Maldin Mills: Business Ethics a Stakeholder and Issues Management Approach - Case Study Example

On the morning of 11 December 1996, the Malden mill was destroyed by fire. As the CEO, Aaron Feuerstein was faced with various decisions. He had to make up his mind whether to shut the mill, relocate to a location with less taxation and cheap labor, relocate to the places where his local competitors were, or continue running the business. He chose the latter.

Ethical Issues

Aaron felt that he had mutual respect and obligation towards his employees.  If he let the workers go, they would lose their source of income and become desperate. He also felt that he had a responsibility towards the injured workers when he paid them their salary even when they were out of work. After all, he was expected to do what was right and human (Weiss 2014).

Key Stakeholders

The key stakeholders here are the CEO and the board of directors. This being a family business, the family also had a stake in this business. The shareholders also had a role to play.

Mitigation for the Ethical/Unethical Outcomes

When the business went into bankruptcy, the stakeholders should have pulled resources together to secure the business. The business should also have shut down for a while. Alternatively, the company should have put the workers on a half wage for the future of the business.

Suitable Alternative

The best alternative would have been to shut the business for a while as it would have given time to strategize.
What If It Was A Publicly Traded Company And I Had An Interest?

My recommendation would not have differed as I feel that as much as I would be interested in the profits of the company, there is also a moral responsibility towards the workers who relied on the mill.

Conclusion

Aaron felt like he failed, but he acted ethically. The way he did it was wrong though. He relied on the prospects of a good future that were not assured. If all the stakeholders had a say in the business, I believe it would not have come to the point of losing the vision of the business.