5. From an ethical standpoint, what does your group conclude is the most appropriate action that should be taken by the company? (You may f1nd the concepts of utility, rights , justice, and caring helpful in mamg your decision.) The Situation Managers must often make choices among options that are presented by environmental circumstances. This exercise will help you better appreciate the nature and complexity of the kinds of tradeoffs that often result.

Th e Dil e mma You are the CEO of a medium-sized, unionized manufacturing corporation located in a town of about 15 000 people.

The nearest major city is about 200 kilometres crway.

W~h about 500 workers, you are one of the five largest employers in town. A regional recession has caused two of the other largest employers to close down (one went out of business and the other relocated to another area).

A new foreign competitor has set up shop in the area, but local unemployment has still risen sharply. All in all, the regional economic climate and the new competitor are hurting your business. Your sales have dropped 20 percent this year, and you forecast another drop next year before things begin to turn around.