Recommendation regarding whether to Relocate ABCs manufacturing Operations to China

Recommendation regarding whether to Relocate ABCs manufacturing Operations to China

            On the social and ethical responsibility that the board of directors of ABC Company has is the need for a logical response to the issues that the company has at hand. One of the issues is the ability to maintain the employees and to resolve the unrest by the union of workers in the reading area. The union is guided by the labor law and therefore the workers have to be considered in this quest to solve this employee unrest and dispute. The board ought to be able to uphold their ethical responsibility, they should be able to conduct this process in a manner that upholds the ethical standards of this company as guided by section 406 of the Sarbanes Oxley Act (United States Congress 2002). It is only evident of the sacrifice that is made by the employees over the years. Given that our employees have been working with the company for over 20 years. The integrity of the company ought to show in this kind of instance. The ABC Company has the capacity to avoid the conflict with the employees that could lead to a strike by the employees. In order to solve this, only 15 percent of the company’s annual profit will cost. This is paid towards the employees as they too have been and are part of the ABC Company.

The other issue of concern that is raised the issue with the Environmental Protection Agency (EPA) which has brought their concerns on the fact that the ABC is causing environmental degradation through the pollution in the air and water. It, therefore, demands that the ABC ought to be in a position to try and solve this issue within a given timeline of 2 years. A cease or desist order has been given to the company for this reason. A cease or desist order is one that is given to an institution that orders them to stop an action or face certain consequences. The fact is that there is no need to go through some of these court orders, as some are unnecessary. The company ought to be able to not only handle the company matters but also to observe the consequences that their production may be bringing their operations towards the environment.

The ethics that are set by this company allow the company to be able to maintain as well keep an interest in the environmental factors of the region. The fact that it would only cost 10% of the annual interest to correct this wrong is a matter that requires massive consideration. In accordance with the environmental law. The United Nations have been on the frontline in trying to keep the environmental safety in order to avoid the consequences of environmental abuse (NLRB 1947). These include global warming, death, and losses where there is water pollution the aquatic life is also affected. The UNFCCC is a convention that was enacted in September 2017, the convention was meant to battle the climatic changes as connected to the Paris Convention of 2016 which aims for similar outcomes (UN 2015). The fact that the world is fighting to maintain safety in the environment. The ABC should be ethical enough to avoid being part of the problem. The cost is worth it compared to the cause. Even though it is a business, the issue of being a burden to the environment ought to be taken care of in legal ways with the aim to settle the issue of environmental degradation. The social effect in the issue of environmental degradation is that it is located in one of the poor states of Pennsylvania.

The effect will directly affect the employees of the company and their families and this is unfair to the individual people in this society. They have the right to enjoy a clean environment like the other individuals regardless of their social status or position in the society. The issue has to be contained and the respect accorded to the individuals living in the Reading region because they too need to be protected from environmental degradation like every other part of the world. The ABC Company ought to be the last place that such incidences would cause such distraught to the employees and their families. This is likely given that most employees of the company are from within the state and their families are bound to live nearby.

The other issue that ought to be addressed id the issue on the proposal given by the Chinese investors in regards to the stopping of the ABC operations in Pennsylvania and moving the business to the Chinese City. The deal is that the ABC has the option of buying the China Mill steel at the advantage of less binding environmental laws (O. C. Ferrell 2012). The growth within the population demands on having some changes in the environmental laws that will help in the preservation of the environment. The ethical consideration of ABC in concerns with the environmental issues at hand contradicts with the guidelines of the ethics in the company.  The losses that will be incurred in buying the Chinese steel mill and taking the products to the US through the transport and the other charges in the procession and in the reaching of the clients in the United states (Linda K. Trevino 2016). The ethical decision towards both the Chinese, the environment of both areas and the employees in Reading ought to be considered in the ABC company decision towards this matter.

My recommendation to the issue is that the only cost that would be on the employees and the cleaning up of the environment after the messes made by the production of the products in the company. The ethical move is to maintain the employees at ABC by maintaining the initial location and the initial market of the company. The cleaning up of the environment is also very considerate since the pollution is caused by the ABC Company. It is, therefore, our responsibility to accept the budget that comes with cleaning up such messes. The amount of both the issues facing the company and the decision of rejecting the proposal given by the Chinese is an important way to provide for the valid status of the availability of sorts and in my opinion is the best decision. It will cost the company 25% of the annual profits to solve these issues but the cost is worth it. In conclusion, the board needs to consider these factors and issues carefully so as to come with the best decisions as well as the way forward in regards to the issues.