Business Ethics Case Study: ABC Steel Inc.

As of December 12, 2017, our company ABC Steel Inc. is faced with various issues regarding our day to day external and internal operations. Issues that are in the ecological and economic interests of our company. To begin, it is of the utmost importance we address the pollution levels our mills are emitting. The Environmental Protection Agency has deemed our pollution as an excess amount that is above their standards regarding water and air pollution. We must become more aware of the ecological consequences our steel mills bring to our environment. Because we operate with a code of ethics, and our code explicitly states we will adhere to the laws put forth by the federal, state, and local governments we must abide by their rules. If we are

It is our responsibility to conduct business with the highest regard of our ecological surroundings, and our environment is included within the confinements of said surroundings. Secondly, it is equally important to address our labor force and the recent demands, regarding wage increases, that have become prevalent over the course of last year. The labor force has suggested we increase their wages that of which align with their economic position within our company. It has been stated by financial advisors, along with our accountants, that this will diminish profits by 15 percent over the course of the next five years. With that in mind, it is crucial to remind our Board of Directors that ABC Steel, Inc. is the largest employer in Reading, Pennsylvania. Additionally, we must be aware of the economic state of Reading when analyzing the implications our absence would inflict upon the city. The unemployment rate is currently sitting at a staggering 41.3 percent within the working population of

Without the amount we employ already, the total amount of money in circulation will decrease, which will reduce consumption in Reading and set back the economy further. Lastly, we must discuss our recent negotiations with China to relocate our operations and conduct business overseas. This idea of relocation shares similar parallels with our economic issues regarding our labor force. We must be aware of the effect our displacement may have on the city as well as our labor force. Although the wages for Chinese workers are drastically lower than the wages currently being negotiated in the U.S. our removal from Reading will create a higher unemployment rate, despite the appealing wages put forth in China. On another note, Chinese officials have recently announced that they will be decreasing their total steel output, by 20%, by the year 2020 . Additionally, our federal government has alluded to an increase in tariffs that could be placed on imported foreign steel . The decrease in Chinese steel production would give us the opportunity to raise our steel prices, to comply with an increase in demand for steel if we see it as