J Buffalo Case

1254 Words6 Pages

J. Buffalo who owns J.Buffalo Corp. has convinced current and former employees to transfer their jobs and retirement benefit plans to a new subsidiary called Great Plain Combines which he expected to fail. J. Buffalo has violated the ethical standards “Hiding information.” When J. Buffalo was convincing employees to accept the transfer of their jobs and retirement, he did not fully disclose that he expected it to fail, therefore he was hiding information that has harmful results. In our case the employees would not have considered transferring to Great Plains knowing that the corporation will be short lived.
The Laura Nash and Perspective model indicates that J. Buffalo violated ethics since he may have changed his decision. If J. Buffalo were on the other side of the fence he would have like to have known that the subsidiary was a scapegoat. He is trying to solve his corporation J. Buffalo’s problems of all time low of tractor sales and trying to stay afloat. Over time he would continue to feel uncomfortable about what he did. Maybe possibly feel just as comfortable as he did the day he made his decision to proceed with the subsidiary. Even though the corporation will have gained negative publicity, the corporation will still be alive and might maybe the news will blow over.
J. Buffalo would try to justify his actions by saying he is trying …show more content…

If the corporation was on the wall street journal with headlines “corporation cheats employees out of retirement for monetary gains.” The corporation would reconsider their actions since it brings upon negative publicity. Buyers may sympathize with the employees who lost their jobs and no longer support the corporation by not doing business with J.B. It would affect the corporation’s valuation its stock will go down and that is not something shareholders would