In his conversation, the CEO aims to demonstrate that resources have been used in the most efficient way and that he cannot be responsible for the financial devastation of the Italian town. To show that there is no significant impact, it would be beneficial to generate a concrete analysis of the value of the homes and business in the Italian town prior to and following the transfer of businesses to other nations. To do so, a student’s t-test for variability that compares the values of homes and businesses before and after the company’s inhabitance could be conducted. In addition, it would be helpful to determine which aspects of the labor force contributed to the transfer of business to China, Russia, and Rumania. To do so, the same test could be used to determine the financial impact in these areas.

Conducting the Student’s T-Test

To conduct the student’s t-test, it is necessary to understand the mean incomes and prices or individual incomes and prices of houses and businesses in the area (Rice). In addition, knowledge of the standard deviation and number of data points is needed. For example, the value of 1000 houses could be utilized in this calculation. If we were to assume that the mean price of houses is $50,000 before the intervention and $25,000 after the intervention with a standard deviation of $10,000 for both values, we would be able to use the following formula to determine whether the variance between these two data sets have a statistically significant distance.

In this case the standard error of difference would be 0.447. Since this value is above a p-value of 0.05, we could claim that the result is not statistically significant and there is no meaningful difference between the values of houses prior to and following the intervention.

Potential Outcome for the Society

Although the village is small, it is plausible to consider that its labor force may have been sufficient to produce the products necessary on a global scale. This would depend heavily on the infrastructure put in place in the town, such as factors and other technology that would contribute to the ability for these products to be produced cheaply. Another important factor in understanding this relationship is the wages that were provided to the labor force. Since Italy has different employment laws compared to other countries, the companies that produce these products may be able to gain more profit by hiring employees in nations with little or no minimum wage. Conducting the aforementioned analyses on the Italian neighborhood and towns in China, Rumania, and Russia will determine how the variances in these towns have differed as a consequence of the intervention. To further this understanding, a cost-benefit analysis could be conducted to determine whether it is really reasonable to relocate the business to a new territory. If significant savings are not found, it may have been reasonable for the business to continue in the Italian town.

Personal Support

It is challenging to support the CEO’s decision because it was made on neither or moral or economic basis. Since we do not know the figures associated with moving the business to other countries, we cannot defend the concept that this was a profitable move. In addition, it is apparent that the move added to financial difficulties in the Italian town, which created an ethical problem in which the CEO is the only person that has the power to address. In spite of his goals, it appears that the decision to change locations was not carefully considered and the CEO would have benefitted from providing the situation with extra consideration.

The Common Good

The concept of “The Common Good” states that goods could be shared and be made beneficial between members of a community (International Theological Coalition). While this may be a different item or service for each individual, the idea represents the notion that at minimum, people are receiving the basic things they need to survive, such as food, clothing, and water. Under this definition, it appears that the CEO will be acting morally provided that he ensures the livelihood of the people living in the Italian town. While he does not need to restore the financial standing of the area, it is plausible for him to simply provide the basics. Although the view of the problem is the same, the concept of the common good decreases the extent to which the CEO is ethically required to intervene and support the town.

If the CEO was willing to commit to the common good, his decision could be viewed as acceptable. By doing so, he is agreeing that he has a responsibility to help the individuals in the Italian town, which is an important realization because he alone has the power to help them. Moving his business to a different area is not detrimental if it does not prevent individuals for achieving their right to live. However, the CEO subscribes to this philosophy, his decisions will not be problematic.

Conclusion

In conclusion, it is important to emphasize that the CEO must carefully consider the outcomes of his decisions on the community. It is preferential for him to subscribe to the common good so he is better able to protect the well-being of the community he chooses to leave. Provided that he gives people the means to survive, it could be said that the CEO is acting morally.

Works Cited

International Theological Commission. In Search of a Universal Ethic: A New Look at the Natural Law. 2009. Web. 23 September 2015.

Rice. ‘Student’s’ t Test (For Independent Samples). N.D. Web. 23 September 2015.

Wojdyla B. The Ruins Of Detroit Industry: Five Former Factories. 16 December 2008. Web. 23 September 2015.