JLA Electronics is a U.S.-based, high-tech company that manufactures and distributes com¬

puter and telecommunications equipment. JLA has developed a handheld, lightweight fax system, Porto-Fax, that will allow the user total freedom in receiving and transmitting in¬

formation. Marketing research studies indicate that the potential market for this item is large, and immediate action in test marketing the product is recommended.

Despite the fact that JLA has excess capacity at its current manufacturing facility, the company has decided to build a new manufacturing plant to accommodate the Porto-Lax and is in the process of deciding where to locate the plant. The current unionized employ¬

ees believe this move is being made to eliminate union involvement in the Porto-Fax man¬

ufacturing process. The management team that was formed to oversee the site selection process has already received bids from several locales, both domestic and foreign, offering a wide range of incentives to encourage the company to select particular sites.

Some of the incentives are personal in nature, such as housing at reduced cost for the selection team, reduced property taxes, open accounts at certain restaurants, and free tick¬

ets to local sporting events. Other incentives offered affect corporate profitability and in¬

clude reduced tax rates, low-interest or no-interest loans, outright grants, and low-cost prop¬

erty. The marketing research team has reported that product price will have a major effect on the sale of Porto-Fax and recommends that the selection team pick a site that minimizes costs.

Required:

1. What is meant by the term corporate social responsibility?

2. Should JLA Electronics consider its social responsibility when making the final decision regarding the site selection?

3. Describe the ethical responsibilities of the individuals on the site selection team.

4. Discuss the responsibilities that the union at the current manufacturing facility may have in this situation. (CMA adapted)